Bike

Loans

Bikes are a common means of transportation in Australia. They afford riders some level of freedom and fresh air too. While there are varieties of bikes to choose from, getting one may seem expensive. Motorbikes cost thousands of dollars. Significantly, classy and high range bikes could cost up to $100,000. If you desire to get a bike and can’t pay the full sum, you may want to take a motorbike loan.

How Does a Bike Loan Work?

Generally, bike loans are forms of personal loans. With a bike loan, a lender borrows you money to assist you in purchasing your motorcycle. As with other personal loans, a motorbike loan requires that you pay the interest along with the principal. The good thing with bike loans it that they have fixed interest rates. That way, your repayment amount is set.

You can determine your repayment period with a bike loan. These loan periods may vary. However, the maximum loan period is usually 60 months. Also, the faster you repay your bike loan, the lower the total interest you will pay on loan.

Why Should You Choose a Bike Loan?

Firstly, bike loans will assist you in purchasing a bike. An average motorbike may cost you thousands of dollars. Thus, you might need help getting one, and bike loans are just what you need. Also, motorbike loans present a more viable option for purchasing motorcycles than saving up. 

Motorbike loans are also very flexible. With a bike loan, you can trade your old bike to purchase a new one and reduce your borrow amount. 

Features of a Bike Loan

Bike loans are very similar to personal loans and vehicle loans. To determine which motorbike loan you should get, here are elements you should consider:

Advertised rate

The advertised rate is an extra amount you pay on your total

Fees

These fees may be advance payments, redraw fees, or early exit penalties.

Extra repayment

Extra repayment involves paying more money than required under your monthly payment. You can thus pay your bike loan sooner and with less interest rate.

Redraw facility

If you over-service your loan, redraw facilities help you get back your extra repayments.

Comparison rate

This rate is an approximate value of the total costs and interests of the loan.

Finance Options for Bike Loans

Secured

Loans

These are loans that require you to use an asset as collateral before you get a loan. You could use your house, gadget, or other property with proportional value as collateral. Alternatively, some secured loans could require a guarantor. 

Unsecured

Loans

These loans do not need collaterals or guarantors before you can get them. Unsecured loans may require special conditions before you apply. Also, the interest rates of unsecured loans are relatively higher.

Hire

Purchase

You can get a hire purchase option if you don’t have a collateral or you are ineligible for an unsecured loan. You can then pay in instalments while using the bike. The motorcycle becomes yours after your payment is complete.