Are you planning to buy a motorcycle but don’t know where to start? You need to do proper research for the perfect motorcycle because if not then you may end up buying the most expensive ones that don’t suit your needs. Instead, rationalize your desires when getting the best motorcycles in Singapore. You can look at some motorcycle loan being offered by financial institutions or ask a licensed moneylender for better financing options. A proper research before shopping a motorcycle will help you save from unnecessary spendings.
What Is a Motorcycle Loan?
It is very similar, if not the same, as a car loan. This is in which one applies for a lump-sum amount of money from a lender to purchase a motorcycle. As commonly known when getting motorcycle loans, one is expected and bonded with the loan tenure that you have applied for repayments.
3 Important Reminders Before Making Your Purchase
1. Apply for a motorcycle loan
Not only will you need to apply for a motorcycle loan, it is best to apply for one even before you go into a showroom and window shop.
What usually happens is that salespeople in showrooms will convince, borderline forcing you to subscribe to the motorcycle loans that they collaborated or have partnered with. In which, in many cases, these motorcycle loans that you often get from your salesperson are those with very high interest rates.
Also, a lot of it is presented with a huge figure to call you in, when you do not even need that much. Rather, make your research and look into the motorcycle financing terms and conditions as well as the amount offered by licensed moneylenders, banks, governmental bodies, and credit unions. These institutions’ services have been proven to be righteous with time.
2. The application process for your motorcycle loan from the most suitable lender
Even though there are many out there that provide a motorcycle loan, not all of them will suit everybody’s needs. Hence, you will need to not only search for it and instantly make up your mind, it is best if you can completely comprehend the motorcycle financing terms and conditions upon application process, receiving as well as repaying because all of these phases will affect you greatly when you are not properly informed.
As an example, now we frequently witness producers having a promotion for motorcycle loans that offer a lower interest rate and down payment. Certainly, this will attract many prospective clients, especially the young ones who are making the first purchase for their motorbike SG. However, this low-interest promotion usually only lasts up to 24 months.
Later, buyers will need to endure higher interest rates to cater to the voided amounts you have been paying less for the first 2 years or more. Remember that you need to read and understand every single financing option, terms and conditions laid down by the motorcycle dealers or moneylenders that will cover the financing of your SG bikes.
3. Only apply for what you need
When applying for a loan, always keep in mind that you don’t need to be swayed by too much sales talk. Make your research first on which motorcycle is best suited for your needs. Check your credit score, financing options, and check which motorcycle loan has the lowest interest rates. This way you’ll save a lot of money when it comes to the loan payments. It is very important that you consult with someone with experience, especially if you are a first-timer.
If you are aiming for a more expensive motorcycle, then apply for the best motorcycle financing that accommodates the price of your motorbike. Remember to have a good credit score for the motorcycle financing to get approved.
Hence, this is not only the reasoning of applying for what you need in terms of the monetary aspect, it is also about buying a motorcycle with a power that suits your needs.
Important Things You Should Ask Your Lenders Before Applying:
• Whether or not the interest rate is fixed or varied
• The possibilities of any changes in the interest rate in the future
• Consequences for a late repayment
• Period of time one will endure the financing loan term
• The amount of down payment required to apply for the loan
• The requirement of full coverage insurance (if any)
• Registration fees (if any) and if it will be included with the motorcycle loan
• Administrative and other hidden fees when applying for the loan
Mistakes To Avoid When Making Your Purchase:
1. Avoid using your credit card when you buy a motorcycle
Credit card terms and conditions are known to have quite high-interest rates. Not only that, but you will also face merciless penalties for failure of repayment and an overdue repayment. Credit cards are known to be expensive in the long term, and motorcycle financing is a way better substitute especially when it comes to financing payment.
In turn, your debts with your bank will accumulate, without you knowing. Worst comes to worst, it will result in your credit score to go downhill – which is something that you certainly do not want to happen because in any case that you default, your credit report will tell. Hence, it will be harder for you to apply for other loans in the future.
2. Do not make your house as a collateral
This move is extremely risky. If you have a strong ground of still wanting a secured loan, consider something else as collateral. A lot of motorcycle financing options don’t need to have collateral as well, it will depend on how much you want to pay for the down payment. It is never a smart act to risk your shelter for a vehicle.
As an alternative, you may want to use your investments and stocks as your collateral, or even your savings account and upcoming paychecks. With that said, if you are on the search for a shorter term and lower interest rate to purchase a motorcycle, you can consider a personal loan from a licensed moneylender in Singapore to aid you in your motorcycle financing loans, look nowhere else – Raffles Credit is always at your service.
You may visit their office building, call them up for further inquiries or visit their personal loan page.