You may have noticed that with some bike finance companies, you can only use the money to buy a motorbike from a registered dealership. Ever wondered why that is?
It sure can limit the choices you have when it comes to buying your next motorbike. In today’s age, most people are getting their motorbike loan pre-approval set up before heading out to buy their new pride and joy so having their choices limited to what is sitting on a Dealer’s showroom floor at the time can be frustrating. You might also find that you can get a better deal on a similar motorbike that you find advertised by a private seller.
If you want a bike loan to buy a used motorbike from a private seller then you need to make sure that the people that you have on your side helping you get the right motorbike loan have the right financiers on their panel to offer you the best bike loan options available on the market. Typically, bike loan lenders fall into one of three categories:
Most financiers that will look at doing motorbike loan have restrictions for one simple reason, and that is that private sales are viewed as a riskier transaction for them. Understanding their reasons will help you to decide which financier is the right one for you.
Finance companies are always concerned with risk. With any bike loan purchase, the risk is that the customer may fail to make their repayments, in which case the company needs to recover its money somehow. With a dealership motorbike loan package, the bike itself is the security for the loan, and there is a strong paper trail for the purchase.
In this circumstance and in the financier’s eyes the value of the motorbike is more assured, plus the dealer must have a Motor Dealers Licence in order to operate. In a financier’s opinion this helps reduce the risk and lends them to be more open with their lending which includes opening up to lower rates and sometimes more flexible lending options for the customer.
With a private sale motorbike, it’s harder to know that the seller is genuine and that the motorbike is legitimately in full working order and not modified. There’s less assurance that the lender will be able to recover the money if the customer fails to make repayments.
If you want to buy your motorbike privately, some companies will only offer an unsecured personal loan, which can come with a much higher interest rate. They do this to offset the risk of the private vehicle sale. They may also request to take additional security over something else that you currently own, for example your car.
At Fox Finance Group, we have several financiers that are willing to offer our customers very competitive interest rates on a normal secured bike loan contract, even if you are buying your motorbike privately. There are some verifications and checks that need to be performed by us in this scenario but that’s just part of our job and part of the normal process that we work through every day.
Fox Finance Group understands your passion for motorcycling. We also have specialists that deeply understand motorbike loans.
Fox Finance Group is one of Australia’s leading personalised financial service organisations. We have spent many years getting things right so that you can rest assured that you are getting the very best financial advice available on the market today. We work for you, not the banks, plus we can have a loan pre-approved ready to go the same day!
As a Fox Finance Group Client, you have access to your very own Accredited Loan Specialist along with access to your very own Qualified Financial Planner. Our team comprises of specialists with many years’ experience in Car Loans, Home Loans, Bike Loans, Boat Loans, Jet Ski Loans, Camper Trailer and Caravan Loans, Truck Loans, Personal Loans, Business Loans, Insurance, Financial Planning and more. Yes, we have a large team here at Fox Finance Group ready to help you.
We pride ourselves on the unique personalised service that we provide our Clients. Your Loan Specialist can help you either over the phone, via email, at your home, at your work or at your own business. You get their direct email address and mobile number, which makes it easy for you to stay in contact with them when you have questions.
If you are keen to learn more or you are ready to act now, you can contact us on 1300 665 906 or you can get started here.
Nathan joined Fox Finance Group in 2018 to help drive the strategic growth of the business and also help build on the solid foundations that have held strong in the business since 2006.