Due to the impact of the coronavirus, the past few months have been challenging on many fronts including for the lending sector of the finance industry. People who have wanted a bike loan have missed out. We’ve been motivated by a recent media article to reach out to those who have been rejected for a motorcycle loan and suggest you revisit your bike buying plans with a discussion as to how Jade Bike Loans may be able to assist you.
The media item that prompted us to post this article specifically related to new car dealers and how some of their customers, with seemingly acceptable credit profiles, were rejected for car loans during the COVID-19 crisis. They had buyers but couldn’t get them over the line and convert them into sales.
While this article specifically related to the motor vehicle sector, we presume similar scenarios were playing out in motorcycle showrooms across Australia. As a prominent finance broker in both the car loans and bike loans areas, we appreciate the frustrations experienced on both the seller and buyer side of this situation.
If you are in this position and were recently unsuccessful when you applied to a bank or finance company for a bike loan, we invite you to contact us to discuss how we, as brokers, can assist you.
Understanding the Situation
To put recent events you may have experienced in perspective, we offer an explainer of some key issues.
- While we feel for all car and motorcycle dealers that lose a sale because the buyer is unable to access finance, we note that it is not their role to assess the suitability of an individual for a bike loan. We acknowledge the experience that many have in their field and the many customers they have assisted. Many would definitely have a handle on bike finance.
- However, as we detailed in another article, the role of lenders, credit licensees, is overseen by ASIC under the Responsible Lender Regulations which are legislated via the National Consumer Credit Protection Act 2009. One of THE main aspects of this is that a credit licensee is not permitted to even make an offer of a loan to a customer if that loan is assessed as unsuitable for that person. There are very strict processes in place that lenders must follow in assessing an individual’s suitability for a loan under the law.
- As far as the banks and lenders being in a position to extend credit during the COVID-19 crisis, we have posted a number of articles around this topic. We especially noted that early in the crisis, when banks were hit hard by people requesting deferrals and the Government called on the banks to essentially support business with loans, we did observe a tightening in lending.
- A lot was happening very quickly and like a lot of businesses, the finance sector may have needed to time assess the situation. But fortunately, the situation has settled so if you were unsuccessful previously, give us a call, as the situation may be different now.
- The emergence of JobKeeper threw a bit of a spanner in the works in terms of loan applications. While people on the scheme were not technically ‘unemployed’, they were not all working. Many were ‘stood down’ which placed them in an unusual category for assessment in regard to a loan. If you applied for a bike loan while you were stood down and on JobKeeper but now your employer’s business has reopened and you’re back at work, your application may be viewed differently.
If you relate to any of these scenarios and were unsuccessful in getting a motorbike loan through a bank or finance company is say March-May 2020, then speak to us about a second chance bike loan.
How can Jade Bike Loans assist you?
- We may be able to assist by giving you a second chance at the bike loan you want to finalise your motorcycle purchase.
- As businesses are reopening and the economy moving into recovery stage, yes Australia is officially in a recession, but lending has eased back to more normal operation as opposed to the conditions which prevailed early in the COVID-19 crisis period. However, before you go off and just re-submit your application to the same bank or lender – making multiple applications for the same loan may have a negative effect on your credit profile. If you use the finance broker services of Jade Bike Loans, we are in a position to approach multiple lenders on your behalf without the process affecting your credit profile.
- Jade Bike Loans is accredited with many banks and lenders including industry-only sources. So we’re not limited to just using the major banks. If you had previously been unsuccessful with a bank, then give Jade the chance to give you a second chance through another of our lenders.
- Banks must meet their only strict guidelines in assessing loan applications. As an experienced broker, we have greater flexibility to negotiate with other lenders on behalf of our customers.
- We have strong bargaining power as we write a good amount of motorcycle loan business with key lenders.
Jade Bike Loans can source cheap motorbike loans at the best interest rates for both private buyers with Secured Bike Loans and for riders that are buying their bike for use in their business with the full range of commercial finance products.
To discuss a second chance motorbike loan contact Jade Bike Loans at 1300 000 003
DISCLAIMER: THIS INFORMATION HAS BEEN PROVIDED AS GENERAL MATERIAL FOR YOUR CONSIDERATION. INFORMATION IN REGARD TO GOVERNMENT POLICIES IS SOURCED FROM OFFICIAL AUSTRALIAN GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ERRORS IN PRESENTATION OR IN THE INTERPRETATION OF FACTS OR THE COMMENTARY AND ANALYSIS OF INFORMATION WHICH IS AVAILABLE IN THE PUBLIC DOMAIN. INDIVIDUALS ARE ADVISED TO CONSULT WITH THEIR FINANCIAL ADVISOR OR ACCOUNTANT FOR SPECIFIC ADVICE REGARDING THEIR INDIVIDUAL SITUATION.
