Scheduling the best time to apply for a motorcycle loan based on personal circumstances or RBA rate decisions may assist in securing a better finance outcome. Buyers may choose to source finance before they select their machine or after they have confirmed pricing with the dealer. They may choose the timing based on personal financial circumstances.
Astute buyers may follow the finance markets and schedule their finance application after the Reserve Bank has cut the cash rate. Enthusiasts may follow the used motorbike market and time their new machine purchase to capitalise on good resale prices on their existing machine.
What is the best time for you? We provide a few points to put in the mix when you are deciding the ideal timing to purchase your machine with finance.
Best Time to Apply for a Motorcycle Loan – Interest Rates
Riders requiring finance for a new machine will be wanting the best possible interest rates. Rates on consumer loans vary with lenders and will vary over time. Lenders can make changes to their lending rates in line with the timing of Reserve Bank cash rate decisions.
Lenders are not compelled to change their rates when the RBA announces a cash rate cut. Many will cut rates on certain lending products to remain competitive in the market. Some lenders may ‘move early’ by changing their rates in anticipation of an upcoming RBA decision.
Following the market, and particularly what is happening with the RBA, may provide insights into timing their application for the best rate offer. At its November meeting, the RBA was expected to announce a rate cut. But the surprise jump in inflation resulted in a hold on the cash rate. The prospects for the next rate cut are unclear.
Better Buying with Best Time to Apply for a Motorcycle Loan
Should you apply for finance before or after you’ve decided on your machine and agreed to a price with the dealer? Most buyers will typically find the machine and then consider their finance options. Scheduling the process of applying for finance before buying may contribute to a more streamlined purchasing experience.
Applying before buying can provide buyers with important information which allows them to ensure the price of the machine they select is in line with their finance commitments. Applications for pre-approved financing on Secured Motorcycle Finance can be submitted and approved about 4-6 weeks prior to purchase.
Applicants are provided with conditional approval, their borrowing capacity, and a finance quote. Providing a clear indication of their repayments and a target purchase price for the machine they can realistically afford. This may speed up the purchase process by avoiding time test riding and checking out machines outside the budget.
Buyers that have a machine to trade-in on a new model may keep an eye on the resale market for the ideal time to buy. Ensuring they receive the best price on their existing machine as a downpayment on the new model. Checking out what similar machines are selling for on used bike sales platforms may provide a useful guide. Depending on the machine and the dealer, private sales often attract better prices than trade-ins.
By increasing the return on the existing machine, buyers may reduce the amount required for the finance. This can be a positive in reducing repayments and potentially reducing the interest rate offered.
Personal Reasons for Best Time to Apply for a Motorcycle Loan
Personal circumstances can be a major driver for deciding the ideal timing to purchase a new machine with finance. The obvious consideration is when you can afford it! But buyers may look to other aspects of the process of taking on finance.
Lenders will be assessing income, debts and liabilities, and credit profile in determining the borrowing limit, interest rate and finance offer. If you are in line for a pay rise in the near future, waiting until after that comes into effect may improve the finance offer.
Reducing liabilities can also be addressed. Paying off other loans improves the personal balance sheet. Timing the finance application in line with when those liabilities are finalised or reduced, may result in a better finance offer on the new machine.
Securing Your Best Motorcycle Loan - at all times!
If doing the research to determine your ideal finance application time is not for you, leave it to your Jade broker to find you the most affordable motorbike finance. We’re across lending markets and will always find buyers the right lender for the best rates and most affordable finance.
Pre-application estimates can be obtained using our Finance Calculator and our current interest rates.
Applications may be submitted pre or post purchase, online or by phone for prompt attention and quick quotes. Providing buyers with the necessary finance information to make their purchase decisions.
If now is the best time to apply for a motorcycle loan for you, 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 IS 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.
" alt="">