Apart from the crowd-less Melbourne Cup and US Presidential Election, the big news on Tuesday 3 November was the RBA cutting interest rates. Giving good reason for anyone thinking about applying for a motorbike loan to pay attention to what is often seen as boring financial news. What the news probably didn’t explain for you, was how the RBA rate cut might impact your current bike loan or a new bike loan. At Jade Bike Loans we're stepping up to give you an explainer and set out the path to getting a cheap bike loan.
RBA Interest Rate Cut Explainer
The Reserve Bank of Australia reduced the official cash rate by 15 bases points from 0.25% to 0.1%. This is not the interest rate that applies to consumer loans such as motorcycle loans. It is the rate that banks pay essentially to source their funds. Technical banking stuff!
When a rate cut is announced, it’s then up to the banks to decide if they will pass on all, some or none of that cut to their customers. It usually only applies to home mortgages. In this case, the major banks have announced that they intend to pass on the cuts to some home loan and business loan customers.
On the flip side, a reduction in borrowing interest rates also means a reduction in interest earned on savings accounts. So people with funds in the bank earning very little interest may be moved to spend some of that on a down payment on something from their wish list –possibly a new bike.
How Interest Rate Cuts Impact Bike Loans
Following on from above, initially these cuts will not have an impact on consumer loans but at Jade, we’ll be keeping across how it may flow through to what we can offer. Interest rates have been at historic low levels of late so all our recent bike loans have been established at exceptionally favourable levels.
Existing Jade Bike Loans are established at a fixed interest rate. That means, no change when interest rates change. That may seem unfair today, but when rates increase – you’re better off at your lower rate!
For loans currently being processed, your Jade consultant will be sourcing the cheapest rate from across our large number of lenders. Any reductions which are passed on by any of our lenders will be reflected in the quote we achieve for you.
New Motorcycle Loans
If the interest rate cuts, your income tax cuts or just the desire to get a new bike has motivated you into action, we explain what you can expect. If you’ve never applied for a consumer loan before, don’t worry, your Jade Bike Loans consultant will be handling all the hard work and guiding you through the process. That’s one of the great benefits of selecting to use our broker lender services to source your loan.
As licensed credit providers, we adhere to the Responsible Lender Guidelines as overseen by ASIC and these are very specific in the process that must be followed in regard to consumer loans.
Jade offers pre-approved bike loans so you can have your finance sorted, will know not only that you are approved but what your repayments will be on your estimated spend, before having to commit to a purchase.
How to Apply for a Bike Loan
- For any form of consumer finance you must be over the age of 18 and have proof of identity. A person over 18, such as parent, sibling or guardian might be accepted as a guarantor for a loan for a person under 18, subject to criteria.
- You will need proof of employment/incomes and you will be required to provide information in regard to your employment history, residential status (owning/renting), your income and regular weekly/monthly expenses and details of any other debts such as credit cards or loans. Your credit profile will also be assessed and reviewed by lenders.
- This all forms part of the standard loan application form. Plus you will need to sign a form of consent which gives the authority to source your loan.
- Plus you need to let us know what bike you’re thinking of buying or have paid a deposit on.
- With all the info from you, your Jade consultant proceeds to source you a loan quote with the cheapest motorbike finance interest rate applicable to your application. We’re not limited to just the major banks and the finance companies that you may have heard of. We have more choices, which means cheaper rates and cheaper bike loans.
- When you accept the quote, we proceed to process and finalise your loan for a prompt settlement. The settlement involves the bike seller/dealer sending an invoice for the price to the lender and the lender makes the payment. All are very straightforward and streamlined.
Your Jade consultant will provide you with all the info and a direct debit will be set up so your fixed repayments are deducted from your nominated bank account on the same date each month. When all repayments are made – you own the bike!
For a cheap interest rate bike loan quote, contact Jade Bike Loans at 1300 000 003
DISCLAIMER: THE INFORMATION, OPINIONS, DATA, POLICIES, PRODUCT SPECIFICATIONS AND OTHER CONTENT CONTAINED AND EXPRESSED IN THIS ARTICLE HAS BEEN OBTAINED THROUGH RECOGNISED REPUTABLE SOURCES, PRIMARILY IN THE PUBLIC DOMAIN. LIABILITY IS NOT ACCEPTED FOR ANY ERRORS OR MISINTERPRETATION OF SAID CONTENT. THIS CONTENT IS NOT INTENDED OR PROVIDED AS THE SOLE SOURCE OF INFORMATION OR AS SPECIFIC FINANCIAL ADVICE IN REGARD TO MAKING DECISIONS BY INDIVIDUALS OR BUSINESSES. THOSE THAT CONSIDER THAT THEY NEED PROFESSIONAL ADVICE SHOULD REFER TO A FINANCIAL ADVISOR.
