Motorcycle financing – the possibilities
The world of motorcycle models is colorful and diverse. There is a suitable vehicle for every motorcycle passion, either as a new or used motorcycle. Fans of old machines usually buy from specialized dealers or from private customers. The motorcycle dealer is still the first address for brand new motorcycles in various designs.
Motorcyclists have several options to finance a motorcycle:
- Motorbike loan via the dealer’s partner bank as installment loan with down payment or trade-in of the old motorcycle
- Balloon financing through dealers
- 3-way financing through dealers
- Car / motorcycle loan from online banks
- Installment loan for free use
Which variant should be chosen depends on the financial and personal requirements of the customer. The balloon financing is characterized by very low monthly rates and a high closing rate. The 3-way financing enables the motorcycle to be returned at the end of the financing period, a down payment is required and the monthly installments are low, but a higher follow-up payment must also be made if the motorcycle is purchased at the end of the term. These financing options are especially common when buying a dealer. The “normal” motorcycle loan with down payment and constant monthly installments can also be realized via the dealer’s partner bank.
The auto or motorcycle loan offered by direct banks is becoming more and more important for motorcyclists who want to finance a motorcycle, as it can be taken out for every motorcycle, new or used, offers low interest rates and flexible repayment methods. Depending on the bank, the vehicle registration document also remains with the borrower. Any motorcycle can be financed cheaply, because the borrower can act as a cash payer and thus get a hefty discount from the seller. The same applies to an installment loan for free use. Here too the offers are manifold. The explicit motorcycle loan comparison lists the best loan offers and is worth money as a decision-making aid.
Motorcycle finance comparison
The targeted comparison for motorcycle credit online from direct banks is quickly possible with a credit calculator. Enter the loan amount, term and purpose of use and the calculator shows the banks with their relevant conditions, where you can take out a cheap loan for a motorcycle.
A cheap motorcycle loan, as a loan for a used motorcycle or a new model, is characterized by the following conditions, which should be considered in the motorcycle loan comparison:
- No processing fee
- Low, annual percentage rate
- Low, non-credit interest rate
- Possibility of suspension of payments
- Special repayments at any time and free of charge
- Early repayment option without additional costs
The motorcycle loan online proves to be cheap motorcycle financing without a down payment, which is beneficial for borrowers who can neither sell an old motorcycle to provide the money for the down payment nor have savings that can be used for it.
Motorbike financing without fully comprehensive insurance
If you want to finance your motorcycle, depending on your financing partner, you may be faced with the obligation to take out fully comprehensive insurance. Generally, fully comprehensive insurance is not a mandatory prerequisite for obtaining a motorcycle loan.
Fully comprehensive insurance, however, always makes sense, because in the event of accident damage and theft, the financed motorcycle is extensively covered and the borrower has no further costs. Fully comprehensive insurance can be taken out with any insurance company, unless the lending bank ties the loan to taking out fully comprehensive insurance with an insurance partner. Therefore, the conditions of different insurance companies should be compared, because here too there are differences in the amount of the premium and the coverage of the damage. A loan offer from banks that finance a motorcycle without insisting on comprehensive insurance with a partner company is therefore often the cheaper option.
Does motorcycle financing make sense – yes or no?
In order to answer this question realistically, it should be borne in mind that loans are no longer only taken up for urgently needed expenses, which was earlier the case. Life is short, leisure time is scarce and that also puts credit in a completely new light. Hardly anyone has a lot of money left over due to average or even low income and the constantly increasing cost of living to save for years on one goal. Most don’t want that either, because life takes place in the here and now.
A cheap motorcycle loan, the term of which is kept as short as possible and which also adapts to changing living conditions, makes perfect sense in order to fulfill your dream faster. However, a motorcycle should only be financed by those who can actually repay a loan and who do not overestimate themselves financially. This can be found out quickly by a motorcycle credit comparison and a well-founded input / expenditure calculation.
Motorbike financing without a bank
Loan seekers who want to finance a motorcycle, but have little chance of reckoning with banks and credit intermediaries due to creditworthiness or low income, can also consider a motorcycle loan from a private person. This motorcycle financing without a bank is possible through online credit marketplaces like Astro Finance. Private individuals, who are referred to as investors, act as lenders for the loan because they receive a return on interest for their investments. For example, if you want to initiate a used motorcycle financing via Astro Finance, register and submit a loan application on the platform.
However, the creditworthiness is not left out here either, rather the loan interest rate that is applied is based on the credit rating. A low credit rating therefore means a higher loan rate. The advantage of this motorcycle loan without a bank is that private individuals set different standards and the human component also flows into the decision to invest in a loan project. Several investors can bid on a loan application, which significantly increases the likelihood that the required loan amount will come together.