When taking on a loan to purchase a motorcycle, buyers have both responsibilities and protections under laws which may be state or federal regulations. Consumers should be across the detail so they are aware of their responsibilities over the term of the loan and how they may be protected should things change or occur outside of their control. As Licensed Credit Providers as approved by ASIC, Jade Bike Loans is required by law to follow certain set protocols and procedures when arranging loans for our customers. This includes providing a range of information in regard to consumer finance.
But outside of the finance and lending aspects, there are other issues that can occur that you might be wondering if those incidents would impact your loan. To dispel uncertainty and increase general knowledge, we’re covering off a few possible occurrences and what effect these events may have on your motorcycle loan.
Motorcycle Model Recalls
The idea for this article was sparked by the announcement of a recall on a number of very popular Ducati models. Some XDiavel, XDiavel S and Scrambler 1100 models have been recalled due to safety issues. On 8 April 2021, the ACCC (Australian Competition and Consumer Commission) issued safety recalls on bikes sold in certain time periods. More info.
For the Diavels it’s for MY 2016-2018 sold nationally between 1 March 2016 and 31 December 2019. The issue is around the sidestand which the ACCC lists the defect as ‘may become damaged over time’ and fail when the bike is parked. The hazard noted is if the sidestand fails and the bike falls over, it could potentially damage the rider, passenger and/or bystanders.
For the Scrambler, the defects affect 182 bikes that were sold between 1 April 2018 and 27 January 2021. The ACCC notes the defect as “improper manufacture where an exhaust cable may come into contact with the positive battery cable.” The hazard is described as an electrical short being caused if the two cables make contact and thus causing potentially a fire risk. A risk with the potential to cause an accident, injury or worse.
This is not the first time that motorcycles have been subject to safety recalls by the ACCC. In March 2021, recalls were issued for KTM, Yamaha and Husqvarna models.
In most cases, the manufacturer will contact buyers via the dealer network to advise them of the process which needs to be followed. The process to rectify the issue will of course depend on the problem. So how are you protected as a consumer and what impact may a recall have on your motorcycle loan?
General information on vehicle recalls can be sourced at https://www.infrastructure.gov.au/vehicles/recalls/index.aspx
Recalls are usually the responsibility of the manufacturer to repair and rectify at their expense. Consumers are protected under consumer guarantee laws for a range of issues. If the bike will be off the road for repairs for an extensive time period, it would most likely be a discussion to be had between the manufacturer and its customers as to what if any compensation may be offered to cover out of pocket expenses. If your bike is required for business, this may be a significant consideration.
A recall would not impact your loan in regard to repayments. You would still need to make your loan repayments. Use our online bike finance calculator to estimate repayments.
If the bike is recalled completely and the issue not fixable, that would be a different story in regard to how you approach your loan contract. It would depend on the compensation arrangement made by the manufacturer as the loan would need to be finalised and a new loan established for the new/replacement bike.
Insurance is required to be taken out when a bike is purchased under finance. The inclusions in the specific policy will determine coverage in the event of a recall.
Job and Income Changes
When applying for a secured motorbike loan or an unsecured bike loan, our lenders assess your application based on your current employment status and income. If your employment status changes, if you change jobs, you should advise your lender of these changes. An increase in income such as a pay rise does not necessarily have to be advised of.
If negative changes to your employment/income affect your ability to make your loan repayments, it is advised you contact your lender and discuss the options available.
Contact Detail Changes
When you change your contact details such as residence, email or phone, you need to address:-
- Advise your lender and Jade Bike Loans to update your details on the loan contract and so they can maintain contact with you over a range of matters.
- Update your details with the dealer where you purchased the bike so they can contact you in the event of a safety recall.
- State motor authorities to update registration details.
- Contact your insurer to update your insurance policy contact details.
Change is an inevitable part of life. If you have a motorcycle loan, being aware of what changes may impact your loan can be important. If you would like to discuss these issues further and for additional information on loan responsibilities and protections, give us a call.
For lending, quote call us on 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 INENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
