Everything you need to know about motorbike finance
26 April 2023
By Joy Pearson
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Motorbikes are a popular mode of transportation for many people around the world. Whether you're a seasoned rider or a beginner, purchasing a motorbike can be a big investment. Fortunately, there are several options available when it comes to motorbike finance. In today's post, we'll cover what you should to know about motorbike finance before making any final decisions.
There are several different types of motorbike finance options available, each with their own pros and cons. Some of the most common types include, Hire Purchase (HP), which is where you pay a deposit and then make monthly payments, once the final payments has been made, you own the motorbike. Similar to HP, PCP involve making monthly payments over a set period of time. However, at the end of the agreement, you have the option to either purchase the motorbike outright or return it. Then you have a Personal Loan, which is a unsecured loan that can be used to purchase a motorbike outright. The loan is typically paid back over a set period of time with interest. Lastly, some individuals may choose to use a credit card to purchase a motorbike. While this can be a convenient option, it's important to note that credit card interest rates are often higher than other types of finance.
Opinions on motorbike finance can vary depending on personal experiences and individual circumstances. Some people may view motorbike finance as a convenient option for purchasing a motorbike, while others may prefer to save up and purchase outright to avoid interest charges.
One potential downside of motorbike finance is the added cost of interest. Depending on the type of finance you choose, interest rates can vary, and you may end up paying more for the motorbike in the long run. Also, motorbike finance may not be available to everyone, as lenders will typically require proof of income and may be hesitant to lend to those with poor credit.
However, there are also several advantages to motorbike finance. For those who cannot afford to purchase a motorbike outright, finance options can provide an opportunity to own a motorbike while spreading the cost over time. For those who are able to make monthly payments on time, motorbike finance can help build credit and improve your credit score.
Overall, the decision to finance a motorbike is of course a personal one, based on individual circumstances. It's important to carefully consider all options and choose the type of finance that is best suited to your needs and financial situation. With the right approach, motorbike finance can be a convenient and affordable way to own a motorbike and enjoy the freedom of the open road.