Securing bike loans: the basics
Motorbike financing and loans
Taking out a bike loan can be as costly as buying a new car, and sometimes as difficult to achieve as a good mortgage. Bike loans are in a world of their own, however, being very different to the loans possible with a car, or with any other kind of vehicle loan. One of the reasons why getting the right bike loan can be so difficult is due to the number of different loans available to someone who wants to buy a bike. Many of these loans are specialised to the world of bikes, and this means that you may never have seen them before. As motorbike loan companies often offer terms and conditions which are completely unique to their business, you may not know what to do in order to secure the loan. Working out the basics is therefore essential to securing the loan and getting to drive a bike home.
Types of bike loans
It is hard to define the many different types of bike loans available, since there are so many. The most basic, and the one which you will come across most often, is a loan offered by the company selling the bike. They don't run a lending business, but will broker a deal for you with a connected lending business. These are specialised lenders who know what they are doing, and can be perfect for the bike loan beginner.
Another type of loan is that offered by your bank. This will most likely be a unsecured loan, and you may have to repay the loan with a high rate of interest. You will also have to have a good credit rating, since bikes are seen as luxuries, and this means that banks will only lend to the lowest-risk category of borrower.
Self-secured loans are available to those who cannot get loans for the bike in another way. This is the least specialist type of loan, and may involve very high rates of interest, and a short period in which to pay back the loan. Most bike buyers do not take out these loans, but if you really need one, then a broker may be able to help you get a deal which doesn't take too much out of your monthly pay packet.
How to find the perfect loan for you
If you are considering buying a bike, then you may have already have been offered one type of loan already. This may be the right loan for you, but you may also want to consider other forms of loan, and find the one which is best for you. You should start by checking out your credit rating, to see whether you will be eligible for a personal loan from your bank. You may also want to talk to a specialist broker, who will help you to shorten the research time, and may be able to give you advice about the right type of lender for your motorbike loan, current interest rates, and the advantages of borrowing a loan with a particular lender.