When you’re buying a new motorbike, what are looking out for? Manufacturer? CC? Reputation? Appearance and style? Performance? Safety? Price? For most buyers, probably all these factors have an impact on the final choice. But if you plan to take out a motorbike loan to make the purchase, then another factor to add to your buyer consideration list is affordability, aka the monthly motorbike loan repayments. Specifically cheap motorbike loan payments.
How much the bike will cost you on a weekly/monthly basis is probably a lot more relatable than the price tag displayed in the showroom or on the website. The monthly loan repayments essential break-down that price tag into smaller, more easily digestible pieces!
So are you looking for the cheapest bike repayments possible? Jade Bike Loans points out what you should be looking for to achieve cheap motorbike loan payments in the connection between bike loan interest rates, loan terms and the monthly loan repayments.
Rate-Repayment Context
There are a number of components that make-up a motorbike loan. There are the charges and fees applied by banks and lenders for starters. But the largest component is the total interest payable on the bike loan. Hence the general fixation on interest rates across the lending sector.
The specific interest rate that banks and lenders will apply to motorbike loans depend on their activity in the market and their own costs of sourcing borrowing funds as well as the cash rate set by the RBA. Some lenders may not advertise a specific Secured Bike Loan, as Jade Bike Loans does. You may have to delve further into the lender website to see what general Secured Personal Loan they have for the purpose.
Our Secured Bike Loan includes a fixed interest rate and this is significant to repayments. The cheap interest rate we secure for our customer initially, remains constant for the entire bike loan term. That flows on through to keep monthly loan repayments constant over the term also.
To save you the time of browsing the market, we’ve prepared an Interest Rate Comparison chart which shows the loans and interest rates currently offered by a range of lenders.
Comparing the repayments at the differing rates as displayed, clearly demonstrates the important connection between the interest rate on the loan and the monthly repayment for that loan. When comparing rates and repayments with our resources or your own research, remember that not all fees and charges may be included in the estimates. So an offer that may be made to you for a bike loan may differ from the results calculated on generic devices such as these calculators.
Loan Term-Repayment Link
Now we bring in the bike loan term for consideration in structuring the motorcycle loan to suit the desired outcome. Interest is charged on loans ‘over time’, hence the ‘per annum’. So it would logically follow that the longer the timeframe the more interest would be charged. There are other contributing factors such as the way the interest is calculated and when over the loan term, but for this explainer, we’ll keep it relatively simple.
- A long bike loan term = lower bike loan payments = greater total interest payable on the loan, compared with…
- A shorter bike loan term = higher bike loan payments = less total loan interest payable.
Deciding on what motorcycle loan term and the resultant repayment level before you speak with our lenders can be advisable. It gives our consultants a target to work towards achieving for you.
Individual lenders do have guidelines around the loan terms they will offer and that may come into play. Also remember that you can make extra payments on our Secured Bike Loan. This is permitted and such payments can be made intermittently as desired by the borrower. This can be a strategic way to reduce the loan term and interest total payable while still retaining a repayment level that suits your current budget. Finalising a loan prior to the scheduled end of the loan term attracts break fees which should be accounted for.
Calculating the Preferred Repayment
All this may seem quite complex but we’ve made the calculation part of the process super easy with our Bike Loan Calculator. You can use this loan tool at any time, prior to initial loan discussions, while tossing up between a number of different machines or during the loan application conversations with our consultants.
Enter the data as indicated and change different values to see how that affects the monthly estimated repayment. Keep in mind that loan charges and fees would also need to be added in so take the result as a ballpark only.
Of course, the total amount being requested will impact the bike loan repayment. We do offer the facility for ‘no deposit bike loans’ meaning the full purchase price can be included in the loan. Subject to approval. But if targeting a smaller repayment is the priority, then paying the seller a deposit from your cash resources to reduce the loan amount could be an option.
Achieving that Target Cheap Repayment
So now you know how repayments are calculated, you’ll likely now want to know how you can actually receive the cheapest bike loan repayments yourself. You’ll want to source the cheapest interest rate loan on the market and be in a position to negotiate with the lender to secure the loan term that gives you the repayment level you’re seeking.
Not always a simple task as lenders are not always up for negotiating directly with customers. Letting Jade Bike Loans handle the whole process on your behalf can deliver a superior outcome. We have access to multiple lenders and we know exactly which ones will be a match for your requirements. Add to that our bargaining power due to the volume of business we write, and you have several compelling reasons to simply call Jade Bike Loans for your motorcycle loan.
For cheap motorcycle loan repayments, contact Jade Bike Loans on 1300 000 003
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA ARE PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
