| Motorcycles and Twowheelers: Buying motorcycles - "Common mistakes motorcycle buyers make when looking for a motorcycle loan" Wednesday, 20 August, 2008 | Home | Suggest a Link |
Formula 1 Fantasy LeagueWhether interest rates are high or low or it's the end of a model year with lots of incentives, motorcycle buyers tend to make the same mistakes when shopping for a motorcycle loan. Here are four common mistakes motorcycle buyers make with motorcycle loans.
Many motorcycle buyers enter the showroom looking for a motorcycle before they determine how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is no need to shop for a $20,000 Harley Davidson motorcycle, if a lender is only willing to provide a loan amount of $10,000.
Additionally, once motorcycle buyers enter the showroom, slick salespeople often pressure them into motorcycle loans with much higher interest rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or online. Salespeople do not like motorcycle buyers to leave the dealership to get a motorcycle loan. In the salesperson's mind this only increases the chance of losing a sale and commission. Therefore, salespeople frequently try for a quick sale, which normally results in pushing motorcycle buyers to get motorcycle financing at the dealership.
The bottom line is that it is always best to shop for a motorcycle loan before entering the showroom.
Motorcycle buyers often jump into motorcycle loans that they do not completely understand or which may not be the best alternative for them. For instance, in today's age manufacturers frequently run credit card motorcycle loan promotions on their private-label credit cards. But these promotions typically offer a low interest rate for a short term like 12 or 24 months and have a much higher interest rate after the short promotional term. On a credit card promotion, if motorcycle buyers cannot afford to pay off the loan during the short promotion period, then they are typically better taking a slightly higher interest rate on an installment motorcycle loan for a longer term.
The most common mistake the first time motorcycle buyer makes in not having a clear sense of how much motorcycle they can afford. This is especially true for young motorcycle buyers who look to buy the top sport bikes that cost up to $10,000 - $15,000. What they fail to realize is that financing a $10,000 - $15,000 motorcycle can stretch them too thin, resulting in them having little cash to enjoy themselves and the motorcycling lifestyle. They may also have too little cash to pay for insurance, maintenance, registration or new accessories for their motorcycle.
The first warning sign that motorcycle buyers should see is that if they do not understand the type of motorcycle loan, then they should be sure to ask a lot of questions.
Here are some good questions to ask:
Overall, motorcycle buyers can avoid these common mistakes by spending a little extra time focusing on shopping for a motorcycle loan and asking lots of questions.
With the depreciation on motorcycles being so enormous after they are driven off the showroom floor, the potential for a buyer owing more on their motorcycle loan than the bike is worth it quite high. Owing more on your bike than it is worth is often referred to as the world of “up side down”.
Many people finding themselves in this situation discover that financial lessons are sometimes the hardest and most expensive to learn. Motorcycle loans of more than 48 months (especially without a down payment) put you in the position of owing more than the value of the bike.
Let’s
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Before the 1920s it was an easy decision, a foot-powered push scooter or none at all. But once Gino Tsai from Shanghai, Taiwan developed the Razor scooter it changed everything. His motor scooters became popular so quickly there were people waiting in line for six months before they could get one.
In the 1950s companies like Vespa in the UK started selling the first of their gas motor scooters. It was a big hit at the 1950 Motorcycle Show and quickly became a big hit in the UK as well. Vespa sold over 125,000 in the UK between the years of
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Have you checked out the price of a new bike lately? It wasn't that long ago when you didn't have to fork out that much dough for a new car. In fact, many bikers will remember when you didn't have to pay much more than that for a modest house. The prices for houses and cars have shot up over the years. And, so have the prices of motorcycles. The point is, the price of a new bike can take a good-sized bite out of any budget. Buying a used motorcycle is one way to
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The usual way new and even many experienced bikers decide on what bike they are going to buy is to look at what their buddies are riding, or what the magazines have been testing recently.
While both these options have some merit they are not without their problems.
Consider:
| a) | your mate may be a different size from you, they may be more or less flexible, they may be more or less experienced, their riding style and needs may be completely different from yours and so ultimately will be their choice of bike. | |
| b) | Magazine tests, the Read this article in full Tips For Finding A Motorcycle Loan With A Better Credit Scoreby Jay FranIt is common knowledge that motorcycle financing companies base high importance on your FICO credit scores when approving motorcycle loans. However, what many people overlook is that their FICO credit score can dramatically impact the term on their motorcycle loan along with the interest rate that is assigned to the motorcycle loan. In order to gain better
motorcycle loan rates, it is highly important that you think of
your FICO credit score as a picture of how risky you are to the
lender. Your FICO credit score is essentially a benchmark which
motorcycle financing companies use to grade you and assign a
risk to you when applying for a motorcycle |
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