If you travel throughout world by road frequently, you need the best motorbike. Whether weaving your way through traffic or opting for the shortest route to reach quickly, a motorbike fits the need.
While riding a motorbike may differ from a car, financing one is similar to car finance.
If you want a new or a used bike, you must ensure the best way to finance it. If you are unclear about the basics, the blog may help you. Getting a dream bike is no more challenging. Head on to the simplest route.
What are motorbike loans?
A motorbike loan is a personal loan one may use for buying a used or a new motorbike. You borrow some money to buy a bike and return the amount with interest costs after the agreed term. You can opt for secured or unsecured motorbike loans as per your finances.
For bad credit with limited financial backup, a secured motorbike loan could be helpful for instant approval. On secured motorbike loans, the motorbike act as collateral on the loan. If you fail to pay the loan in full, the lender may claim the motorbike legally.
You generally need a high credit score and income to qualify for an unsecured motorbike loan.
What can you use motorbike loans for?
You can use a motorbike loan to fund the best bike that suits your lifestyle and purpose. Here are some different bikes types that you can use the loan for. The loans are for learners and experienced riders. Here are some bikes that you can take a motorbike loan for bikes like:
- 125cc- It is the best option for the beginners
- Adventure- It is ideal for the one conducting frequent road trips
- Touring- If you travel long-distance often, the bike may help
- Light-weight bikes- typically ideal for beginners driving in urban cities
- Super sport bikes- Ideal for an aggressive motorbike rider
Who may qualify for the loan?
Vehicle finance agreements are available to anyone over 18 with permanent UK citizenship. Apart from this, you need a relevant driving license. You may qualify if you can afford the repayments alongside maintaining important expenses. Provide an active driving license, address proof, bank statements, and a valid debit card to qualify the loan.
You should not have bankruptcy status. Limited debts help get feasible terms on new loans. You may get the loan if your present income and finances meet the desired eligibility criteria.
How much will a motorbike loan cost?
Analyse and clear the terms before agreeing to them. The amount you get and the total loan costs depends on a few factors:
- The amount you need
- Credit score
- The pending debts and other liabilities
- Debt to income ratio
- Length of the agreement
In a long-term arrangement, you pay low monthly repayments. However, in that case, you pay more interest rate. While opting for a short loan length helps you clear the loan quickly and are much more affordable. Individuals with appreciative income can opt for a shorter term. It would be beneficial from the money-saving aspect.
Can you get the Motorbike finance on benefits?
No, you cannot solely rely on income from benefits to qualify for motorbike finance. If you are unemployed or leveraging any other benefits, you may not qualify. The lender may ask you to provide additional income sources. If you have a part-time income with which you can cover the asked repayment amount monthly, you may qualify.
If not, you need a guarantor or can enter into an agreement as a co-applicant. Having a guarantor implies that someone known can act as a security over the loan. He would pay the repayments on the borrower’s behalf if the later can’t. He would be solely responsible until the borrower grabs a regular job opportunity. Choose the right person as a guarantor. He can be your brother, mom, father, etc. No, friends cannot act as a guarantor here.
Clear the loan terms with the guarantor. Enquire whether he shares any queries or not. The guarantor may skip the agreement if you do not share a sound bond. Pay the dues to him after the loan agreement. Decide by when you can pay him in full. It would help him/her decide whether he should be a guarantor on the loan.
Advantages of the motorbike finance
Using a bike loan is more beneficial than using other ways to finance your motorbike purchase. While you may ask your friends and family for cash help, no one can finance the cost, most probably. Choose a person you can trust with your finance and meet your lifestyle goals. Here are some advantages of motorbike loans if you apply with us:
1) Legal owner of the bike
When you opt for a motorbike loan, you do not have to wait until you own the car. You can ride the car by just agreeing to the repayments. It is ideal for individuals who want to buy a car rather than just drive or meet a specific personal or business purpose.
2) Make additional payments
With a motorbike loan, you can pay the loan in advance. Most lenders allow you to overpay or prepay the loan without additional fees. It would reduce the overall interest rates. You can own the car forever. Check the feasibility. Not every lender provides flexibility to pay early. It may attract additional costs.
3) Fixed loan payments
The loan payments and interest rates stay fixed on these loans. The arrangement helps plan the repayments stress-free. Save a portion out of your income towards repayments. It would help avoid additional penalties.
Know the above things in detail before applying for a motorbike loan. Check whether you want to go for a secured or unsecured loan as per your circumstances. Identify the best used or new bike according to the purpose. Avoid borrowing unnecessarily. Make regular payments to clear the loan without losing your bike.