If you’ve got bad credit, it’s natural to assume you’ve little chance of qualifying for motorbike finance.
Away from the usual High Street banks and lenders, there’s an entirely different type of motorbike finance specialist for the real-world customer. In general, poor-credit vehicle finance is becoming more accessible than ever before, as the more dynamic lenders on the market acknowledge how difficult it can be to maintain a flawless credit score.
Hence, if you need motorbike finance and your credit report isn’t up to scratch, it might not be the end of the world after all.
How to Get Motorbike Finance with Poor Credit
The process of getting yourself set up with a decent motorbike finance deal really couldn’t be easier. You probably won’t have a great deal of luck on the High Street, so you’ll need to set your sights elsewhere.
Here’s a step by step guide to getting a great motorbike finance deal, even if your credit score isn’t up to par:
1. Calculate your budget
First of all, you’ll want to use an online vehicle finance calculator to work out exactly how much you need and how much you can afford to borrow. Decide on your ideal repayment period, ensure you’ve got the means to keep up with your repayments and get a feel for the options available.
2. Contact a broker
Rather than applying for finance with one specific lender directly, it’s far better to take your business to an independent broker. This way, you’ll have the opportunity to compare deals from dozens of mainstream and independent lenders alike, in order to find the ideal motorbike finance package to suit your budget and your requirements. Best all, an independent lender will help you determine whether or not you’re eligible for motorbike finance, without risking further damage to your credit score.
3. Await a decision
You’ll most likely receive an initial decision right away, after which a formal and final decision will usually be made within a couple of days. Even at this stage, you’re not under any obligation to go ahead, unless you wish to do so. When the decision comes through, you’ll be presented with the best motorbike finance offers available and can make your choice accordingly.
4. Sign the Contract
The services of an independent broker can also be useful when the time comes to sign the agreement. This will ensure you’ve an extra pair of eyes to go over the details and the expert knowledge needed to make sense of its terms and conditions. If it’s not a suitable contract or there’s a better deal out there, your broker will advise you as such.
5. Collect the keys
Once the funds have been successfully transferred to the seller or dealership, you’ll be free to collect the keys and hit the road on your dream bike. You won’t technically be the owner of the bike for the time-being, but you’ll take possession of it right away and for the duration of the repayment.
6. Repay the loan
After which, it’s simply a case of meeting your repayment obligations on a monthly basis, until you’ve repaid the loan in full. Depending on the type of motorbike finance agreement you entered into, you’ll either automatically become the owner of the bike at the end of the repayment., or you’ll need to pay a final ‘balloon’ payment to take ownership of it. That is an important detail that’s worth discussing with your broker, before signing into your motorbike finance agreement in the first place.