Loan for motorcycle

A new engine quickly costs tens of thousands of euros. Do you not have enough savings to buy a motorcycle? Borrowing money for a motorcycle is then a good option. What options do you have for a motorcycle loan and what do you need to pay more attention to for a loan for your motorcycle? has details

Loan for motor

Loan for motorcycle

First of all it is important that you choose the right loan form. You have the choice between a personal loan and a revolving credit.

Borrow money engine – Personal loan

Borrow money engine - Personal loan

A personal loan is the most suitable form of loan. After all, you know exactly how much money you need. A personal loan has a fixed interest rate and duration. Re-taking amounts already repaid is impossible, so you have the guarantee in advance that you will have repaid the loan after a previously discussed period. This way you can easily match the duration of the loan to the life of the engine and you avoid paying for a loan from an engine that you no longer drive.

Motor loan – Revolving credit

Motor loan - Revolving credit

You can also finance your motorcycle by taking out a revolving credit. A revolving credit has a variable interest rate. Within the agreed credit limit you can withdraw, repay and withdraw amounts. As a result, the revolving credit has no fixed term, so you cannot adjust it to the life of your motorcycle. On the other hand, the interest rate of a revolving credit is usually slightly lower than the interest rate of a personal loan.

Installment Motor – Lease

You can also purchase or lease the motorcycle on installment. In the first case you do not have to pay the purchase amount at once, but spread the payment over a certain period. For example, you pay the motorcycle seller a certain amount every month, until you have paid off the motorcycle. Keep in mind that the interest on an installment purchase is often higher than the interest on a personal loan or revolving credit. Finally, leasing is an option. When you lease a motorcycle, you actually rent it. The leasing company makes the engine available to you during a certain period at a certain price.

Are you interested in an installment purchase or lease? Then ask the seller of the engine about the possibilities.

Borrow money for motorcycle – How much should you borrow?

Borrow money for motorcycle - How much should you borrow?

After you have made the choice for a loan form, you calculate how much you actually want to borrow. Various factors influence the amount of the loan. Think of the purchase amount of the motorcycle itself, the trade-in value of your old motorcycle, the amount you put in yourself and any accessories and / or motorcycle clothing. The table below shows how you calculate the amount of your loan amount.

Table 1: Calculate loan amount Example
Purchase amount of the engine 15,000 euros
Motorcycle clothing and / or accessories 1,250 euros
Total costs 16,250 euros
Trade-in value for old engine 2,000 euros
Own investment 3,250 euros
desired loan amount 11,000 euros

Loan for motor? Also pay attention to the insurance!

Once you have purchased the motorcycle, you must immediately take out insurance for this. If you are financing your motorcycle with a loan, it is important to opt for extensive coverage. If irreparable damage occurs, you will continue to pay for the loan if the coverage is insufficient, while you cannot drive the motorcycle anymore.