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.

Jay Fran is a successful author and publisher at http://www.motorcycle-financing-guide.com. A comprehensive resource on how to have the best experience and get the best deal on motorcycle financing, bad credit motorcycle loans, high risk motorcycle loans and motorcycle buying.

---

Motorcycle Protective Clothing That Works!

There is some great looking motorcycle clothing on the market these days, but believe me not all of the motorcycle clothing offers as much protection as you... Read More

Motorcycle Suspension: - A Troubleshooting Guide

Trouble Shooting Suspension Problems.Adjustment locations: ForksRebound adjustment (if applicable) is located near the top of the fork. Compression adjustment (if applicable) is located near the bottom of... Read More

People Are Crazy... and Everyone Is A Racer

?And everyone is a racer. If you doubt that, you've obviously never driven in New York City during rush hour. Look closely at the driver of that... Read More

How Do You Make Your Harley Davidson Look And Feel Like An Extension Of Yourself!

How do you make your Harley Davidson look and feel like an extension of yourself!Do you think maybe it's time to do a little customizing for that... Read More

Auctions and Car Transport: Everything You Need To Know

Everyone has wanted to sell a car at some point and in the age of Internet auctions, there are more options than ever when it comes to... Read More

Frame Slider Design and Selection

Call them crash protectors, crash bobbins, fairing protectors or frame sliders, all these products ultimately seek to do one thing - protect your expensive bodywork or the... Read More

How To Make Your Own Vintage Motor Cycle & Automotive Spare Parts

Vintage Car & Motorcycle restoration enthusiasts all share one thing in common...The difficulty in obtaining obsolete spare parts.How many times have you tried to find a special... Read More

The Motorcycle Helmet You Want May Not Be As Safe As You Think!

Choosing the right Motorcycle helmet can make a difference?.?.literally between life and death. But how does an ordinary guy in the street make an informed decision about... Read More

Motorcycle Suspension Setup: Getting to Grips with a Black Art

Suspension Set-up: The basicsWhether you are a road rider or a racer correct suspension setup is the key to fast smooth riding and consistent lap times. To... Read More

Necessity of Motorcycle Parts

If you are one of the many people who consider your bike as invaluable as your family, then we know you're head over heels. We may be... Read More

Avoiding Excessive or Uneven Front Tire Wear

All rubber tires wear down over time, whether they're on a motorcycle or automobile. However, you want to watch out for uneven or excessive wear, both of... Read More

So You Want To Be A Custom Bike Builder? Start With A Motorcycle Kit!

So you want to be a custom bike builder? Well friend, before you rush out and buy that motorcycle kit, the one that will set you on... Read More

Personal Scooters are Not Just for Fun

Personal scooters are a highly valuable mobility tool for those who, for health reasons, are unable to move around in public or in their own homes. They... Read More

Take Care of Her and Shell Do the Same ( How to start out the riding season)

Has your scoot been sitting in the garage all winter, just dying to be ridden? Or have you had the chance to only get her out a... Read More

Motorcycle Radar Detectors

Standard radar detectors were not built for motorcycles and were never intended to be used on them. Most detectors use an audio device to inform the driver... Read More

Fuel Cells Motorcycles, Trucks, Tanks, ATVs and Fire Hazards from Heat Exchanges

We have heard a whole lot of talk about fuel cells and of course it is a worthy endeavor. Portable generators, cars, transportation industry, Power generators, Ships,... Read More

A Convenient Way to Slash Your Gas Bill

"With oil prices spiraling higher almost every day, people are starting to look for alternative modes of transport," says Michael S. Milstead of Scootertronics. "With scooters, commuters... Read More

Welcome To The World Of ?Upside Down? Motorcycle Loans!

With the depreciation on motorcycles being so enormous after they are driven off the showroom floor, the potential for a buyer owing more on their motorcycle loan... Read More

Save Money on Used Motorcycle Parts

For every motorcycle enthusiast, it is indeed very taxing to maintain bikes as good as new ? its engine running and all its other parts functioning. We... Read More

Yamaha Motorcycles - Creativity and Spirit of Challenge

"If you are going to do something, be the best" Ginichi Kawakami, Yamaha Motor Company First President.Yamaha Motorcycles, under this motto, employing all its creativity, and with... Read More

Know Your Mini Moto

The Mini Moto is a small scale replica of the World Super Bikes used by the likes of Valentino Rossi and ex champion Carl Fogarty. The Mini... Read More

Honda Super Cub and 50cc Honda Cub - The Volkswagen Beetle of Motorcycles!

A very clever design: the Honda Super Cub was the combination of a moped and a scooter. It attracted many people due to its friendly and non... Read More

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... Read More

Women and Motorcycles? You Bet!

To really understand the women and her ride, one needs to go back in history to explore the courageous women who defied the norm and road their... Read More

Ghost Minimoto Moto GP Reps ? What Are They?

What are Mini moto's? A Minimoto is a miniature version of a real GP racing motorcycle; it just doesn't go as fast as one. There pocket bikes... Read More

Liquid Cooled Minimotos (PocketBikes), How Fast Are They and Are They Affordable?

As the latest craze of Minimoto Madness continues in the United Kingdom. The demand for pocket bikes means that the consumer is now looking for more better... Read More