FAQ

Interest rates on Secured Bike Loans vary with different lenders. The rates can be highly competitive as the lender has the motorcycle as the loan collateral. The rate is typically at a fixed rate.

A secured bike loan will include fees and charges from the lender. These include a Loan Establishment Fee and may include other charges. Fees can vary with lenders. Broker fees will also apply. All fees are detailed when a quote is requested.

A pre-approved loan is finance which has the application approved by a lender prior to applicant purchasing the motorcycle. The loan application is submitted with all the required documents and an estimate of the loan amount required to make the purchase. Lenders will want an indication of the details of the bike being considered. Specifically, the price range and whether it is new or used. Buyers can receive conditional approval with a confirmed borrowing limit and repayments based on current rates. Details are finalised after the purchase.

The minimum age to be eligible for secured motorcycle finance is 18 years. This is a stipulation in the Consumer Credit Laws which are regulated by ASIC. Lenders offering consumer loans must abide by ASIC regulations when approving finance.

Insurance is required with Secured Motorcycle Finance as an assurance to the lender. Should the motorcycle be critically damaged or written-off, lenders have the assurance that they can recoup monies owed via the borrower’s insurance claim. Comprehensive insurance must be current for the full term of the finance.

The difference between secured and unsecured loans is the collateral provided by the borrower against the funds being borrowed. Secured loans require collateral. This is usually provided with the goods being financed. Unsecured loans do not require collateral to be provided. With no collateral as the lender’s security, unsecured loans attract higher rates and may have maximum loan limits below the level of secured loans.

To be eligible for secured motorcycle finance, applicants must meet the Consumer Credit Law requirements and the individual lender’s criteria. Requirements include being employed or have an income stream from other sources, being over 18 years of age, meeting residency criteria, and providing personal financials and other information. Lender criteria may include loan limits, minimum credit scores, and income limits.

Secured Motorcycle Finance uses the machine being financed as the security or collateral for the loan. The security is the lender’s assurance. New motorcycles and quality used models are typically accepted as loan security. Most borrowers will not need to provide additional assets as loan collateral.

Loan collateral is an asset or assets which are offered by the borrower as security for finance extended by a lender. Collateral may be assets, real estate, cash or in some cases, a personal guarantee. The collateral may be the goods being financed as with secured format loans. Collateral requirements are determined by lenders when assessing finance applications.

Secured motorbike finance is secured when the lender accepts the machine being purchased as loan collateral. With the bike as collateral, the lender has the security that they will be able to recoup outstanding payments if the borrower defaults on the loan. Most new models and good quality second-hand models are readily accepted as finance security.