If you are in need of a loan to buy a motorcycle and you have a less than ideal credit rating there are a few points to consider, which we will cover here. As motorcycling is seen as a risky pastime lenders see a loan for a motorcycle riskier than a loan for a car. This is irrespective of your credit rating.
With motorcycling becoming ever more popular and a lot of inexperienced riders appearing , minor or major damage to motorcycles is common. This of course devalues the motorcycle and if some reason you don’t keep up with your payments and the loan company needs to repossess your bike the value will be affected. This is one of the main reasons why motorcycle loans are slightly harder to get than a loan for a car. Also the rates of interest tends to be a bit higher.
Motorbikes depreciate even quicker than automobiles and are more easily cosmetically damaged. I personally have known friends buy a motorcycle using a loan, crash the bike and never pay the loan company. In one particular case a friend of mine bought a Suzuki GT 380 on hire purchase and blew the engine up. He then stripped it down and left it in bits in the shed. He then stopped his repayments which caused an agent from the finance company to call at his house to repossess the bike. He showed him the bike in bits in the shed and needless to say the finance company agent was not interested in reposessing it.
This one small example demonstrates the higher risk in lending money to someone to purchase a motorcycle, which of course explains why it can be slightly more difficult to obtain a loan and why the rate of interest on said loan may be a bit higher. Of course when you factor in the person wanting the loan has a poor credit record this does not help one bit. But having said that it is still possible to obtain a loan for a motorcycle even with a dodgy credit record. It just may cost you a bit more in interest and be slightly harder to find.
{ 0 comments }
