Unconcerned about freedom with a motorcycle loan
If your savings are not sufficient, a long-cherished wish can still be fulfilled with a motorcycle loan. You do not have to wait with the purchase of a new motorcycle and all associated attributes for motorcycling. A motorcycle loan gives you the financial freedom to do what you have always dreamed of and hit the road. In order not to be confronted with disappointments, you should seek advice. This applies to the purchase of the motor and the loan.
Go to a dealer
Especially if you are buying a motorcycle for the first time, a visit to the dealer is really recommended. Such a specialist will help you find a motorcycle that suits your riding style. He has all sorts of tips on things you probably haven't thought of. By consulting a dealer and ultimately buying a motorcycle there, you can avoid disappointment. Many dealers also have a solution for financing the motorcycle. You then buy the motorbike with an installment motor loan, whereby the motor will eventually become fully yours through monthly installments.
Save on the purchase of a motorcycle
There is a chance that the costs for the purchase of a motorcycle will be higher than you had estimated in advance. It turns out that your savings are actually just a little short. You can then do three things. Wait until your savings have grown sufficiently before buying the motorcycle, buy a cheaper motorcycle, or take out a motorcycle loan. The last option is the safest and the most pleasant. Because then you buy the bike of your dreams, you do not have to wait with the purchase and you do not end up in a financially risky position.
Characteristics of a motorcycle loan
An important feature of a motorcycle loan is that the purchase price of the motorcycle is not only considered. There are other rather expensive aspects to consider when purchasing a motorcycle. You can think of a good helmet, motorcycle clothing and perhaps a communication system. But also the process to get on the road with the motorcycle and to insure it costs money. Those costs can also be financed with a motorcycle loan. Incidentally, it depends on the provider of the motorcycle loan how flexibly it is handled. You can borrow more extra from some providers than others.
Difference between a motorcycle loan and a personal loan
Sometimes the buyers of a new engine decide to purchase it with the help of a personal loan. That is possible, but if you have the opportunity to take out a motorcycle loan, it is financially more attractive. That's because the interest to be paid on a personal loan is significantly higher than for a motorcycle loan. You can therefore repay a motorcycle loan faster. A condition for obtaining such a loan is that the invoice for the purchase of the motor must be submitted to the lender.
What can you use a motorcycle loan for?
A motorcycle loan is of course used for the purchase of a motorcycle. However, you can also use it to buy a scooter or a quad. The bike you buy doesn't have to be new. A second-hand motorcycle can also be financed with the help of a motorcycle loan. Keep in mind that most lenders treat an engine for up to two or three years in the same way as a brand new engine. As the engine is older, the interest you have to pay will increase. This is because banks have the idea that an older engine breaks down faster than a new one.
Is a motorcycle loan the same as a car loan?
There is virtually no difference between a car loan and a motorcycle loan. With both loans, it is mandatory to submit the invoice for the new means of transport. And with both vehicles, the interest to be paid depends on the age of the vehicle. The only difference is that you cannot use lower interest rates when purchasing a motorcycle due to ecological aspects. Whoever buys a clean car therefore pays a lower interest. Although there are also clean engines, you cannot take out such an ecological loan for an engine.
How is a motorcycle loan practically arranged?
Obtaining a motorcycle loan starts with an application. This can be done by the dealer where the bike is bought, but you can also do it yourself. Once the loan has been approved, the lender will transfer the loan amount to your bank account after receiving the purchase invoice. You get that amount in one go to pay for the motorcycle and to pay any other costs, such as the insurance of the motorcycle. Payment will start one month after transferring the loan amount.
When the agreement was concluded with the lender, agreements were made about the repayment. They are in the repayment plan. So you know in advance what amount must be paid monthly for the motorcycle loan and how long you are obliged to make that monthly repayment. The monthly payment is made on a fixed day in the month. It is mandatory to repay that amount, even if the engine has broken down or if you do not use the engine for any other reason.
How long do you have to pay off with a motorcycle loan?
One motorcycle loan does not look like another. In particular, the repayment term can differ considerably per motorcycle loan. That depends on the chosen lender. But the amount of the loan and the amount that you can pay off per month also influence the repayment term. It is usually the case that a motor loan that is quickly repaid requires a lower interest rate than for a loan with a longer repayment period. A loan that is paid off quickly is therefore cheaper than a loan that takes longer to repay.
What is better, saving or borrowing?
The purchase of a motorcycle can of course be financed by first saving money and then purchasing the motor with the money saved. Saving has the advantage that you save money because you do not have to pay interest. A disadvantage of buying a motorcycle with savings is that your reserves will then decrease. This can be annoying with other unexpected expenses. Another disadvantage of saving for the purchase of a motorcycle is that you usually have to be patient for a long time before you can make your first ride on the motorcycle.
When is the interest on a motorcycle loan deductible?
In theory, it is possible to deduct the interest that you pay on the motorcycle loan from the tax. A number of conditions apply for this. You can only deduct interest from the tax if the motorcycle is used for commuting or if you make business trips by motorcycle. If that is the case, you must take this into account when completing the tax return.
Which motorcycle loan is best for me?
There is a big difference between the different motorcycle loans. The differences have to do with the conditions and the level of the interest. The conditions show whether the borrowed money may be used for additional costs related to motorcycling. There are several reasons why the interest rate is higher with one provider than with another. It is therefore useful to compare the different loans before you decide to go into business with a lender for a motorcycle loan.