If you’re among the many people who plan to purchase a motorcycle this year, congratulations! While motorcycles require skill and practice before they can be ridden safely, once that barrier has been passed, riding is an exhilarating experience. Whether you’re scooting through traffic or cruising open highways, there’s nothing quite like the feeling of wind on your face as you tear across the landscape.
What can make buying a motorcycle even better is knowing that you’re getting a good deal on it. Read on for our 5 biggest mistakes to avoid when shopping for your dream motorcycle loan.
Getting the first loan you see
One of the biggest mistakes you can make is not shopping around, and going with the first motorcycle loan you come across. The truth is, while some motorcycle loans may look like a great deal at first glance, you could actually end up paying more than necessary by signing with them. The best way to avoid that trap? Ask for quotes from multiple lenders before making any decisions; depending on your creditworthiness, rates and terms can vary widely between companies.
Failing to do research
You’ll also want to do your homework before you apply for a motorcycle loan. Make sure you know what type of motorcycle will fit your needs, and how much you’ll be willing to spend on it. Then, once you’ve chosen the right bike, find out what its price tag is by checking online dealerships or visiting local showrooms – the more thorough your research, the better equipped you’ll be to secure a loan that fits your needs. If you know you want a Yamaha bike, for example, check to see what specific Yamaha finance rates are available. This might include considering dealer finance and online financing options.
Not checking your credit score
Many people avoid checking their credit score, because they don’t want to deal with the anxiety of seeing a low number. However, understanding your credit history and knowing which areas you’re doing well in is one of the best ways to secure a motorcycle loan. After all, when you have strong credit, lenders are much more likely to offer you competitive rates and terms; conversely, if your credit score is average or below average, you may struggle to get approved for a loan.
If you know your score isn’t great, now is the time to improve it by paying down any high balances on your credit cards , then making sure that all of your old debt has been reported correctly. That way, when you apply for your motorcycle loan, your credit will be in tip top shape. Otherwise, you’re only left with bad credit loans, which may not be enough to get you a motorcycle but would be a great lifeline for emergencies.
Read the fine print
Before you sign on the dotted line, make sure to read any and all paperwork associated with your loan. There’s nothing worse than realising that the low-interest motorcycle loan you thought you got is actually going to cost much more than expected – so always take a few minutes to check that the rates and terms listed in the contract are exactly what was agreed upon.
Buying a motorcycle can be an exciting experience – as long as you’re careful with your money and research the process thoroughly. By avoiding these mistakes, you’ll ensure that you get both the bike of your dreams and a fair interest rate for your loan. Happy riding!