We generally talk a lot about car credit and little about motorcycle credit. This is obviously because the need for finance is generally lower, and the production of this type of credit is much less.
The fact remains that even if many 2 wheels are bought “in cash”, some require consumer credit, and this is all the more true for large displacements.
What is the best motorcycle credit?
Credit organizations offer two solutions to finance motorcycle credit. Either an assigned credit or a “personal” consumer credit.
Favor the affected credit!
Our first recommendation is to give priority to taking out an “assigned” consumer loan. Not only is the rate generally lower than for conventional consumer credit, but the process can also be simpler. Once the bike has been chosen, you will ask your dealer if the purchase can be made on credit. The big concessions are usually in partnership with credit organizations, they will offer you the direct subscription to a credit. For this, a certain number of information and documents will be required. Once acceptance is obtained, your motorcycle will be ordered. Upon receipt of your motorcycle, you will become the owner and begin to reimburse the installments the following month.
The only flaw in this method of taking out a loan, you will have noted, is the absence of a comparison step. The concessions are in partnership with a single credit organization and will direct you automatically to the latter. In addition, they will generally receive a commission for “business contribution”, because not only do they bring them a credit contract, but at the same time a potential new customer to whom many products and appointments will be offered.If the proposed rate is lower than that found in the comparator, do not hesitate, subscribe and take advantage of your new steed (without forgetting that a credit must be reimbursed).
If the proposed rate is higher
We advise you not to necessarily go through your dealer, and to contact directly the best of banks as well as your usual agency which knows you well, and which will be able to make you a counter-proposal.
The process will then be a little more complex, since you will have to apply for a “motorcycle loan” based on a quote from the dealer. The bank will then make you a proposal, and it is on this basis that you can place an order. Once the invoice is obtained, the bank will release the funds and you will pay the dealer yourself.
Study consumer credit rates
Our second recommendation is to use the “unrestricted” personal loan. The rate is generally higher, because in the event of non-reimbursement or partial reimbursement, the bank has no collateral. She cannot therefore request the seizure of the vehicle and collect the proceeds of its resale.
You therefore do not go through your dealer to subscribe and do not provide any proof of purchase.
You determine at your convenience the amount of the loan. You can therefore include various options and the purchase of essential accessories, such as helmet, gloves and padlock if you do not already have them.
What do you need to make a motorcycle loan?
You will generally be asked for the following documents to constitute your file:
- The presentation of an identity document or the sending of its photocopy,
- One to three pay slips,
- Sometimes proof of address,
- A bank identity statement in the event that you request funds from a credit organization (without going through the concession).
What other alternatives to credit?
You may already be in debt on consumer credit or mortgage, and do not want to go into debt again or dip into your savings.
In this case, you have the option of renting your motorcycle via two options. Rental with option to purchase (LOA) or long-term rental (LLD). We wrote a previous article on this subject, which we invite you to consult. The main difference between the two is that in the first case, you can acquire the motorcycle at the end of a rental period determined in advance, while in the second case, you must return it to the organization with which you made the subscription.
Don’t forget the zero-rate motorcycle loan!
We often forget, but manufacturers sometimes make offers of motorcycle credit at zero percent. It depends on times of the year and their inclinations to increase their sales and face their competitors.
Our last piece of advice (especially if you are not attached to a particular brand) is to find out about these current or future promotional offers.