When you’ve decided to buy a new motorbike and you have your sights set on those winding mountain roads, the last thing you want is a finance rejection, especially when it could have been avoided.
Increase your chances of securing a motorbike loan with these helpful tips!
Tips to boost your loan worthiness
Shopping for a bike loan can be as daunting as choosing the right vehicle. As well as seeing who offers the best rates, it’s worth assessing how attractive you appear as a potential borrower. Showing that you are a good risk improves your approval chances and will save you time and money. A good risk will generally be offered a lower interest rate.
Here are some things to remember before approaching a credit provider:
Think carefully about the amount of money you wish to borrow. Choose a figure that is realistic and suits your means. New or near-new vehicles are considered a safer prospect by credit providers and can be used as security to support the loan. It is harder to secure a loan for an older vehicle because of its low resale value.
Credit providers prefer borrowers in stable employment. You will stand a better chance of obtaining approval if you can demonstrate uninterrupted employment over a long period of time. Your bank account and income should demonstrate the capacity to meet repayments. If you can show a savings track record, it greatly improves your position.
The assessment team will check your credit file and credit performance with previous credit providers, and if there are errors, ensure they are corrected before the approached credit provider does its own enquiry.
Shopping for the best deal
Bargaining for a better deal is not a sin. Just like the new business and used-car markets, finance is a competitive industry. Credit providers should fight for your business. There are many important questions to ask a financier before deciding on the best deal. Are there monthly admin fees? Ongoing bank fees? Penalties for early payout? Is the loan daily reducible? Can extra payments of any amount be made, and at any time?
- We’ve included a few more tips for getting a bike loan here.
We challenge you to ask these questions, so give us a call today on 1300 003 003.