It’s no secret that interest rates are at the lowest rates they have ever been. The secret is how you make the most of cheap interest rates by securing a genuinely cheap motorbike loan. That requires understanding how rates are derived, what loans offer the best rates, being able to compare motorbike loans interest rate offers to select the cheapest, knowing where to get the cheapest loans, being fully across your own financial objectives and being able to source a bike loan that will allow you the flexibility to structure the terms to meet your objectives.
How Interest Rates are Set: Explainer
Most of the talk about interest rates in the media is around the Reserve Bank setting the official cash rate. This is not the interest rate that applies to say motorcycle loans. It relates to the interest rate that banks and lenders might be charged when they source their funds to have available to then make loans to their customers. OK, getting too much into the technical side of finances.
In short, the official cash rate is a starting point and then each bank and lender sets the interest rate they charge on loans based on how much it costs them to source their funds; their knowledge of the market, eg the motorbike scene; their assessment of the risk presented by an individual application and other issues.
When the interest rate is low – you get less interest on your savings so if you’re saving to buy a bike, it will take you longer. But when interest rates are low, you pay less on a bike loan so you pay off your bike faster.
In May 2020, the Reserve Bank indicated that they were not going to lower interest rates further, so that means – this is the lowest they will be possibly for years.
Cheap Interest Rates v Cheap Motor Bike Loans
Low interest rates should not be used as the only factor when selecting who you will sign with for your bike loan. An advert for low interest rates may be hiding high loan fees and charges.
To keep it all in perspective, you need to get a complete quote for your bike loan from multiple lenders and then compare the overall cost of the loan once all fees and charges are included. For more information on comparing interest rates, head to our web page where we discuss that issue.
Just realise, doing all that yourself, can be very time-consuming and infuriating.
Sourcing a Cheap Interest Rate Bike Loan
So if you don’t want to spend a heap of time contacting multiple banks and finance companies to go through the bike loan application process, just so you can figure out which actually does have the cheapest interest rate – what do you do? Simple, use the services of a motorcycle finance broker - Jade Bike Loans.
Sourcing a range of loan options to secure our customers the cheapest loan is our core business.
- We know which lenders finance motorbikes, understand the scene and offer the best loans.
- We are accredited with many, many lenders so we can quickly assess the bike loan market for the cheapest rates and offers on any given day.
- We have access to industry-only lenders which individuals do not.
- We have the bargaining power to negotiate the interest rate down to the cheapest rate.
In a nutshell, that’s essentially how Jade Bike Loans sources the cheapest interest rates to form the basis for your cheap bike loan.
Structuring Your Bike Loan to Maximum Effect
Making the most of cheap interest rates involves deciding the best way to structure your own individual secured bike loan.
- Low interest rates can make the monthly repayments cheaper but your loan term longer, or
- Pay more on your monthly repayments but have the bike loan paid off faster.
That decision is yours to make personally and requires having clarity across your personal financial situation. We always advise that if required, people seek professional financial advice.
Not all banks and lenders will give you the flexibility to structure your bike loan to suit your requests. Many have strict guidelines over loan terms and other factors which are difficult for individuals to negotiate around themselves. But not so difficult for your Jade Bike Loan consultant. It’s our business, we do it every day.
So the bottom line is – interest rates are at historic lows but in order to make the most of the situation, you should be using the professional finance broker services of Jade Bike Loans to source you the cheapest overall bike loan and give you the flexibility to structure your loan to suit your current financial situation and work towards achieving your financial goals.
To talk cheap interest rate motorbike loans, call Jade Bike Loans at 1300 000 003 and have an initial discussion with one of our consultants.
