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Considerations when comparing motorcycle loans
Applying for a motorbike loan is easy in today’s world as all banks and financial institutions out there are ready to give a loan to you to make you their customer and increase their clientele to stay in the race. Still, getting approval for your loan is not an easy matter, and several factors are considered by the banks to prove your eligibility. Under such conditions, you need to care for all the criteria and keep them in proper shape to get your loan approved quickly.
Amount of risk
When banks and financial institutions lend you their money to meet your need, they are putting their money at risk by giving it to a person they do not know well. All they can do is to judge your affordability and intention with the help of the documents that you provide to them. It is true that papers cannot say all about a person’s character. But they can at least judge your financial strength and your behavioural pattern and calculate the potential of getting their money back on time. Therefore, your credit rating is crucial in this respect to show the amount of risk involved.
Be realistic while borrowing for a motorbike
Supposing that you have a high credibility and scope for repaying a loan, it is utterly unwise to borrow money more than you require since you are getting it. Remember, the lenders out there are not doing you any favour as they are into business and want to earn a profit, just like any other business, regarding interest on the amount lent. More the number means more interest and therefore an enormous monthly bill. Choose an amount to borrow which is realistic and would suit your need as well. This way you would not face any hardship while repaying.
Preference by lenders
There are a few borrowers that the banks prefer to lend their money like those who are in stable employment. If you can portray through your authentic documents that you have continuous employment for a long time, you stand a better chance of getting approved for a motorcycle loan rather than the one who has been a regular job changer. Moreover, lenders also prefer a loan application for a newer bike rather than for a sued one as the new bike would be a better collateral having more resale value than an old and used bike.
Check credit record
Credit history is the most important thing to get a loan approved, and therefore you should check your credit report before applying for a loan and make amendments for any errors that may be in there. If you can show your savings record, it would be an added benefit to demonstrate your capacity to pay back along with your income document.
The finance industry is also competitive like any other, and therefore you should bargain for the best loan offer. Make sure that no additional or hidden fees added while comparing interest rates, so that you don’t end up paying more. Go for those lenders who are known in the market for their competitive rate and best of services to avoid unwanted surprises.
Ask questions to the lender
When you want to make the best deal, there are many things that you should ask the lender just to be safe and sure. Ask about the administration fees, if any, along with other bank fees and charges. Also, asking whether the loan is reducible daily or not, can extra payments be made at any time and what penal charges are there for it and much more. A reliable and trustworthy lender would not shy away to answer to such questions just to do business with you.
Shop around for your bike
Buying the best bike is also required when you want to take a loan as different bikes have a different sale and resale value and may also affect the potential for your credit approval. Therefore, you should shop around for the best bike and check out personally with more than one dealer to compare the price, service, and functionality of the bikes as well. There are factory backed dealers in Australia who offer major brands of quality bikes, but you can also check it out from several bike only websites and motorcycle press as well. This would help you to take an educated decision.
Test ride and negotiate
Once you have selected a motorcycle model, it is always better to test ride it, to know about the functionality first hand. You may also hire one and ride throughout the weekend as well just like BMW does from some of the best dealers in Australia. To make sure and be happy, you should at least ride for half an hour and on roads having different terrains. Negotiate on the price as everything has a bargaining capacity. You can also use the net to mail your specific requirements to dealers and find out their price as well.