Car News Articles 
 Alternative Fuel Vehicles
 Automotive Articles
 Car Buying Tips
 Car Insurance Articles
 Car Maintenance
 Car News
 Car Racing
 Car Repair
 Car Safety
 
 Driving Economically
 Environmental Issues
 Exterior Car Care
 Garage Know How
 
 How Car Stuff Works
 Motorcycle Articles (68)
  Motorcycle Information (5)
 Road Trips
 Traveling with Kids
 Younger - Older Drivers
 
 Amsoil Synthetic Oil
 Article Archives




spacer
spacer
Motorcycle Articles



Common Mistakes Motorcycle Buyers Make When Looking For a Motorcycle Loan

Whether interest rates are high or low or it’s the end of a model year with lots of incentives, motorcycle buyers tend to make the same mistakes when shopping for a motorcycle loan. Here are four common mistakes motorcycle buyers make with motorcycle loans.

Shopping for a motorcycle before shopping for a motorcycle loan. Many motorcycle buyers enter the showroom looking for a motorcycle before they determine how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is no need to shop for a $20,000 Harley Davidson motorcycle, if a lender is only willing to provide a loan amount of $10,000.

Additionally, once motorcycle buyers enter the showroom slick salespeople often pressure them into motorcycle loans with much higher internet rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or online. Salespeople do not like motorcycle buyers to leave the dealership to get a motorcycle loan. In the salespersons mind this only increases the chance of loosing a sale and commission. Therefore, salespeople frequently try for a quick sale which normally 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 loan before entering the showroom.

Diving into the unknown motorcycle loan. Motorcycle buyers often jump into motorcycle loans that they do not completely understand or may not be the best alternative for them. For instance, in today’s age manufacturers frequently run credit card motorcycle loan promotions on their private-label credit cards. But these promotions typically offer a low interest rate for a short term like 12 or 24 months and have a much higher interest rate after the short promotional term. On a credit card promotion if motorcycle buyers can not afford to pay off the loan during the short promotion period, then they are typically better taking a slightly higher interest rate on an installment motorcycle loan for a longer term.

Borrowing too much.

The most common mistake the first time motorcycle buyer makes in not having a clear sense of how much motorcycle they can afford. This is especially true for young motorcycle buyers who look to buy the top sport bikes that cost up to $10,000 - $15,000. What they fail to realize is that financing a $10,000 - $15,000 motorcycle can stretch them to thin, resulting in them having little cash to enjoy themselves and the motorcycling lifestyle. They may also have too little cash to pay for insurance, maintenance, registration or new accessories for their motorcycle.

Not asking the right questions.

The first warning sign that motorcycle buyers should see is that if they do not understand the type of motorcycle loan, then they should be sure to ask a lot of questions.

Here are some good questions to ask:

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

• Are there circumstances that can make the interest rate on the motorcycle loan change in the future?

• What happens if a payment is 30 days late? Does the interest rate increase?

• What happens if a payment is 60 days late? Does the interest rate increase?

• How long is the term on the motorcycle loan?

• If the loan is an installment loan, does it use rule of 78 or simple interest? (Simple interest is always better because it does not penalize the motorcycle buyer if the loan is paid off early.)

• What is the down payment requirement to get the motorcycle loan?

• Is full coverage insurance required?

• How much is registration and are these fees included in the motorcycle loan?

• Are there any administrative fees to get the motorcycle loan and if so how much are the fees?

Overall, motorcycle buyers can avoid these common mistakes by spending a little extra time focusing on shopping for a motorcycle loan and asking lots of questions.

Copyright (c) 2004, by Jay Fran This article may be freely distributed as long as the copyright, author's information and an active live link to http://www.motorcycle-financing-guide.com is published with the article.

A complimentary copy of any newsletter or a link to the site where the article is posted is greatly appreciated.
Article Source: http://EzineArticles.com/







Related Articles:
HOG - Harley Owners Group
Five Tips For Motorcycle and ATV Maintenance
Motorcycle Road Trip Tips
Monster Energy Supercross Motorcycle Competition
Tips To Prevent Motorcycle Theft
Top Motorcycle Insurance Tips
More Than Just Green: All-New Electric Motorcycle
Clint Bowyer on Motorcycle Safety
A Unique Way to Experience America
Good News For Maryland Motorcyclists
Even At 105, Harley-Davidson Continues To Attract New Riders
Cruising The Great Outdoors Top Destinations For Motorcycle Riders
Stay On The Road To Motorcycle Safety
Opting for Two Wheels Has Never Been Easier
Radar Detectors on motorcycles? Yes you can....

spacer
sdg
make image
model image
zip code


Stay Updated!


Motorcycle Articles
Related Articles
Motorcycle Spring Awakening
Be Mindful Of Motorcycles
Are You Ready To Purchase
Zero Motorcycles Who Are They?
The Mansory Zapico
HOG - Harley Owners Group
Five Tips For Motorcycle and
Motorcycle Road Trip Tips
Monster Energy Supercross Motorcycle Competition
Tips To Prevent Motorcycle Theft
Top Motorcycle Insurance Tips
More Than Just Green: All-New
Clint Bowyer on Motorcycle Safety
A Unique Way to Experience
Good News For Maryland Motorcyclists
Even At 105, Harley-Davidson Continues
Cruising The Great Outdoors Top
Stay On The Road To
Opting for Two Wheels Has
Radar Detectors on motorcycles? Yes
spacer

Feed Button



Car Insurance Info | Newsletter | Car Classifieds | Online Car Rentals
Auto Pictures | Link To Carjunky.com



Complete List of Article RSS News Feeds


Copyright © 1999 - . CarJunky® All Rights Reserved.