With so many makes, models and types of bikes on the market, finding one that’s suitable to your riding style and ability can be a challenging task. Many spend hours researching and comparing bikes to find one that’s suitable, but fail to spend time researching bike finance and loans. iCREDIT has put together a few motorbike loan approval tips to help gain a better answer with lenders.
Things to consider when applying for motorbike finance
Loan Amount – Think about how much you will be needing to purchase a bike. Choosing a loan amount that’s realistic to your needs and budget. This will allow the lenders to process your loan application correctly.
Bike Type – Lenders assess bike loans based on risk, meaning a newer model will be more of a safer prospect as they can take collateral or a security interest over the bike. This reduces the overall risk as they stand a higher chance of reselling the bike should the loan go bad. An older model bike, although can still be financed, is considered a higher risk as the resale value is much lower. You also stand to receive a lower interest rate on a newer model, than an older one from the banks.
Credit Check – Before applying, check your credit file as this will show if there is any unforseen debts that are owing to creditors. This will give you time to correct any problems that may show. Your Finance Broker will be able to provide a copy of your credit report, prior to submitting a motorbike loan to the banks.
Asset Position – When applying for motorbike loans and finance, you need to be thorough in noting your assets, bank balances, cash on hand and investments to assist with the application process. This will allow the lender to make a better decision based on your overall profile.
Employment– Lenders love to see employment and residence stability. If you can demonstrate uninterrupted employment and residence history, you stand a higher chance of receiving a better answer. Banks like to know where the bike is situated should a problem occur and showing transient employment and residence history adds risk to the transaction.
Lender – Compare, Compare, Compare is what you need to do when looking for a bike loan. If you have approached a bank or lender directly, with all the excitement of getting your new bike, don’t settle for the first answer you receive without doing some research into the loan product. Ask the lender what monthly administration fees they may have? early payout penalties? ongoing fees? ability to repay sooner? and what type of interest rate loan are they providing? It’s easy to look at the loan repayment, knowing you can afford it, without looking at what other costs may be involved throughout the loan term. The finance consultants at iCREDIT know banking criteria and can help you compare and choose a loan suitable to your budget and needs.
Typical documents to assist with Motorbike Loans and Finance
Tax returns or Payslips
Current or Previous Credit Proof
Suitable Riding Licence
iCREDIT can help you find, compare and choose motorbike loans and finance suitable to your budget and riding lifestyle.
Contact us on 1300 350 118 or admin@icredit.net.au to discuss your bike loan and finance comparison needs.
This article contains information on motorbike loan approval tips.
This information provided is a guide only. It should not be treated as financial advice and does not take into account your personal circumstances, financial needs or loan requirements. If you have any specific questions about financial matters or government legislation, you should consult an appropriately qualified professional or government department. iCREDIT endeavours to ensure the information is accurate at time of publication, however cannot guarantee the ongoing accuracy this information.