Love the roar that escapes your motorbike as you start it up, and the rush of wind to your head as you ride down a road? How about the strong feel of metal between your thighs that encapsulates your freedom as a rider? Don’t let your motorbike slip through your fingers due to the lack of refinancing. Give it that added boost with these four steps on how to go about refinancing your motorbike.
Compare your loan options
Choosing the right bike loan that understands you is important. If you feel like your current loan is not giving you enough vroom for your bike you can always switch up to something that does. How you go about shopping for your loan can either be a blessing or a bane to your existence. The catch is to look for competitive rates that match the model and the age of your bike, leaving you spoilt for choice. Speaking to a financial advisor can give you better insight in terms of which deals will best suit you. Interest rates on a motorbike loan can range from 5.51% up to 14.19%. If you are concerned that you won’t get a refinancing thumbs up because of bad credit, don’t be. You can speak to your financial lender to ask if they provide refinancing for bad credit. Most lenders do.
Which loan should you opt for?
If your current loan does not do it for you, then you have much more to choose from. There are mainly three types of loans you can choose from which are:
Secured motorbike loans – which means that your lender can hold collateral against your bike if you are no longer able to meet payments. Should you fail to meet payments they will sell the collateral that holds the same value as your loan, and uses the money they make to pay your loan off.
Unsecured motorbike loans – With this loan, you will be paying a higher interest rate because you will have no collateral that you are required to pledge towards the loan.
Personal loans: You can pay off your bike to make it yours with less stress of accruing interest. Plus, you can use a personal loan to pay off your existing bike loan. It’s advisable to always move on to the next loan once you have fully paid off your previous one.
What is the cost of refinancing
Don’t get too lost in the search for constantly finding a competitive rate for your motorbike loan, it can cost you. If you are known for jumping from ship to ship you could be raking up a significant amount of application fees. Ask your lender if you will be charged any fees for your loan. Furthermore, look for any early repayment fees and ongoing fees. Both can put a bump on the road for you clenching your new loan. Ongoing fees can offset the lower rate that is being offered by your new loan.
Leave no loose ends
Before you make a move to finding a new loan try to make sure that you leave the old one not owing anything. You can use the new loan to consolidate your debt on your old one, but there are a few things you will have to keep in the back of your mind. Always consider the features of the loan when refinancing. For example, what the effects of you moving from a variable rate loan to a fixed rate loan? Look at the finer details of the loan. By all means, take your time; reassess your reasons for needing a new loan, as this will be a big decision to make.