How to choose your bike loan
How to choose your bike loan?
The bike has always dreamed big and small. But from dream to reality, there is often the obstacle of the budget. Acquiring a motorcycle on credit can then be the ideal solution if the household budget can support this monthly charge. Still, it is important to choose the type of credit. But also opt for a motorcycle really adapted to its needs.
Choosing your bike
When choosing the type of motorcycle that we will acquire, we must first define whether it will be a recreational vehicle or whether it will be useful on a daily basis. In the latter case, we must favor a model with a good level of comfort, maneuverability and a certain sobriety in fuel consumption. However, for a leisure bike that will take the road only on Sunday, the lack of pragmatism of the machine is less restrictive.
Here are the points to highlight for choosing a bike model:
– its weight: a heavy motorbike is much less manageable at low speed, so to proscribe for displacements only urban;
– its power: the choice of displacement depends on the driver’s license held by the driver. It is also important to consult your insurance company, as some refuse to take charge of some large motorcycles;
– ground clearance: a motorcycle that is too low can prevent access to a parking spot if you have to cross a sidewalk;
– its efficiency: a motorcycle that consumes a lot of fuel is expensive on a daily basis and requires many passages in the service station (the motorcycle tanks have a much lower capacity than those of cars);
– the comfort of its upholstery: especially in the case of long daily journeys.
What credit to buy his bike?
Different credit solutions exist to acquire a motorcycle. They each have their advantages:
– the credit allocated to the purchase of a motorcycle: this loan formula is offered by the dealer when selling a new motorcycle in particular. The amount allocated is strictly identical to that of the purchase price of the vehicle. The acceptance of the credit triggers the order of the motorcycle, and the reception of the motorcycle makes run the beginning of the repayment period. This direct link between the start of the credit and the delivery of the bike simplifies things. However, the assigned credit rates are generally among the most advantageous in the market.
– the personal loan: it is the most widespread credit solution in terms of consumer loan. Intended for several uses (car, motorcycle, holidays, etc.), the personal loan is offered by all banks and credit institutions. A good way to play the competition to negotiate a lower interest rate. Its amount is not assigned to the price of the bike, and it is therefore possible to borrow a little more to equip (helmet, jacket, top box, etc.).
– revolving credit: with higher rates and shorter repayment terms, the revolving credit imposes significant maturities. It is usually chosen by people who can not access a traditional credit offer.
– long-term leasing (LLD): this is a rental formula paid by a monthly rent over a period generally ranging from 3 to 36 months. At the end of the contract, the bike returns to the dealer to be sold. We must peel the terms of the contract upstream, including the conditions of rehabilitation of the motorcycle at the end of the contract
– the lease with option to purchase (LOA): it differs from the LLD, because it offers the possibility to the user of the bike to negotiate its redemption at the end of the contract.
Compare motorcycle loan offers to better choose
To compare offers of credit easily, banks provide internet users with loan simulators. Perform a motorcycle online credit simulation with Creditstair to adjust the amount and duration of repayment to your needs!
After choosing the best offer of credit, you must be able to subscribe. In many cases, acquirers who are denied a loan because of their low borrowing capacity are turning to more expensive alternatives such as revolving credit. The acquisition of a motorcycle is very rarely an emergency, it is often better to postpone the purchase time to build a personal contribution that will be in a more favorable situation.