Imagine this: the sun is shining, the wind is in your hair, and you’re riding your brand-new motorbike down an open road. It sounds like a dream come true for many. But before you hit the road, you’ll need some financing for your new ride. Finding the best financing option helps you avoid paying hundreds of dollars in interest over time and guarantees maximum fun with your new ride. So, let’s get started on some tips that will assist you in navigating the financial highway.
1. Know Your Budget
Consider your financial condition and create a budget before considering financing options for a motorcycle purchase. Consider finance elements like your monthly income, costs, and other financial commitments. You can determine how much you can afford by creating a realistic budget. Ideally, the purchase should fit into your budget without pinching your pockets.
2. Shop Around for the Best Rates
The market is awash with motorcycles. California has the highest number of motorcycles in the country at an impressive 957,873 in 2021, according to the Insurance Institute for Highway Safety (IIHS). Once you have a clear idea of what you’re looking for, start browsing online and in-person at dealerships and private sellers.
Another great way to find deals is to attend motorcycle shows and events. These are great opportunities to connect with other riders and find a great deal on a used motorcycle. Be sure to ask questions and negotiate prices.
3. Research Lenders and Their Rates
You can obtain financing from a bank, a financial institution such as a broker, loan expert, credit union, building society, or a motorbike manufacturer. Today, most motorcycle manufacturers and dealer networks have financing options in their services. According to the Motorcycle Shippers, in 2017, motorcycle sales in the United States hit 472,000. Due to the massive demands of motorcycles, finding the best finance option isn’t an uphill task.
4. Take Note of Loan Periods
If the lending institution is willing to give you the loan, you must also decide how long you want the loan to last. A short period will have higher interest rates and, of course, while a more extended period will have lower interest rates. However, you should also ask how much the loan will cost. Also, remember that the average time someone owns a motorbike is five years, so you don’t want a loan that lasts longer than that.
5. Prioritise Safety and Insure Your Motorcycle
Even though owning a motorbike can be fun, one must consider the risks of riding one. The World Health Organisation data shows between 20 and 50 million people get nonfatal injuries from traffic crashes yearly. That’s why safety and insurance are essential before hitting the road. It ensures you and your motorcycle are covered in case of an accident so that you can focus on enjoying the ride. You can hit the road confidently, knowing you’ve made a wise choice that fits your financial goals and protects your overall well-being.
6. Review Your Credit Score
Most lenders consider motorcycle loans riskier than auto loans. For this reason, a good credit score is essential to securing motorcycle financing and getting the best motorcycle loan rate. You can ask for a credit score from reporting agencies like Transunion. The whole idea is to ensure the report is up to date, error-free, and there’s no incorrect information.
You can obtain excellent finance deals for your new motorcycle with due diligence and proactive decision-making. Conducting thorough research increases your chance of securing favorable loan terms. Stay within your budget, protect yourself with appropriate insurance coverage, and make informed choices to ensure a satisfying and financially responsible motorcycle purchase.