An MC loan works just like a loan for the purchase of other vehicles such as a car, boat, caravan or scooter. Sometimes it is called leisure loans. It is related to the private loan and requires security. For the motorcycle loan, it is the motorcycle that you set as security.
The loan may be taken up to a maximum of 80% of the motorcycle’s value. When buying, you have to put 20% in cash or leave an old MC with the equivalent value in exchange.
When taking a motorcycle loan, it is important that the repayment period is adapted to the motorcycle’s value reduction. If the installment is too slow, there is a risk that you have a residual loan of a higher amount than the motorcycle is worth.
When signing a loan for the purchase of MC, make sure there are no hidden costs or fees. An important thing to check out is that you are not charged with any fee on early redemption. If you choose to sell your motorcycle before you have paid for it, you will be able to redeem the loan at no cost.
Borrow through motorcycle sellers or directly at the bank
Many motorcycle dealers can offer loans to finance your motorcycle purchase. Sometimes their offer may be good but do not feel that you need to take their offer. Check out which options are available from your bank or other credit institutions.
When comparing your offer of motorcycle loans, you must ensure that you receive a significantly better interest rate than the corresponding amount in the form of a private loan. The big difference is that you can set your motorcycle as security against the bank. In a classic private loan there is no security and then one should pay a higher price for that loan.
Tip! Do you have a mortgage loan but are far from fully mortgaged? Check if you can extend the mortgage to finance the purchase of your motorcycle. The terms and the interest on mortgages belong to the absolute best right now.
If you want to try and see what interest you can get it is easiest to make an application through a loan broker. Just bring that you apply you do not have to take out any loan. Make an application and then compare it to the offer you received from your motorcycle dealer.