Motorcycle loans are a particular type of loan designed for those who want to buy a new, used or zero-mile bike. Among the motorcycle categories for which financing can be obtained, scooters, scooters and other motorcycles are also included.
The Conditions and the methods for starting a motorcycle loan
Motorcycle loans typically belong to the category of targeted loans. The applicant will not directly dispose of the sum obtained, as it will be paid directly to the company or to the partner retailer to whom one turns for the purchase of the motorcycle. The applicant will then return the loan in the number of installments established. Usually, dealers and dealers have agreements with some specific financial companies and direct customers directly to the request for financing.
When the vehicle is purchased, the customer can sign up for the motorcycle loan directly from the retailer, which will provide him with all the necessary information and guide him in carrying out the procedures. In most cases, the financial institutions affiliated with retailers are inclined to favor the practices deriving from the purchase of new motorcycles or mopeds, rather than used ones.
As an alternative to the financing stipulated in the dealership, the customer can request a motorcycle loan in the form of liquidity. The choice of such a loan in this personal form certainly offers great freedom, both as regards the amount to be requested and the period of installment, and for the use of the amount disbursed. In this case, in fact, it will not be necessary to justify your loan request (by communicating the data relating to the purchase) and you will be able to dispose more freely of the money granted by the bank, using the loan to also cover any additional expenses such as example, those concerning insurance. Also the repayment period, and therefore the number and amount of the installments will be variable in relation to the choice and one’s own economic possibilities.
Guarantees necessary to obtain motorcycle financing and the elements that make up the contract
To obtain a motorcycle loan it is necessary to provide the guarantees generally required for all other types of financing, such as a stable source of income (demonstrable through one’s own payslip, tax return or pension) and a good credit standing.
The verification of the data takes place at the risk control center, a body responsible for reporting bad payers and defaults. In the event of any negative reports, the financial company may decide not to grant any loan. Often, in order to limit the risk of insolvency, credit institutions require the signature of a co-obligor or a third guarantor as a guarantee, guaranteeing the success of the transaction. This is a rather common request, in the presence of particular conditions (such as an applicant with a recent seniority or a particularly high amount).
The amount disbursed varies according to the bank to which one is addressing, as well as the repayment time for the motorcycle loan, which generally cannot be less than six months. The amortization plan is established by the lender with the consent of the client when signing the contract.
The elements of the contract are composed of the following elements according to the law: interest rate applied; any other price and condition applied including the higher charges in the event of default; the amount and methods of financing; the number, amounts and expiry of the individual installments; the annual percentage rate of charge (APR); the detail of the analytical conditions according to which the APR can possibly be modified; the amount and purpose of the charges that are excluded from the APR calculation; any additional guarantees required such as, for example, insurance.