If you are planning to purchase a motorbike, but you need help with the financing aspect of the transaction, there is no shortage of companies that will line up to help you. Lending institutions large and small make handsome profits on the interest that is accrued from motorcycle loans, so it’s no surprise that they all want your business.
But how do you choose which one is best for you? Is it just as simple as finding the lender with the lowest Annual Percentage Rate (APR)? Raceway Motorcycles has overseen thousands of motorcycle sales transactions, so we know a thing or two about what makes for a good finance company. In this article, we’re explaining what to look for in one, so that you make the best decision for your financial situation.
Not Just APR
To address the first question about APR…no, this shouldn’t be the only factor you consider when shopping for a motorcycle loan provider. While you may end up saving money by choosing a lender with the lowest APR, there may be sacrifices you make in other areas. These areas can include:
- Administration of your loan involves clear communication from the lender about your payment schedule, anticipated pay-off date, late payment penalties, and more. If your loan isn’t well-administered, it won’t matter how low your APR is because interaction with the lender will be painfully difficult.
- Industry reputation. Well-respected lenders should always take precedence over fly-by-night or ‘recently incorporated’ lenders. This is because seasoned motorbike finance companies have more resources to offer, and they are typically more streamlined in their operation.
- Fees and penalties. A lower-quality lender may include in their monthly bills to you added fees or penalties that you may not even be aware of. Be sure to ask about these additional charges before entering into any contractual lending agreement. This goes for motorcycles as well as any other purchase you might make.
- Flexible payment options. When you designate which lender you want to work with, you’ll inevitably set up a payment plan. Your payments should be flexible in how they’re deducted and applied to your account, whether that’s a direct debit from your banking account or via check. Either way, you should have access to the payment option that works best for you.
- Upselling and cross-selling of other services. Unfortunately, many lenders begin to market their additional services to you after they’ve secured you as a customer. They may try to convince you to accept loans of other types, even though you may not have any interest in them. Be sure to select a lender that has a policy against this.
Because we want you to be completely satisfied with every aspect of your motorcycle buying experience, Raceway Motorcycles works with you every step of the way.
Questions? Contact Raceway Motorcycles
We look forward to outfitting you with the bike and all of the gear you need – financing is just one piece of the puzzle. If you have questions about financing your new motorbike purchase, contact us today on (03) 9351 0055 and we’ll get you sorted.