Whether you’ve been riding for years, or are finally building up that dream purchase that you’ve been dreaming of for so long, a new motorbike is rarely a cheap purchase.
That’s why so many choose to opt for a finance agreement, which allows you to split the cost of your motorbike into a series of smaller monthly payments.
There are many finance deals available to you, but make sure that it’s the right option for you before proceeding, as it’s a long commitment.
However, if you do wish to buy a motorbike on finance, we’ve put together this quick guide.
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Types of Finance
There are three main types of motorbike finance available: hire purchase, personal contract purchase and personal loans.
Most people will opt for hire purchase, where you secure a loan against the bike which you pay off over an agreed time period. Once the final payment is made, it’s yours to keep.
With a Personal Contract Purchase, you’ll only borrow the amount that the bike will depreciate by and there’s a balloon payment at the end, which you can either pay and keep the bike or just return it.
Finally, a personal loan gives you much better rates and flexibility, although they’re usually only available to those with good credit ratings.
To find out more about the various types of vehicle finance available, check out this guide from the Money Advice Service.
Be sure to do plenty of shopping around when looking for finance for a motorbike as there are a number of ways to go about it, whether you go through a broker, or perhaps direct to a manufacturer or dealer.
Getting a Good Deal
One of the downsides to buying a bike on finance is that you’ll often be expected to pay the full retail price of the bike with no discounts.
However, there are a couple of ways that you can go about trying to get yourself a better deal.
The first is to see whether you can perhaps get a discount by paying in cash. This won’t always be the case but it’s definitely worth asking.
It’s also worth seeing if you can pay more of the initial deposit up front to reduce your monthly repayments and some dealers may even offer your freebies such as helmets, clothing or other accessories which you would have been buying anyway.
Poor Credit
People often wonder if it’s possible to secure motorbike finance on bad credit, and while it might make it a little bit trickier, that doesn’t mean it’s impossible.
That’s because lots of lenders have specific plans which are tailored towards those with bad credit.
Because those with a poor credit rating are generally seen as being a higher risk, you’re probably going to have to pay higher rates.
If you’re wondering whether you might be able to get finance on a motorbike despite a less than ideal credit history, check out this finance calculator from SuperbikeLoans.co.uk, who can also put you in touch with specialist motorbike finance lenders.
