FAQ

The repayments on bike loans including the full purchase price are determined by the loan amount, interest rate and the term. Loans without a downpayment will have larger monthly payments than loans for less than the full purchase price.

Requesting a bike loan for the full purchase price may attract a higher interest rate. Lenders may assess these loans at a higher risk due to the higher loan amount.

No deposit motorcycle finance for used models will be subject to the lender’s assessment of the individual application. Lenders may be less willing to approve loans for full price of used models compared with approval for new models. The value of a used model may be assessed as less than the purchase price. Lenders will want to be assured that they will be able to recoup the full amount of outstanding payments should the borrower default on the loan.

Lenders will have their own criteria for approving no deposit motorcycle loans. Good credit scores and strong financials may be required. New model finance is more likely to be approved for the full purchase price than used motorbike loans.

Interest rates on no deposit bike finance may vary from rates for loans with a downpayment. Lenders consider the amount of the loan as a percentage of the price or value of the machine when making rate offers. A higher percentage, no deposit finance, may be seen as higher risk and attract a higher rate. All rates subject to individual application assessments and lender decisions.

It is normal practice for a dealer to request a deposit from a buyer. The deposit is required as confirmation that the buyer is proceeding. The dealer can then confidently start preparing the machine including obtaining registration. Where no deposit finance is being sought, the dealer deposit may be reimbursed back to the buyer at settlement or a downpayment take as a credit card guarantee.

Dealers will usually ask buyers to make a downpayment or deposit to confirm the purchase. This confirmation allows the dealer to proceed to prepare the machine for delivery. Where no deposit finance is approved, buyers may request the dealer to accept a ‘holding deposit’. The deposit held until the finance is settled. This may take the form of credit card details taken but the charge not processed on the card. Or any charge reimbursed on settlement.

Lenders do not stipulate that a deposit is required to be approved for a motorbike loan. The lender will stipulate the amount they are prepared to offer the buyer in a bike loan. Where that approved loan limit is less than the purchase price, the buyer will need to make up the difference with a downpayment or deposit.

Where dealer and delivery costs are included in the total purchase price and included on the dealer invoice, they are usually included in no deposit finance. Where extra charges are applied or accessories purchased after purchase and after finance settlement, they would not be included in the loan.

No deposit bike finance is securing a loan which covers 100% of the purchase price of the machine. The buyer is not required to make a deposit or downpayment. No deposit finance is subject to lender approval.