Buying a new motorcycle or car? Then that is also the right time to take out a good and suitable loan. This means a loan that is not too expensive. The interest rate is low. A motorcycle loan is part of the purchase of a new motorcycle. Pay attention to the monthly costs. These are a lot lower with a revolving credit for the motorcycle than with a personal loan. I will give you an example calculation of the costs of a loan. So don’t pay too much for your loan and opt for a declining credit. Your income determines whether there is a credit limit. Tip: Negotiate the price of the motorcycle first and then negotiate the motorcycle loan. This way you prevent a cheap loan from being made expensive because you do not get a discount on the price of the motorcycle or you do not get enough for your traded-in motorcycle. Also check how long your engine will last so that you can adjust the term of the loan accordingly.
How to take out a motorcycle loan or car loan
Just like the car loan for a car, there are special motorcycle loans that allow you to buy the motorcycle on installments. The motorcycle dealer will probably have a good motorcycle loan on offer without you having to make a down payment, but there are also other options.
Financing without a dealer
But there are all kinds of ways to arrange financing. Even without the dealer. This means that you do not necessarily have to arrange financing for the motorcycle with the seller. It is possible, but not necessary. The motorcycle serves as collateral for the motorcycle loan from the dealer. This means that as long as the engine has not yet been fully paid back, the dealer can claim the engine. Many do not like this and look for other financing. Whatever you do, always ask what the dealer’s terms are, what it will cost you monthly and compare this with the results you can find on the internet. Then you can much more easily choose what the best loan is for you and perhaps even haggle with the seller or still get a cheaper loan from him. This makes the motorcycle loan an affordable loan. Agree in what installments you will pay. This can be monthly, quarterly or semi-annually.
A personal loan to pay for the motorcycle is cheaper
Otherwise, opt for a personal loan from a bank or another credit provider, for example. You pay the interest and repayments monthly, without your motorcycle being the collateral. This way the loan expires slowly. The nice thing about this form of borrowing is that the motorcycle is fully paid off after a number of years. You know in advance when that will be and you know in advance what the engine will cost you monthly. You decide how long you want to take to pay off the motorcycle. It is wiser not to choose too long a term, because an engine does not last forever, but by choosing a longer term for the loan you can ensure that the loan becomes affordable. You can tailor the loan to your person.
What determines the amount of the monthly costs?
The monthly costs are determined by the amount of the loan, the repayment you have to pay, the term of the loan and of course the interest. Once you know how much the motorcycle will cost, you can use various loan provider sites to calculate whether a loan for the motorcycle is affordable for you. By comparing the loans, you can easily select a few lenders who offer an attractive loan. If it is all a bit expensive, you still have two instruments at your disposal, namely the price of the engine and the duration of the loan. You can fit and measure in no time.
Request a quote for a motorcycle loan
Always request multiple price quotes for a motorcycle loan, stating how much you can borrow, the term of the loan, the type of motorcycle and the cc and whether it is a new motorcycle or a second-hand motorcycle. Some banks lend up to 110% of the price of the motorcycle. More than you need, but at the same time you have some extra money on hand.
Take out revolving credit for the motorcycle
Sometimes you do not want to try and measure, but take out a larger loan, from which you can also pay for the motorcycle. In that case, it is best to opt for a revolving credit. This credit has the disadvantage that the interest rate is variable, but the major advantage is that a much longer term is used, because you repay less. This can also be a useful way to keep the motorcycle loan affordable.
example calculation of the monthly costs of a motorcycle loan
A personal loan of 40,000 euros could cost roughly 700 euros monthly, while with a revolving credit it would be more like 400 euros. That makes a big difference in costs.
Conclusion on taking out a motorcycle loan
A motorcycle is truly a pleasure. The true enthusiast knows that and you don’t want to worry unnecessarily about financing. Then take a look at the options for a cheap motorcycle loan on the internet and take into account the tips I gave you. This way you can take out the cheapest loan for your motorcycle.
- Borrow money from Alpha Credit Netherlands