4 mistakes to avoid when getting a motorbike loan
The idea of buying a motorbike is pretty exciting, but financing the purchase of your dream bike is not as easy as it sounds. Even if you are willing to save up for several months or even years, there are some mistakes that you should avoid when buying your first motorbike. Here are 5 of the most common mistakes that you should avoid in order to get a motorbike loan.
Not comparing available financing options
There are loads of options when it comes to getting a motorbike loan, so doing your research is very important. You need to know what the interest rates are, how many years you are committed to the payments, and other important details. Doing so will allow you to find a loan that best suits your needs.
It’s a good idea to shop around online to see what kind of rates are out there, and do some research on rates specific to your new bike as well. For example, if you’re eyeing off a KTM, you might consider going to a KTM dealership or looking online for KTM finance options specific to that brand.
Not choosing the right amount for financing
This is very important because if you don’t choose the right amount to finance, you might not be able to pay off the payments on time. It is recommended to have a payment plan that allows you to afford the payment each month without any problems. Make sure you’re comfortable with both the monthly payment amount (including fees and charges) as well as the total amount that the loan will cost you.
Not knowing your credit score
Your credit score will help determine if you can get a motorbike loan or not, so it is important that you know what your current rating is before applying for financing. Talk with a financial expert and figure out what you can do to improve your credit rating so that you can qualify for lower interest rates. Though credit score isn’t the most important factor for every lender, in most cases the higher your score, the lower rates you’ll be able to access.
Not preparing for the ongoing costs
In addition to the cost of the bike itself (and the loan costs of interest and lender fees), it’s important to budget for the ongoing costs that are involved with owning a motorbike.They include the registration, insurance and maintenance costs as well as any other additional fees that your bank might charge you.
If you can avoid these 5 mistakes, then financing your motorbike purchase should be a lot easier for you. It’s important to know all of the details and make sure you understand how much money is involved before committing yourself to a loan.