Finance for a bike

bakes0310

bakes0310

bakes0310

Soldato
Joined
22 Oct 2004
Posts
13,628
Never done finance for anything, but if i want to get my dream bike i may have to go down that route. Has anyone done it before, and would you recommend i go down that route or not?
I know that dealers usually have a 0% finance 2 year option, im guessing thats the best way or should i be looking at going to my bank?
 
depending on your credit rating then defiantly go for the 0% as you pay nothing, whereas if you were to take the loan from the bank then you would have to pay anywhere from 7%ish up to 30% of the remaining amount every year!
 
As I understand it your credit rating is actually improved by taking out loans, cards etc and actually paying them off. So if you imagine starting at 0 you'd be at 5 if you'd been a good boy, -5 if you'd... not. Others with more knowledge please add!

Dealer 0% is obviously your best bet though if possible. I'd still suggest putting down as much in cash as possible though, just to minimise outgoings and repayment term.
 
If I was to ever buy new I'd be looking at a 0% finance deal also. Your only potential stumbling block may be the fact you don't have a credit rating if you've never borrowed any money.

If so you need to start using a credit card and paying it off so you build up some credit history.
 
I tried to get a bike out on finance last year, had started my first ever job (co-op .. woop, woop -.-) and got refused as at the time they had nothing to know if i was, as griffo put it a good boy or a bad boy.
 
You may find it harder to get credit if you have never had it before but as you're securing it against a bike you should be fine. Just as long as you are registered on the electoral roll, had your job for a set amount of time etc

Regarding 0% apr deals these are sometimes best, but often they bump the initial price up to make up for the loss and then do not budge on price as they hide behind 'well it's 0% apr so you're saving' rubbish.

You may find this link helpful.

EDIT: Also, if you do end up paying interest always make sure they quote you in APR not Flat rate, if they will only give you a flat rate % then times it by two and that will be the rough APR. i.e. 6% is roughly equal to 12% APR.
 
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I got my YZF-R125 on 0% over three years, finished paying it off this month :D I needed my mam to sign as a guarantor to get the finance though.

Assuming it's a 0% deal, means it is probably a brand new bike, if that's the case your obviously pay more for that, and there's less room to negotiate for a cheaper deal.
 
There were some crazy deals/incentives at the MCN bike show back in Feb, R6/R1's (last years models) £1000 deposit and 5 years 0%!!

(The other offers were a free R125 with new R1's, just have to keep eyes open, be in right place at right time.)

Being the back end of winter that was a good deal. What you lose in depreciation you gain in 0% as if you took out a bank loan you'd up paying more, swings and r'bouts etc.

I've only every bought a brand new bike the one time, in '99 a CBR600Fx. For me it was peace of mind, paying the extra for new meant no worries about stolen recoveries/ringers plus warranty.

Just go for it, look at the glorious summer you're missing out on! :D
 
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