Even Bruce Springsteen loves his motorcycle. While a car is a given, a motorcycle is an optional purchase desired by many. With motorcycles being financeable, it makes it easier to buy one. When taking out a motorcycle loan, you might encounter the usual motorcycle buying and financing mistakes. But there are fixes available to save you the trouble and heartaches later on.
Mistake No. 1: Shopping for Bike First, Loan Later
Looking for a motorbike first and then seeking financing later is a costly mistake. This approach leads to overspending, going beyond your budget for your dream bike. It puts you in a complicated situation as you will learn later on that you could only borrow this much.
Fix: Experts thus recommend to get pre-approved for a motorbike loan. Having a ballpark figure to work with makes it more efficient to shop within your budget. And you get to walk like a cash buyer, too.
Motorcycle Shopping Tips
When shopping for a motorcycle, consider these details:
- Type: Motorcycles come in abundance that it’s sometimes far easier to classify the rider. There is the standard motorbike, the cruiser, an array of sports bikes, dual sport, scooters, adventure tourers, the list goes on. But what should you look into are weight, nimbleness (ease of handling), comfort, and engine size if you are relatively new to biking.
- Age: You can finance a brand new or used motorcycle. Used motorcycles are more affordable; give it a couple of months and decide if you want a bigger, newer or better bike.
- Gear: Leather jacket, boots, helmets, gloves, and other protective gear go together with your motorcycle. Road crashes and accidents can happen so your health and safety when riding is a top priority.
Mistake No. 2: Financing Using Credit Cards
Taking on a large debt such as a motorcycle purchase is tricky when using credit cards. Sure, they are handy especially if you have not built a credit profile but can be costly at higher interest rates. You have to ensure that you regularly pay off your dues on time or your debt could balloon.
Fix: Check with banks and credit unions for motorbike loans. The process may be longer but it’s easier to keep your debt in check this way.
Mistake No. 3: Neglecting Your Motorcycle Loan
When you miss payments or ultimately default on your loan obligations, you run the risk of losing it. This happens when your motorcycle serves as collateral for the loan. Even if your motorcycle is not tied to your loan, the lender can seek legal remedies under the contract.
Fix: If you have problems with your motorcycle loan, don’t hesitate to contact your lender or loan servicer. Maybe you can work out a solution that would avoid repossession of the motorbike and modify your loan to make it manageable.
As they say, being forewarned is forearmed. Start shopping and comparing motorcycle loans!»