Familiar Errors Motorcycle Consumers Often Make Once They Begin Looking For A Motorcycle Loan |
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Jay Fran
March 9, 2006
No matter if cycle financing rates are currently increasing or decreasing or it’s the end of a model year with tons of dealership promotions, many motorcycle riders have a tendency to have a misunderstanding as they are looking for a motorcycle loan. More often than not there are 4 reoccuring mistakes motorcycle consumers often make with motorcycle loans.
1. Looking for a motorcycle before considering looking for a motorcycle loan.
A lot of motorcycle buyers will enter the showroom searching for a motorcycle before considering how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is little need to look at a $10,000 Suzuki motorcycle, whenever a lender is only ready to offer a loan amount of less than the motorcycle costs.
Additionally, when motorcycle purchasers enter the dealership showroom polished salespeople often pressure them into motorcycle financing with much higher cycle financing rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or on the internet. Salespeople don't prefer motorcycle buyers to exit the dealership in order to get a motorcycle loan. In the salespersons view this just strengthens the chance of not getting a sale and commission. Therefore, salespeople often attempt for a speedy sale which normally results in pushing motorcycle riders to get motorcycle loans at the dealership.
The bottom-line is that it is always best to shop for a motorcycle lender prior to entering the showroom.
2. Plunging into the unknown motorcycle loan.
Motorcycle riders often jump into motorcycle loans that they do not entirely comprehend or even might not be the right alternative for them. Sometimes, in today’s age Japanese motorcycle makers often times offer credit card motorcycle loan promotions on their private-label credit cards. However these consumer financing promotions generally offer a reduced interest rate for a very short term like 12 or 24 months and have a much higher interest rate following the short promotional term. On a private label credit card promotion if motorcycle purchasers can not afford to pay off the loan during the short promotion time period, then they are usually better with a slightly higher interest rate on an installment motorcycle loan for a longer term.
3. Borrowing too much.
The most frequently repeated mistake the first time motorcycle purchaser makes is not getting a clear feel of how much motorcycle they may be able to afford. This is especially true for younger motorcycle purchasers who look to buy the top sport bikes. What they often time neglect to understand is that financing a $10,000 - $20,000 motorcycle may stretch them to thin, resulting in them having little cash to enjoy themselves and the motorcycle rider lifestyle. They may also have too little money in order to pay for insurance coverage, maintenance, registration or new accessories for their motorcycle.
4. Not asking the right questions.
The number 1 warning sign that motorcycle riders should see is that if they do not understand the type of motorcycle loan. If this occurs then they should be extra sure to ask a lot of questions.
The below question can assist in pointing motorcycle buyers in the right direction:
How long is the term on the motorcycle loan?
Are there circumstances that can make the interest rate on the motorcycle loan change in the future?
Is this a fixed of variable rate motorcycle loan? If fixed how long will it be fixed for?
Will the loan rate increase if a payment is 30 day's late?
What are the insurance requirements?
What happens if a payment is 60 days past due? Does the interest rate increase?
How many add on fees are there and are these fees included in the loan?
What are the document fees to process the motorcycle loan and how much are the fees?
In general, motorcycle riders can avoid these familiar mistakes by focusing their attention on shopping for a motorcycle loan and asking questions to the motorcycle lender.
Copyright (c) 2004-2006, by Jay Fran. This article can be freely published as long as the copyright, author's information and the all active live links with anchored text in the article are published.
About The Author:
Jay Fran is an avid motorcycle rider who has a professional background in motorcycle financing. Jay particularly enjoys both cruiser style and high performance sportbike motorcycles. Jay is also the developer of motorcycle-financing-guide.com a internet site which is specializes in assisting motorcycle consumers locate the best motorcycle loans available on the market. Motorcycle-Financing-Guide.com provides help offering many types of motorcycle financing including good and high risk motorcycle loans, and 84 month motorcycle loans.