For most riders that are in the market for a new motorbike, the process also involves being in the market for a motorbike loan.
Riders tend to be much more passionate and particular about their choice of motorbike compared with buyers of some other consumer goods. Some car buyers for instance view a car primarily and solely as a form of transport to get them from A to B. Motorcycle buyers on the other hand appreciate their ride for the experience it offers and the possibilities it presents in regard to places to go and activities to undertake.
In the process of selecting their new motorcycle, buyers will be no doubt be undertaking a thorough investigation of the different makes and models available to suit their specifications. They will easily be in a position to understand and appreciate the nuances of each machine and the differences across the different ranges.
But the process of sourcing a suitable motorbike loan may not be as simple or as clear-cut, especially for those where finance is not their strong suit. Typical doubts and queries may include if there are different loans for variations in motorcycle makes and models and second hand versus new; differences from lender to lender; and the biggie, differences on the interest rate change on motorbike loans across the market.
We strengthen your finance knowledge with this ‘loan work-out’ – information on the differences and the similarities in the lending market for those seeking a motorbike loan.
Varying Makes and Models
The first thing you need to know is that the interest rate and loan specs advertised and/or promoted in the general arena by lenders will relate to brand new motorbikes for applicants with a good credit profile. Loans for second hand motorbikes may, but not necessarily, attract a higher interest rate, and individual lenders may apply different conditions such as limits on the total amount of the loan.
As far as different types of bikes – off-road, street, performance, adventure, etc, Jade Bike Loans offers the same Secured Motorbike Loan for all motorcycle categories. The engine capacity does not impact the loan.
Tip: if wanting accessories with your new motorcycle, include them in your order at the point of purchase so our consultants can include the price in the bike loan.
Motorbike Loan Lender Variations
Loans to purchase motorbikes are available through a range of banks and lenders though not all will specifically title the loan as a Bike Loan. Some finance companies and banks may offer a general Personal Secured Loan which is designed for a range of consumer goods such as cars, bikes, boats etc.
The consumer lending market is quite vast with finance companies, banks, finance brokers such as Jade Bike Loans and even motorcycle dealers providing finance through the bike manufacturers.
The structure of the loan, the interest rate, loan conditions as well as fees and charges will vary across the market.
When it comes to the interest rate there can be quite wide variations across the market. The Reserve Bank of Australia sets the cash rate and lenders then factor in their costs and risk assessment of a market to set their rates on different loans.
Interest rates can also be fixed or variable. We offer a fixed interest rate bike loan as it provides our customers with the assurance that their bike loan repayments won’t change during the term of the loan. Variable rate loans can change as interest rates in general change.
Comparing the Comparison Rate on bike loans from different lenders may provide insight into variations in fees and charges as that rate includes some but possibly not all, the fees charged on that type of loan.
It can be confusing when comparing the different motorbike loans on the market. Loan seekers can cut straight through that hassle by engaging Jade Bike Loans to source their loan. We are accredited with a vast selection of banks and finance companies so we can quickly, easily and expertly assess which loan best suits individual requirements.
Different and Similar Types of Bike Loan
The Secured Motorbike Loan is the most versatile and most widely used type of loan for purchasing new bikes. The lender accepts the motorcycle as the loan security and the loan is repaid in equal monthly instalments.
As mentioned above, not all lenders will name their loans the same, but the structure is similar. Finance companies have a tendency to label their loans with catchy titles as a marketing tool. But very often they are essentially a secured loan.
When the motorcycle is either not accepted as security or not offered as security against the loan, the option for buyers is an Unsecured Personal Loan. In some instances, this type of loan may suit collectors, vintage/restoration project buyers and others.
As implied, no security by way of the bike itself is provided against the loan but lenders may require some form of security or guarantee. Unsecured loans are seen as having a higher risk factor and as such the interest rate is higher than for secured loan.
Full Service Assistance
Jade Bike Loans offers a comprehensive motorcycle loan service which allows our customers to avoid the laborious tasks of sourcing and analysing numerous quotes in order to arrive at an informed decision. Our consultants handle the entire process and highlight the differences and similarities in quotes so buyers can concentrate on selecting the bike and leave the loan selection to us as professionals.
For assistance in sourcing a motorbike loan, contact Jade Bike Loans at 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.
