Motorcycles are one of the most popular types of transportation in the world. This is because they’re convenient, versatile, and fuel-efficient. Motorcycle finance can be very attractive for people who don’t have enough cash upfront but still want to buy a bike right away. This article will discuss what motorcycle finance is, how it works, and tips that might increase your chances of being approved by a lender.
What is a motorcycle finance agreement?
The terms of motorcycle financing typically last anywhere between 12 to 48 months (2 – 4 years). This means that you’ll have to make monthly instalment payments in addition to paying off the entire loan amount over time. Most lenders offer leasing or loan agreements for motorcycles. If you’re not familiar with these terms, leasing refers to a situation where you have the option to purchase your motorcycle after all monthly payments are completed. On the other hand, a loan is simply buying your motorcycle through instalments.
How is a motorcycle financed?
In the simplest terms, when you buy a motorcycle on finance, you can use it as security in your loan application. This means that if you cannot pay back what you owe for whatever reason, the lender has the right to claim ownership of your bike until you’re able to repay your debt in full.
What information do lenders need to approve you?
The most important thing that lenders look for in a new client is excellent credit. This means no missed payments on any loans or credit cards and the ability to make timely instalments without paying late fees or interest payments. For those with bad credit, there are other options like entering a creditor’s agreement where you agree to make monthly instalment payments until you’ve paid off the entire loan amount. In addition to good credit, lenders also look for a source of income and collateral such as a vehicle title or some other form of equity.
What are some tips to get approved?
If you want to increase your chances of getting approved by a lender, consider applying for motorcycle financing before you start shopping. This is because most lenders will only let you finance a new bike if you have already been pre-approved. In addition, it’s best to stick with reputable and well-known motorcycle manufacturers that offer incentives and warranties along with their bikes.
Motorcycle financing is an attractive option for people who don’t have the money upfront and want to pay off their bikes over time. Make sure you shop around before finalising a deal, as some lenders offer better terms than others.
