buying your first bike or are upgrading to a bigger and better model, it's
important to get the best possible finance deal in place. Here is a look at the
three most popular options so you can make the best choice.
Do Your Homework
important that you spend nearly as much time researching your financial options
as you do choosing the perfect motorbike. Raising the cash for a new bike is a
little like securing the money for a car – buy you may find it slightly more
difficult. Motorbikes are still considered 'high risk' by many lenders, despite
their popularity, so you will have to shop around to get the best deal. A good
place to start is to visit the Money Advice Service's website. It offers free,
unbiased, independent advice on all aspects of finance, including establishing
your credit rating.
A Personal Loan
probably the most popular method of buying a bike. It's ideal if you don't have
the cash for an up-front deposit. Apply to your bank or building society to
borrow a set amount – they'll perform a credit check and establish how much
they are willing to lend. The loan will be repayable over a set period from one
to five years with monthly repayments. Ask about the APR, which is the amount
of interest you will repay. Investigate which bank will offer you the lowest
buying your bike from a dealer, you may be offered a hire-purchase agreement.
This involves the dealer arranging finance on the bike from a third-party
finance company. Look for deals with as low an interest rate as possible. You
will need to put down a substantial deposit but, with a little negotiation on
your part, you can usually reduce this figure. A hire-purchase deal is called a
secured loan because the lender retains ownership of the bike until you have
finished paying the entire amount off. And if you miss payments, they may
repossess it. If you're buying a second-hand bike privately, perhaps because
you've already made to decision to sell yours through a company which tells you
buy any bike, make sure you check that the seller does not owe any
money to a hire-purchase company. A simple hire-purchase information check
which costs less than 20 GBP will show you the status of the bike. This way it
won't be repossessed from you because of money owed by the previous owner.
Unions have been in the news recently, as an alternative to pay-day loan
companies. They are usually small, not-for-profit financial organisations which
are run by and on behalf of the members. They offer loans and operate on an
ethical basis and do not charge extortionate interest rates. You'll need to
join a credit union and open an account with them before you'll be able to
borrow money from them.
little careful research and planning, you'll be sure to find the perfect
finance for your bike.