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Loans for motorcycle
On this page we present everything you need to know about loan for motorcycle. The purpose is to create knowledge of loans for motorcycles and give an overview of the different loan options. We explain, among other things, how you can easily finance your motorcycle and what costs are in the loan.
So if you are going to buy a motorcycle and want to know which funding options are, or just want more information on the subject, then you have come to the right place as we here guide you on how to find the best loan for motorcycle.
How do I fund my motorcycle?
How do I fund my motorcycle?
Do you dream of a life with more speed over the field? Then a motorcycle is the right investment for you. Driving a motorcycle is a hobby that you will experience directly related to more freedom when cruising on the snorkel roads or marking the machine’s insatiable horsepower on the highway.
Buying a new motorcycle can be incredibly expensive, and therefore, not everyone can afford to fund their new motorcycle on their own. In this connection, it may be a solution to take out a loan from a loan provider.
There are two different types of loans that you can use to finance your motorcycle.
These loans are categorized as unsecured loans and secured loans, respectively.
A secured loan is a loan where the bank has a mortgage on your motorcycle. That is, the bank requires you to sell your motorcycle if you cannot repay your loan on your own. Since the bank gets a security for the loan, it also means that you are offered a more favorable interest rate. A loan for a motorcycle is thus reminiscent of a car loan, boat loan, home loan or cottage loan, where the loan is intended for the financing of the specific asset.
A traditional motorcycle loan will only be granted if you can pay 20% in own payment. If this is the case, the bank will finance the last 80 percent of the motorcycle’s purchase price. In this way, you set the bank a security in the loan in the form of an asset, so that the bank runs a small risk by borrowing money. This also gives you a lower interest rate.
You can, however, also choose to borrow an unsecured loan to finance your motorcycle purchase. Conversely, an unsecured loan is a loan where the bank does not receive collateral for the loan via an asset. These types of loans therefore typically include consumer loans and private loans. If you choose to take out an unsecured loan, it means a higher risk for the bank than for a secured loan, which is why you typically get a higher interest rate.
Old vs new motorcycle
There are no set rules that determine which motorcycle you can buy with your motorcycle loan. It also means that it is subordinate to which model or brand you intend to buy.
However, the life cycle of the motorcycle has an impact on the type of loan that you can be offered. The loan providers will, for example, do not offer you a secured loan for the motorcycle, if it is over 15 years old or costs less than $ 50,000, as the loan provider runs a greater risk by lending you money for a used motorcycle that has fallen in value. If this is the case, then you need to get hold of an unsecured loan, as the same claim is not made by the bank with this type of loan.
What does it cost me to take a loan?
At Personal Payday you can use our loan calculator, which gives you a quick and clear overview of how much it can cost you to borrow money for your upcoming motorcycle.
However, there are several factors that influence what it will cost you to borrow a loan. Therefore, the loan calculator is just an indication and not the final price. Below we briefly review a number of the factors that influence the price.
Your credit rating is crucial to your loan offer
Before the banks can offer you a loan that suits you, a credit rating of you and your finances will be made.
Specifically, this means that the loan provider must assess your ability to repay the loan based on your public and private information available. This information relates inter alia to that the loan provider looks at the following:
Your current monthly salary
Your disposable amount
Any existing debt items
A credit rating may seem like a comprehensive and unnecessary process for many, but the process really only ensures that it is safe to borrow money and that you get the best possible loan. The credit rating also means that you do not run the risk of ending up with a loan that you have poor ability to pay back to the loan provider.