If you’re looking to buy a new bike but don’t have the cash to make the upfront payment, bike finance can be the answer. With a finance deal, you can pay off the bike in a number of installments over three to 48 months, depending on the lender’s terms. Shorter term agreements usually feature zero per cent interest, whereas longer term plans will typically have higher interest percentage rates.
Applying for bike finance is a process that should be done carefully. There are several common pitfalls that could prevent you from getting the best financing deal. First of all, you should be wary of the promotions you’re offered by bike salespeople. These offers often have introductory rates that increase after 12 to 24 months. As such, it’s best to find an independent lender instead.
Another important factor to consider when applying for bike finance is your credit score. This is a measure of your reliability as a borrower. A bike financer will check your credit report to see if you’ve had any recent defaults or skipped EMIs. A low credit score may result in a higher interest rate or rejection.
The process of applying for bike finance varies between retailers and brokers. Some retails, however, don’t offer flexible financing options. For example, when applying for bike finance from Evans Cycles, you need to spend a certain minimum amount. However, if you spend a minimum of PS280, you can take advantage of interest-free finance. In this way, you can spread the cost of your bike over twelve, nine, or twenty-four months and pay it off in two or three instalments.
Another option is a PCP loan. This type of finance will allow you to update your bike over the course of a few years. Then, when the term ends, you’ll have the option of returning the bike to the lender, or part-ex it at the dealership. This is an ideal option for those who want to change motorbikes over time.
In addition to offering low-interest rates, bike finance companies offer a range of benefits. Most of them offer home delivery and lower waiting periods, and your EMI will be significantly lower than with a bank loan. You may also receive discounts on services, insurance, and maintenance. This helps you save money and maintain a good credit rating.
When you apply for bike finance, you’ll need to provide some basic information about the bike that you’d like to purchase. You should check the date of construction of the bike to make sure you can qualify for a loan. Most finance companies prefer bikes that are less than 12 years old. Once you have this information, you can choose the repayment term that suits you best.
Bicycles are cheaper than cars, but they are still significant investments. Be sure to set a realistic budget before you begin shopping. Make sure to add up all of your cash assets, as well as your income after taxes. You should also take into account your expenses for the month.