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Frequent Errors Motorcycle Consumers Tend To Make Whenever Shopping For A Motorcycle Loan

Copyright (c) 2006, by Jay Fran.

Regardless if financing rates are currently high or low or it's the closing of the model season with loads of dealership incentives, many motorcycle buyers are inclined to have a misunderstanding while searching to get a motorcycle loan. Typically there are 4 everyday mistakes motorcycle consumers tend to make with motorcycle financing.

1. Looking for a motorcycle before looking for a motorcycle loan.

Lots of motorcycle buyers frequently enter the showroom shopping for a motorcycle before determining how much money a motorcycle loan lender is willing to loan to them for the purchase of a motorcycle. There is not a lot of reason to look at a $20,000 Harley Davidson motorcycle, whenever a lender is only ready to issue a loan amount of less than the motorcycle costs.

In addition, whenever motorcycle consumers enter the dealership showroom polished salespeople often pressure them into motorcycle financing with tremendously higher loan rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or online. Salespeople don't like motorcycle purchasers to leave the dealership in order to get a motorcycle loan. In the salespersons view this just raises the probability of loosing a sale and commission. Thus, salespeople often times try for a quick sale which normally results in pushing motorcycle consumers to get motorcycle loans at the dealership.

The bottom-line is that it is normally best to shop for a motorcycle loan before entering the dealership showroom.

2. Diving into the unknown motorcycle loan.

Motorcycle purchasers many times jump into motorcycle financing that they don't totally understand or even may not be the right choice for them. For example, these days Japanese motorcycle manufacturers more often than not run credit card motorcycle loan promotions on their private-label credit cards. But these promotions typically provide a reduced rate for a very short term like 12 or eighteen months and have a tremendously higher interest rate following the short promotional term. On a private label credit card promotion if motorcycle riders can not reasonable afford to pay off the loan during the short promotion period, then they are generally better with a slightly higher rate on an installment motorcycle loan for a longer term.

3. Borrowing too much.

The most reoccurring mistake the first time motorcycle purchaser makes is not having a clear sense of how much motorcycle they can reasonable afford. This is particularly true for young motorcycle purchasers who look to buy top notch supersport motorcycles. What they neglect to recognize is that financing a $20,000 - $18,000 motorcycle can stretch them to thin, resulting in them having little money to enjoy themselves and the motorcycling lifestyle. They may also have too little money to pay for a insurance policy, motorcycle maintenance, vehicle registration or new accessories for their motorcycle.

4. Not posing the right questions.

The number 1 warning sign that motorcycle purchasers 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 8 questions are a great starting place for motorcycle buyers:

  1. Can the rate increase if a payment is 30 day's late?
  2. What are the document fees to process the loan and how much are the fees?
  3. Are there circumstances that can make the interest rate on the motorcycle loan vary in the future?
  4. What is the maximum term for the motorcycle loan?
  5. Is the motorcycle loan rate fixed or variable? If fixed how long will it be fixed for?
  6. What type of motorcycle insurance is required?
  7. What happens if a payment is ninety days late? Does the rate go up?
  8. How much is registration and are these fees built-in the motorcycle loan?

In general, motorcycle buyers can stay away from these everyday mistakes by spending a little extra time focusing on shopping for a motorcycle loan and inquiring by asking lots of questions to the motorcycle lender.

About The Author:

Jay Fran is an avid motorcycle rider who has has a background in retail loans. Jay particularly loves both cruiser style and racing sportbike motorcycles. Jay is also the developer of motorcycle-financing-guide.com a site which is dedicated to assisting motorcycle riders locate the best motorcycle financing available in the marketplace. Motorcycle-Financing-Guide.com provides help with all types of motorcycle financing including good and instant motorcycle financing, and 72 month motorcycle loans.

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