We’re seeing it everywhere – prices and costs of just about everything have been on the rise. The reasons attributed to the current soaring inflation situation as noted by the RBA are both global and domestic. To rein-in inflation, the RBA has increased interest rates and that, in turn has flowed through to motorcycle loans.
In regard to many manufactured goods such as vehicles and some motorcycle brands, prices of new models are arriving at much higher prices than previous models. This is an outcome of a range of issues, particularly rising costs of components and possibly the semi-conductor shortage.
For those looking to purchase a new motorcycle with finance, it can be a balancing act to find the ideal loan solution which works with the individual’s budget as they deal with other cost of living increases. A solution which can offset or at least account for that possible extra amount in the purchase price.
Jade Bike Loans can assist buyers with cheaper motorcycle loans and ways to reduce their finance costs in light of rising inflation and general price increases. Landing that dream loan to buy that dream machine may be more achievable through consideration of choice of lender, loan structure and other aspects of the process.
We outline some of the considerations that buyers can address to achieve a cheaper motorcycle loan and overall, reduce the cost of buying a new motorcycle.
Outlook, Objectives and Overview
Initial steps can entail establishing a clear idea of expectations of what is hoped to be achieved. Reviewing current expenditure and income and setting a realistic amount for what can be managed on repayments on a motorcycle loan.
With a target repayment amount established, it can be more time-effective to look for a bike in the price range that will deliver that monthly loan repayment amount. Sounds complicated but our Motorcycle Finance Calculator makes that a very simple process.
Just enter the RRP for any number of bikes and see what the estimated repayments are calculated for that price. The results attained from using a calculator are only estimates but can provide a guide to what may be expected in a best case scenario. Individual loan offers made may vary from the repayment estimate displayed. But as a rough indication, this can be a very handy resource.
Establish personal objectives in regard to savings and affordability. The overall cost of the motorcycle is the purchase price plus the loan costs and total interest payable. The primary objective may be the lower repayment amount or it may be a lower overall cost. The ways these objectives are achieved relate to the interest rate and how the loan is structured as well as the amount borrowed.
Detailed Considerations
In simple basic motorcycle loans 101, the amount borrowed will affect the repayments and the total interest payable over the loan term. So both these aspects can be reduced by lowering the total amount requested for the loan. This may be achieved by paying a deposit rather than requesting no deposit motorcycle finance, which we do offer, subject to lender approval.
When interest rates were held at the historic lows, borrowing the full purchase price of the bike plus any accessories etc was an attractive option for many buyers. But as interest rates are now being normalised by the RBA and higher rates are applicable, the choice of deposit or no deposit can require greater consideration.
Don’t forget to check out any special offers available through manufacturers which may reduce the amount required in the loan.
The term of the loan also comes into play when a savings is being sought. A longer term will provide lower repayments but a larger total interest compared with a shorter term.
The interest rate is critical to both the repayment and the total interest. Securing the cheapest interest can come down to the lender. As you can see from our current best interest rates we can achieve must cheaper rates when compared with some banks and other lenders.
The best interest rates that you will see displayed by lenders apply to good credit rated applicants. So addressing any issues with the credit profile prior to applying for a new loan may result in a lower rate offer.
How We Can Assist
Lender choice can have a bearing on many of the aspects mentioned above. By opting to use our broker-style service we can assist by:
- Providing more choices and immediate coverage of a vast number of lenders to source the cheapest rate and best offer.
- Negotiating to achieve the preferred loan term, interest rate and other loan conditions.
- Save the time and hassle involved in sourcing motorcycle finance.
- Handle the dreaded paperwork!
With inflation expected to rise further before the end of 2022, buyers looking to save on motorcycle purchases and finance have options to consider.
For assistance on realising savings on motorbike loans, contact Jade Bike Loans at 1300 000 003 for cheap motorcycle finance.
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.
