Do I Want a Loan?
Motorbike loans are the most common form of motorbike finance, but this doesn’t necessarily mean that it is the right option for you. A loan will often be associated with a slightly higher monthly repayment compared to other options but you will retain ownership of the bike. While many banks and financial institutions may make it difficult to obtain approval for a motorbike loan, there are specialist brokers who can assist you in obtaining a great deal.
Is Leasing a Better Option?
Leasing has become increasingly popular in recent years. Leasing allows you to use the bike for a set period, paying a monthly fee. The main advantage of a lease is that any servicing and most repairs are covered by the lease. However, the bike is not your property and you may find that there are particularly stringent conditions to remain compliant with the lease. This could include a maximum number of kilometers on the odometer or a strict maintenance schedule at a specified dealership.
Do I Need a Deposit?
While you may already know which bike you wish to purchase and know the costs involved, you may wonder whether you need a deposit. While there are a number of lenders offering no deposit loan options, it can often be advantageous to have a deposit available. If you can offer a deposit it will mean that you will need to borrow less, reducing the amount of interest you will pay over the full term of the loan. However, you should also consider the registration, insurance and other on the road costs. It is far better to pay for these upfront rather than add them to the cost of the loan.
Should I Trade In?
If you already have a bike you are looking to replace, you may wonder if you should trade it in against the new bike. While many dealerships will often have deals available on trade ins, chances are you will be offered far less than privately selling the bike. If you are not relying on dealership finance and have already secured a deal through a broker, you may find that it is far more financially beneficial to advertise the old bike and sell it privately.
Can I Afford It?
The most important consideration for your motorbike finance is whether you can truly afford it. While you may have your heart set on a particular model, it is important to be realistic about whether you can afford to meet the repayments each and every month, in addition to paying for all the running costs and your usual monthly expenses. If you are unsure about the loan repayments, you may wish to consider extending the term of your loan. This will mean that you pay more in interest across the full term of the loan, it will reduce your monthly repayments to a more manageable level.
