Life’s too short to pay too much for things, so why is motorcycle finance any different? The bike loan market is a competitive market. This is great for people buying a motorbike; the free market forces lenders to make their loans as enticing as possible. But how can you use that to your advantage? How can you convince lenders to lower their rates even further based on how they judge risk?
Grab a hold of your credit history
The same mechanism that allows banks, lenders and even telephone providers to check your credit history is available to you. Best of all, you can get a copy of your credit history free. Check the ASIC MoneySmart website for details. Why would you need to see your credit history? Because this will give you a better understanding of how a lender assesses your risk profile. Most lenders base their judgment on your credit history. A cleaner credit history means better choices and lower rates are made available to you. Credit histories with incorrect entries (like paid off defaults or bills) stick around and cost you money. You have to take it up with the providers in question – no one will do it for you! Read our approval tips for bad credit bike finance here.
Stable income and residential history
If you can prove you have stable employment or income (if you’re self-employed, it’s a little tougher but completely doable) and a good residential history, that’s music to a lender’s ears.
You need a budget
Selling yourself as a good borrower is important. It’s important to keep within your means. If you have a modest income and figure you’ll get a loan to pay for a Jack Armstrong designed Harley (that’s $1 million USD, by the by) you’ll have another thing coming. Find a motorbike that suits your lifestyle and won’t cause you financial discomfort. Find out how much you can afford via our comprehensive bike loan calculator.
Look for newer bikes
One more thing that will work for you is finding a new bike to buy. Lenders like approving customers who buy newer motorbikes, because they are less risky to finance. Older bikes have lower resale value and bigger risks. See common bike buying mistakes to avoid here.
Do your homework
Shopping around and getting quotes on bike finance is your ultimate way to find a better deal on motorbike finance. The more knowledge you’re armed with, the better. If you’ve locked down a prospective lender with a good deal, you can even ask for lower rates based on other competitors’ they have to match. Figure out which packages have “low” rates but high fees. Do you need a loan that won’t penalise you if you pay it off early? If you want to know more, it’s worth talking to a financial professional at a bike loan brokerage. They’ll always steer you in the right direction and know the market better than most. It’s another sure fire way to get the best deal on motorcycle finance!