You want to buy a motorcycle, but you do not have the necessary amount to make your purchase? Do not panic ! You have the possibility to use a loan to finance it. Among the possible ways of financing for this type of vehicle, you will find without problem the one which suits you best and which corresponds to your personal situation.
Ask yourself the right questions before choosing a loan
As before any credit underwriting, it is always best to ask the right questions. In a way, you evaluate if your file is admissible or not. First of all, it is important to calculate your current credits, if you have any.
This allows you to calculate your repayment capabilities as accurately as possible. Be aware that the monthly payments of your loans must not exceed 33% of your income. Beyond that, the bank or credit institution considers that you no longer have enough living to cover all your expenses.
You must consider the total costs you incur in this purchase. For example, consider the amount of compulsory insurance, the cost of maintenance, fuel, etc.
Finally, you must also take into account the total amount of credit you will have to repay. To do this, add to the total amount the interest rate charged by your bank or credit institution.
The different motorcycle credits
Among the most common forms of motorcycle credits, you find the revolving motorcycle credit, the personal loan allocated to the purchase of your motorcycle and the motorcycle credit itself. You have to know these different possibilities to choose the one you want.
Different forms of credit in retail:
- The motorcycle revolving credit, also called revolving credit: This is probably the easiest to obtain, but it has a major disadvantage that is due to its very high interest rates compared to a conventional credit. It is quite little used and recommended. It is based on the following operation. The bank or lending institution lends you a certain amount of money that you use as you wish. That’s why he can be assigned to pay for your bike. As you adjust the monthly payments, your money pool is rebuilt and the amount thus acquired is available again for a possible purchase. Warning: the danger is related to the infernal circle in which you carry this type of credit. It is indeed tempting to spend the money available permanently.
- The personal loan motorcycle: in fact the personal loan is not necessarily dedicated to the purchase of a motorcycle, but you can use it for this purpose. The principle of this type of loan is to lend you a sum of money that allows you to spend it as you wish without having to justify its use. Interest rates are lower than for revolving credit. The amount can not exceed 75,000 euros and it can be a little more difficult to obtain. It is less risky than the revolving loan.
- Motorcycle credit can only be used for the purchase of your two-wheelers. It is indeed assigned to a specific purchase. You can not borrow more than 75,000 euros. Refunding only starts when your car is delivered. Interest rates can be more interesting. To find the best rate, you have to compare the latest offers. Also, be aware that your personal situation is relevant to rate appraisal.
What about motorcycle leasing?
Motorcycle leasing and especially Lease with Purchase Option is another proposal that can help finance the purchase of your motorcycle. This offer is based on the following principle: the organization that lends you the money to finance your purchase is also the one that acquires the bike.
He then rents it to you by fixing a monthly rent. Once the rental period has elapsed, you have the choice between changing your motorcycle or buying it back at the price that was defined in the contract minus the payments you have already made.
This is a very good option if you want to change vehicles often or just if you do not have the ability to borrow easily. Attention: the rents must be paid as the monthly payments. We must be careful about the budget you have to do it in the best conditions.
It should also be known that the overall cost of this operation is higher than that of a conventional credit and a fortiori a cash purchase.
Find the best credit rate
In the motorcycle credit, the main difficulty lies in finding the best credit rate so that the total cost is not too high. The conditions and rates differ depending on the banks and the financial institutions, but also according to your file and your situation.
The best is to make a comparison with different banks and financial institutions. You can do this from an online comparator or by going to the physical banks.
We must then look carefully at what is proposed in terms of terms, of course, but also in terms of rates and interest rates. Pay attention to all clauses before committing yourself. If you are doing an online simulation, you will need to provide some details to send you offers matching your profile.