3 Steps to Finding the Right Motorbike Finance for You

Many people dream of owning a motorbike. Whether it is for primary transport or as a hobby over weekends or after hours, people love the freedom a bike provides. Mid-range motorcycles are often cheaper than cars to maintain and they use less fuel. They are also easier to use in cities where heavy traffic can slow down the trip to work. Using a motorbike can provide freedom of movement, even during heavy traffic, and a quicker journey compared to using a car. In South Africa in particular, we have exceptionally good weather and stunning scenery to discover via motorcycle. There is just something about being outdoors and exploring new roads that would not be possible in a normal vehicle. Challenging off-road tracks are often best enjoyed on an off-road bike. The feeling of the wind on your face and being outside cannot be compared with being in a car, and as a result, there are a lot of motorcycle enthusiasts out there who are looking for their dream bikes. 

However, motorbikes are not cheap and the more expensive ones can cost hundreds of thousands of rands. Putting down the full cash amount for such an expensive item is virtually impossible for most people and this is why they make use of motorbike finance. But is it easy to find motorbike finance that fits your pocket? Motorbike owners do not want to run the risk of the bike being repossessed due to non-payment, and because a solid credit rating is very important nowadays. Not meeting payments can result in a downgraded credit score that will prevent you from obtaining credit in future. 

Here are a few things to remember when you are looking for motorbike finance:

1. Know what you can afford: A motorcycle may be a necessity or an expensive hobby. Either way, you have to be able to meet your monthly repayment obligations. This means that you have to sit down and take a serious look at the state of your finances. Remember that you will have to meet various cost obligations. First, you will probably need to put down some form of deposit. Second, you will need to keep up with the monthly repayments, so they have to be attainable. Third, if you are financing your bike, insurance cover is compulsory. When talking to the consultant of your financing company, make sure you are aware of all the hidden and/or compulsory costs. There are also other expenses such as maintenance, new tyres, repairs, and petrol to consider. Before going out and getting all excited about the latest model, ensure that you can afford it. In order to avoid overspending, set a budget in a certain price range and look only at the bikes that fall within that price range.
2. Check out your credit score: The amount of disposable income you have available every month and your credit score are two entirely different things. In this country, your credit score has to be sound in order to qualify for any sort of credit. Get your credit score from the credit bureaux and make sure that there are no outstanding money or debts that you are unaware of. If there are, clear them first. You will then have a much better chance of being approved for motorbike finance when you apply for it.
3. Be mindful of the fine print: There are many tricks of the trade that you could fall victim to during the process of looking for motorbike finance. A trick often used to make the monthly instalments affordable is to add a balloon payment to the repayment contract. This will often allow you to purchase a motorbike with a very small or even no deposit and very affordable monthly repayments. However, a balloon payment of 30% or more of the value of the bike then becomes payable in cash at the end of the term. If you cannot afford to pay it, you must give back the bike or refinance the outstanding amount.

If you are looking for honest and no-frills motorbike finance that will not cost you the earth, BIB Finance are always on standby to help you to pay for your dream bike! Give us a call today to find out more.