Familiar Errors Motorcycle Buyers Make Whenever Looking For A Motorcycle Loan

Posted by Nick Niesen on November 8th, 2010

Whether motorcycle financing rates are currently up or down or it?s the end of a model year with plenty of dealership incentives, many motorcycle consumers tend to make the same mistakes while shopping for a motorcycle loan. More often than not there are four frequent errors motorcycle buyers make with motorcycle financing.

1. Plunging into the unknown motorcycle loan.

Motorcycle riders typically enter into motorcycle loans that they do not completely comprehend or even might not be the right option for them. For instance, in today?s age Japanese motorcycle makers often offer credit card motorcycle financing promotions on their private-label credit cards. But these promotions generally offer a low promotional interest rate for a very short term like twelve or 24 months and have a much greater interest rate following the short promotional term. On a private label credit card promotion if motorcycle buyers can not reasonable afford to pay off the loan during the short promotion period, then they are more often than not better with a slightly higher rate on an installment motorcycle loan for a longer term.

2. Searching for a motorcycle prior to searching for a motorcycle loan.

Many motorcycle buyers frequently enter the showroom looking for a motorcycle before determining how much money a motorcycle financing lender is willing to loan to them for the purchase of a motorcycle. There is little need to look for a fifteen thousand dollar Harley motorcycle, if a lender is only prepared to approve a loan amount of less than the motorcycle costs.

Furthermore, once motorcycle riders enter the dealership showroom polished salespeople many times pressure them into motorcycle financing with tremendously higher financing rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or on the internet. Salespeople do not like motorcycle riders to exit the dealership to get a motorcycle loan. In the salespersons mind this simply enhances the likelihood of not getting a sale and commission. Consequently, salespeople more often than not attempt for a speedy sale which ordinarily results in pushing motorcycle buyers to get motorcycle financing at the dealership.

The bottom-line is that it is always best to shop for a motorcycle lender before entering the showroom.

3. Borrowing too much.

The most familiar mistake the 1st time motorcycle purchaser makes is normally not having a clear sense of how much motorcycle they are able to afford. This is especially the case for young motorcycle riders who look to purchase the most advanced sport bikes. What they often time neglect to consider is that financing a $20,000 - $17,000 motorcycle might hurt them financially resulting in them having small amounts of money to enjoy themselves and the motorcycle rider lifestyle. They might also have too little cash in order to pay for insurance coverage, maintenance, vehicle registration or new accessories for their motorcycle.

4. Not posing the right questions.

The first warning sign that motorcycle riders should see is that if they do not understand the type of motorcycle loan. If this occurs then they should be extra sure to ask a lot of questions.

The below question can assist in pointing motorcycle buyers in the right direction:

? Can the rate increase if a payment is thirty day's past due?

? Are there circumstances that can force the rate on the motorcycle loan change in the future?

? Is the interest rate fixed or variable? If fixed how long will it be fixed for?

? What are the motorcycle insurance requirements?

? What happens if a payment is sixty days past due? Does the interest rate go up?

? How long is the term on the motorcycle loan?

? What additional fees are required on the loan and are these fees incorporated the loan?

? Does the lender charge any specific document fees to process the motorcycle loan and how much are the fees?

In a nutshell, motorcycle riders can prevent being subject to these frequently repeated errors by directing their attention to shopping for a motorcycle loan and ensuring that lots of questions are asked to the motorcycle lender about the loan.

Copyright (c) 2005-2006, by Jay Fran. This article may be freely distributed as long as the copyright, author's information and the all active live links with anchored text in the article are published.