How to finance a motorcycle
Financing a motorcycle is almost the same thing as financing a car. In financing, there are some tips or steps to follow. People thinks financing a motorcycle can be very difficult but the only differences between car financing and motorcycle financing is the length of term and the interest rate. Motorcycle financing can take as long as up to 3 years while car is just a matter of one to five years.
READ: Can you trade in a financed car?
While the interest rate on car be very high, motorcycle has its interest rate to be low and this is because of the price and value difference. Financing a motorcycle can look very serious and having your own motorcycle can be exhilarating that is thrilling.
Steps in to take in financing a motorcycle.
- Know the price of a motorcycle. Before you can plan having a motorcycle or financing it, you must know the price of the motorcycle. There are ways of getting the price of motorcycle you want. You can browse online or go to any motorcycle dealer to get the price of different types of motorcycle. Motorcycles vary from one another as their maker sizes, model and shape are very different. A company of motorcycle might have their lowest price for motorcycle to be $40,000 while another company might have their lowest price for their motorcycle to be $50,000. This two motorcycle can be of same values but has different prices due to the type of maker.
- Check your credit record. When you have found out the prices of different types of motorcycle available, you should check your credit record if you have a very good and high credit score. If your credit score is high enough, you might need to turn to the bank to lend you money to buy the motorcycle.
READ: Who benefited from the reconstruction finance corporation?
- Go for interest rate compare. You should compare the interest rate of lenders before you turn to them for money lending. Different lender with different interest rate so you should definitely check out for the lender that has the lowest interest rate. You should go for the one that will be convenient and easy to pay back. There are actually two types of the interest rate base on time. These are the fixed interest rate and the variable interest rate. The variable interest rate has the parent changed later in which low interest rate might be paid at first and higher interest rate towards the end of the financing due time.
- Consider the down payment. You should know that when you are financing a bike, you definitely will have to be making down payment. If your down payment is high, you might need to reconsider. Although the time for financing a motorcycle can take long but might not be finished pay before the due time.
- The tax and other fees to be paid. Check the tax rate on the motorcycle and other fees like the amount of buying the motorcycle body parts or the amount of maintaining it. This is so because, when the fees are much, it might be difficult to get the down payment on the motorcycle made.
- Get the necessary documents to the seller or dealer. When you want to finalize the deal with the motorcycle dealer, you should get all the necessary documents ready and presented to the dealer. The documents show the credit sale which is to be signed by the lender.
- Make payment and sign the documents. The buyer and the seller could make an agreement on how much to be paid and how the payment should be made if it’s by cash or by bank transfer. You should make the payment and sign every necessary documents while the dealer gives you the motorcycle particulars.
READ: Who finances mobile homes?
- Get the motorcycle registered with Motor Vehicle Department. You should get the vehicle registered with MVD so as to grant you free access of using the motorcycle and so as to be very easy to locate the vehicle in case there is any theft.
- Get the motorcycle insured. You should insure your vehicle at any good insurance company near you. This is so to get the risk on the vehicle covered.
Get your motorcycle, start financing and get ready to hit the road without any fear of losing your motorcycle.