How to Apply for Motorcycle Finance in Australia

by Anish George Head of Online Grocery Store

Motorcycles have always been exciting because of the sense of freedom and thrill they offer. Australia has constantly seen a rise in the registered motorcycles. The motorcycle industry saw a robust growth of 55.16% in the first half of 2020 despite the COVID-19 pandemic.

While the scenic beauty of Australia offers some of the best rides, there is usually confusion on how to apply for Motorcycle finance in Australia. Let us find out the answer:

1. Finalize your budget and look for the bikes:

Before going to the showroom, one must be aware of their budget. One should have done their research on the available models in the market too.

The costlier the bike, the heavier will it be getting Motorcycle finance in Australia. So, it is imperative to stick to your budget.

2. Get your credit report:

Motorcycle finance in Australia are considered riskier by insurance companies. Therefore, it is necessary to provide a clean credit report and a high credit score.

Get your credit score and ensure that it is accurate and updated. If you have previous loans, ensure that the installments are paid. A credit score of above 700 will help you get a loan application approved quickly.

3. Find the best option available:

There are various ways to get Motorcycle finance in Australia. Some of the sources are listed below:

Bank or Credit unions: Banks and Unions can provide stable, long-term loans with reasonable interest rates. The better the credit score, the better will be the loan offers. These are usually secured loans.
Dealership: While buying a bike from a dealership, one can get a loan from the same dealership too. It is usually hassle-free and convenient. Bike and loan both are available in the same place. Although, the interest rates are generally higher.
Personal Loan: One can also consider an unsecured personal loan. In this, one doesn’t need to mortgage their property as collateral. In case of default, the installments are deducted directly from the person’s salary.

Interest rates are higher, and the risk involved is also higher. Also, for this type of loan, the assessment criteria are usually tougher.

4. Apply and ride:

Apply for the loan from the source that suits you the most from the above list. Once the loan is approved, you can buy your favorite motorcycle.