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Motorbike Financing

If you are looking for excellent motorbike finance, BIB Finance can provide you with all the advice you need.

2019-02-01


3 Common Mistakes to Avoid When Applying for Motorbike Finance

If you are a motorbike enthusiast and ready to purchase one, you will probably need motorbike finance. Motorbikes can be very expensive and, depending on the type of bike you have in mind, you may have to come up with quite a bit of cash. Some motorbikes cost hundreds of thousands of rand, which can make meeting the financial obligation challenging, and which means you need access to reliable motorbike finance. There are, however, some common mistakes people make when they apply for motorbike finance. In order to make a more informed decision about obtaining finance, it is best to know about the common pitfalls before you apply for finance. Common mistakes people make when taking out your finance include:

1. Not knowing the price range and budget: It is easy to get excited about the purchase of a new motorcycle when you see one online or in a showroom. Sometimes, you are so smitten with a particular bike that it can overwhelm your sense of financial responsibility. It is important that you know how much you can reasonably spend, and you can only do this with a thorough study of your current financial situation when applying for your finance. Applying for a loan before you go out to view motorcycles will steer you in the right direction in terms of your budget, which means that you are less likely to get carried away and you will make more sensible decisions when it comes to deciding on the bike to buy. It will also help you resist keen salespeople trying to get you to purchase something that is out of your price range.

2. Choosing unsuitable motorbike finance: Once you realise you need a motorcycle loan, you may be tempted to take just any deal that is on the table at the time. The truth is that you need to do research before committing to the terms of a loan. You need to do your homework and spend time evaluating the loans that are available to you and to get the deals that suit your pocket the best. Sometimes, financial-services providers will lure you with fixed-interest loans, but only for a limited period, and after this the interest may escalate. This will increase your instalments as well. It is even possible to buy your motorcycle on your credit card with promises of low interest, but you have to remember that if you do not pay off the entire balance on your credit card every month, your interest rate can increase significantly, leaving you out of pocket by much more than you anticipated.

3. Purchasing a “bad” bike: Most people purchase a motorbike for transportation and others purchase a bike for enjoyment only. It does not matter what your reason is for purchasing a bike, you need to ensure that you have something that does not depreciate too fast. You have to take care to ensure that the motorcycle you choose does not have any accident damage and is completely roadworthy. Salesmen may try to convince you that you are making a good choice, but insist on documentation to prove that your purchase is “clean” and that there is no damage to the bike that will cause problems later on. Worst of all is purchasing a stolen motorcycle! If this happens, you will still be required to stick to the motorbike finance payments you agreed to, but in the meantime your motorbike may be confiscated, returned to its owner, or even destroyed! This will leave you with many payments due and absolutely nothing to show for them.

If you are looking for excellent motorbike finance, BIB Finance can provide you with all the advice you need. We specialise in transparent and honourable finance for bikes, boats, cars and bakkies. We ensure that our clients understand the financial obligations of taking out motorbike finance with us and we do not take any shortcuts. If you are looking for motorbike finance, we are the people to contact. We will make sure that you remain within your budget and, in the process, provide you with the finance you need for buying your dream machine. Give our team a call today!