Many riders looking to upgrade their motorcycle and those buying their very first bike will require a motorbike loan. Specifically, the cheapest motorbike loan they can secure with monthly repayments that won’t mean compromising on life’s other wants and needs. Motorbike loans are not totally generic in interest rate and conditions. Motorbike loan interest rates vary across the lender market and buyers can take steps and use expert services to ensure they are offered a better rate and loan.
The interest rate is critical to the cost of any loan and the repayments. Interest rates on motorbike finance can be impacted by Reserve Bank (RBA) rate increases and decreases. The outlook for RBA decisions in 2023 are somewhat mixed. The RBA Board has stated that halting rate increases as well as returning to those 0.5% increases have not been discounted. Each monthly decision is made after assessing the available data.
Critical to motorbike loan affordability is the other expenses faced by buyers. Inflation remains high as consumers face price rises in many areas. When taking on a new motorbike loan, buyers will no doubt be wanting to keep the monthly repayments to a workable amount. As motorbike finance specialists, we outline some of the considerations for buyers prior to purchase and prior to making a motorbike loan application.
Type and Price of the Motorbike
When it comes to which bike to buy, buyers can make the most of the available resources to make their selection. Read the blogs and reviews at sites such as bikesales for what are the best motorcycles on the market. Their experts review new models and have recently announced their decisions for the best motorbikes for 2022.
Knowing what type of rider you are can assist in bike selection. New riders will need to look to the LAMS approved models which most manufacturers include in their range.
The price of the bike will be central to the loan, especially if no deposit finance is preferred. This includes the full purchase price in the total loan amount. While some buyers will have an instinctive feeling around what they can afford, others may struggle to convert advertised prices to motorbike loan monthly repayments.
To assist in buying a bike that suits the loan budget there are a number of considerations and resources available. First, use our Motorbike Finance Calculator. This is a free online calculator which provides rough repayment estimates on any motorbike price. The results are only estimates but will provide a ballpark to affordability and assist in possibly discounting some models.
Secondly, consider a pre-approved motorbike loan. Get the loan confirmed before committing to a particular purchase. It makes a lot of sense and it is no different from applying for a motorbike loan after the sales deal has been done.
The benefits of pre-approved finance include:- knowing well ahead the exact monthly repayments; knowing the individual is approved for the amount they want for their loan, ie the motorbike price; avoiding any post-purchase panic to get finance and potentially agreeing to a higher priced loan; and being able to search for a new ride that is priced in the bracket that suits the finance objectives.
Improving Cheaper Loan Prospects
Motorbike loan interest rates do vary depending on the bank or finance company and on the individual aspects of the loan applicant themselves. The rates that most lenders will generally advertise will be their lowest possible interest rate. That will be for loans on new not used motorbikes and good credit score applications. So, if considering purchasing a second-hand motorbike, it may be wise to speak to us about pre-approved finance so you know exactly what the rate and loan will be.
In regard to the credit score and creditworthiness, consider improving both the credit score and the personal finances before applying for new loans. Refer to Moneysmart for directions on how to fix issues on a credit report and if at all possible, finalise any other debts such as consumer loans and credit cards.
Be mindful that motorbike loans come under the Consumer Finance Laws as regulated by ASIC so lenders including Jade Bike Loans, must abide by the regulations and guidelines.
Repayments are calculated based on the total loan amount, the interest rate and the loan term. By changing any of these values will alter the repayments. Where lower repayments may mean a cheaper loan, consider paying a deposit to reduce the loan amount or requesting a longer loan term.
These matters will be subject to lender approval but are included in the negotiations provided by Jade Bike Loans consultants.
Take Advantage of Expert Services
Buyers will no doubt head to experts such as bikesales for assistance with make and model selection. When it comes to the motorbike loan, why not use the same strategy – head to the experts in motorcycle finance. There are other, often far more attractive, options to the usual bank and finance companies for sourcing a motorbike loan. Our broker style lender services are available to all bike buyers and provide access to a large number of lenders and expertise in negotiating and sourcing cheaper loans.
When applying directly to a finance company, bank or using the manufacturer’s finance option, buyers will have little, if any, bargaining power. When using our services, buyers enjoy the strength of our bargaining power with our lenders to achieve better rates and cheaper loans.
Doing a little bit of prep before launching into the motorcycle purchase and finance can be wise and pay off in many ways.
For assistance in sourcing a cheaper 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.
