Posted by admin on July 22nd, 2007 — Posted in Motorcycle Loans
The interest calculation your lender uses can make a big difference in your situation, especially in the first 18 months. There are two primary interest calculations, pre-computed (combined with rule of 78) and simple interest.
Pre-computed interest combined with Rule of 78, is typically the worst situation for a buyer because most of the interest is paid in the first 24 months. Therefore, in the first 24 months little of the monthly payment has gone towards paying down principal.
If a buyer wishes to sell or trade in the motorcycle within this timeframe they will likely find themselves owing more than the bike is worth. Statistics show that the average owner trades in every 18-24 months.
Simple interest on the other hand, is much more favorable for buyers since interest accrues on the balance of the loan. However, buyers that extend their loans for greater than 48 months can still find themselves up side down with simple interest. This is especially true if a down payment is not made. The reason this occurs is that the motorcycle depreciates faster than the principal is paid; leaving the balance owed to the lender to be more than the bike can be sold for.
A common view that many people have is that they will just surrender their motorcycle to the lender if they are caught in an “up side down” position. If you are considering this option don’t! Your worries do not just end after your bike is surrendered or repossessed; in fact they are just beginning. The lender will sell your bike at an auction for much less than it is worth. You will still owe the difference between the amount you owed on your loan and the amount the motorcycle sold for at auction.
So if you owe $5000 and the bike sells for $1500, you still are responsible for owing the lender $3500. To make it worse lenders may tack on hefty auction fees which you will owe as well. So the net result is that you are now responsible for making monthly payments on a bike you can no longer ride.
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Posted by admin on July 18th, 2007 — Posted in Motorcycle Loans
Riders around the world are now choosing scooters over motorcycles for different reasons. First off, motorcycles cost more to run, and cost more to by, due to the need for a motorcycle loan.
Electric scooters are mostly preferred by young children for local runs for quick and easy work with fun. The electric motor-scooters are the most low-cost and convenient mode of transportation.
They can be parked anywhere and can make it through the narrow lanes with very little hassle.
There are many types of electric scooters manufactured all over. Some motorbikes have a seat and pedal activated with sense. Some scooters do not have seat or attenuate and are controlled with prevent.
These types of scooters are specially for young children who have to stand on the bike-rest and ride. Also there are scooters specially made for physically unqualified neighborhood. The electric scooter is a great giftedness for seniors or disabled people who cherish on others for their care and entertainment, as the electric scooters have now helped Old Guard* gain their rights again. These types of scooters make them feel like they actually have their legs working again.
They can now get a glass of water from the system* and go out and get the morning newspaper or even take the dog for a walk. These types of scooters are totally battery operated and can be started by pressing a button. Nevertheless, the speed of such scooters is very low.
From amongst numberless kinds of other electric scooters available in the market, there are some scooters made for power riding. Such scooters can go up to 7-8 kms at just 18-20 kph speed limit. Some motorscooters looks like a moped with features like keyed pop, quick-relate battery cable packs and state-of-charge indicators in different models.
Further these, there are also foldable minibikes available. These scooters can be folded and can be either abstracted in the car, bus and train when you do not want to ride or can be dragged by their wheels if the battery runs overthrow. These mountain bike scramblers are very plight faith and so can be stored in a corner of your room in folding position.
Other electric scooters available are the little ones* appearing like the Italy made Vespa scooters that run with gasoline station. These scooters can actually be called as sick repro* of Vespa scramblers. However, there is much difference between these two motorscooters. The electric scooters are overextend oneself light weight compared to motor scrambler because the electric motorscooters have no redouble activated contrivance sound motor scooter.
The body of electric scooter is become engaged than that of the motor scooter. The electric motorbike can run up to the maximum up-to-date of 30kmph. The electric scooters possess all the rest of the rundown like of sense scooter; sparkler*, horn, throttle, braking through control cables.
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Posted by admin on July 15th, 2007 — Posted in Motorcycle Loans
First of all, understand that too often then not, in the arena of motorcycle loans, I see bikers with bad credit concentrate more on approval for motorcycle financing, instead of making a good decision for their financial future.
As a consequence, when the typical motorcycle buyer with bad credit is approved they are often stuck with hefty fees, and backend products that leave them paying much more for their motorcycle than they should.
If you have bad credit and need a motorcycle loan, the best advice I can give you is do not let someone tell you that you have to pay document fees, extended protection, Gap insurance or other add on products to get approved. Sure you may have to sacrifice for a higher interest rate on your bad credit motorcycle loan, but you do not have to get taken to the cleaners with a bunch of other fees.
Are bad credit motorcycle loans possible? This is a question I am asked over and over again, whether it is just meeting a person on the street or though e-mail from a person that found my motorcycle financing website. 
Well the short answer is yes bad credit motorcycle loans are totally possible even if you have a bankruptcy on your credit report. However, there are certain things you need to consider before looking for a bad credit cycle loans because you can be taken advantage of just because you have bad credit.
It is the above reasons that it is important to try to sometimes go straight to the lender and find a lender that will finance bad credit motorcycle loans. I am not going to tell you that it is easy to get approved like if you had good credit but if you work a bit you can find motorcycle lenders specializing in bad credit. Here are some options you may want to consider.
I. Personal Loans: Many people with bad credit tend to many times go for personal loans. I only recommend this option as a last resort, but I would much rather a bad credit applicant get the credit straight before getting a personal loan. The reason being is personal loans typically have very negative terms for motorcycle buyers and they can sometimes have interest rates in the 30% range. This is not a good situation for a motorcycle buyer.
II. Online Motorcycle Lenders: The nice thing about working with online motorcycle lenders is that you are going directly to the lender and there is no middle man involved with placing you in a loan that may put you in a bad situation. Going directly to the lender for bad credit motorcycle loans is always better in my opinion because the lender does not want to place you in a loan you will default on. On the other hand, going through a middle man you will find the middle man will want to place you in a situation where they will make the most money which could be a very bad loan for you.
III. Local Banks: Sometimes local banks can be an option for finding bad credit motorcycle loans, but typically they are stricter than Credit Unions. So check with your online motorcycle lender or credit union before going to a local bank. But similar to a credit union, local banks probably do not have a ton of their loans in motorcycles so this helps you chances of getting approved sometimes. Many times the less experience a bank has with motorcycle loans the better for you because they can sometimes evaluate bad credit motorcycle loans the same way as a car loan which typically is much more lenient.
IV. Credit Union: Your local credit union may buy bad credit motorcycle loan more often than the average loan at a dealer because the credit union only has a small percentage of its overall loan portfolio in bad credit motorcycle loans. This allows them to control losses a bit better than a dealer because they have other thinks finance not just motorcycles. So they may approve bad credit motorcycle loans a dealer will not touch.
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Posted by admin on July 7th, 2007 — Posted in Motorcycle Loans
This is a pretty decent article for those looking for motorcycle financing, and on their way to buying a new bike.
Article….
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 $19,000 Harley, if a lender is only willing to provide a loan amount of $9,000.
Also, 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.
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 Enquiring Deep Enough
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?
Basically, 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.
Jay Fran is a successful author and publisher at 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.
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