motorbike loan

How to Get a Loan for a Motorcycle

better™️

If you’ve been thinking about buying a motorbike, you might be wondering how you’ll finance it.

A motorcycle loan can be a great option if you don’t currently have the cash in the bank to pay for your new wheels upfront.

But it’s important to understand the loan process from the outset.

better finance™’s team is experienced in helping borrowers find a motorbike loan that’s a great fit for them.

Here are a few things you need to know.

Why consider a motorcycle loan?

There are lots of reasons you might decide to get a motorcycle loan.

Affordability: Getting finance for your bike means you can spread the cost. Instead of paying a lump sum upfront, you’ll be paying it off over a series of smaller, manageable payments.
Flexibility: You can generally choose loan terms that work with your financial situation. A longer loan term is likely to mean lower repayments. But if you’d like to pay off the debt more quickly, you might opt for higher payments.
Quick access: There’s no waiting around while you get the money together for your motorbike. You can make your application and start the process moving any time you like.

Steps to get a motorcycle loan

Here are a few steps that you might need to work through on your way to getting a motorbike loan.

Step one: Determine your budget

We can help you work out what sort of loan might be affordable for you, but there are a few steps you can take, too.

Think about your current income and expenses. What do you typically have left over each month that could comfortably be committed to loan repayments?
This will give you a guide as to what might be an affordable repayment for you.
From there, you can use a calculator such as better finance™’s online calculator to see what sort of borrowing amount that might cover.

Step two: Check your eligibility

Next, you’ll need to get together the information to get your loan application moving.

You’ll need things like proof of income, valid ID, and evidence of stable financial history, which are usually demonstrated in your bank statements.

You will probably also need to show proof of address. Having these ready now means we can get your application moving more quickly.

If you already know the details of the bike you want to buy, you can provide better finance™️ the details of this too. Otherwise, you may be able to apply for preapproval to give you an idea of what might be possible.

Lenders will need to be satisfied that you can afford any loan you take out. They have a legal requirement not to approve a loan that could or would put you into hardship.

They will also usually want to use the motorbike as security for your loan. That means that if you stop making your repayments, the lender can take the bike and sell it to recover what is owed. Secured loans may also have lower interest rates than unsecured loans, so this can work out to be a benefit for you, too.

Step three: research your options

The benefit of working with better finance™️ is that we’ll take away the headache of having to compare the different lenders in the market to work out what might suit you.

We'll look at your situation and circumstances and work out which lender is likely to be a fit.

We can also work through any questions you have about their interest rates, terms and fees. better finance™️ has really clear terms and no hidden surprises. You can see more information about fees here.

Step four: Apply for the loan

We have a simple and easy online application process that might give you an answer more quickly than you expect.

If all the documentation that we need is in order, you may be able to get an answer within a day or two.

At better finance™️, we also have an expert team of advisers who can offer personalised assistance if you have any questions.

Step five: Review and sign the agreement

Once the loan is approved, you'll be sent an agreement to sign.

At this point, it’s important to carefully read the loan terms and conditions. At better finance™️, our team will help you to fully understand the terms and conditions of your loan agreement. The lenders we work with are transparent about their fees.

Step seven: Receive your funds

You’re good to go! Once the loan is approved, the money should be paid out within 24 hours in most cases. If you’re buying from a dealer, the money will go directly to them.

Tips for a successful loan approval

There are some steps you can take at the outset to help you get a loan that’s a suitable fit for you.

Improve your credit score: Pay off your existing debts and check your credit report for errors. If you have good credit, you're more likely to be able to get a loan and may be able to get a better interest rate.
Borrow responsibly: Lenders won’t let you borrow more than you can afford, but you should also consider what works for you. Some people aren't comfortable borrowing the maximum available.
Understand the total cost: We can help you work out what the total cost of your borrowing is likely to be, including interest and additional fees.

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Common pitfalls to avoid

There are a few things to keep in mind before you borrow.

Don’t ignore the fine print: It’s really important to understand the terms and conditions of your loan, especially things like what your options could be if your circumstances change. We can help you understand any loan you’re considering.
Don’t overestimate your repayment capacity: You’ll need to make sure you fully disclose all your expenses to allow a lender to assess what’s affordable for you. If you know you may have more expenses in the future, or your circumstances might change, it’s important to think about how you’d cope with those things and be upfront about that, too.

Why choose better finance™?

Here are three quick reasons why better finance™ is a great option.

Fast and easy application process: Do it all online, and get an answer quickly. No waiting around when you want to get on the road.
Tailored loan solutions: We’ll help you find a loan that suits you, with competitive interest rates.
Transparent fees: There are no hidden charges at better finance™. We’re upfront about all the fees involved, and you can ask for advice from our expert team at any time.

Conclusion

If you’re hanging out to buy that new set of wheels, get in touch with the team at better finance™ today. We’re experts when it comes to motorcycle finance.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.