Are you planning on buying the motorcycle of your dreams? If so, then you should know that it’s much easier nowadays to do just that. Many banks and money lending agencies are more than willing to finance your motorcycle through specialized vehicle loans sure to fit your budget. So no matter how much you earn with your every paycheck, the two-wheeled beauty that you’ve always been drooling over is right within your reach.
With that said, should you decide to go with a personal or vehicle loan to purchase your motorcycle, remember that you will need to be diligent and timely with your monthly payments. You can also check https://www.robinsonsbank.com.ph/products-and-services/loans/motorcycle-loan for flexible motorcycle loans. Otherwise, you may find yourself defaulting on your loan, with your motorcycle being repossessed by the lender. This scenario is something you want to avoid entirely, as not only does it expose you to an embarrassing situation, but your own beloved motorcycle may end up being sold to someone else, which is how banks and lenders usually go about dealing with repossessed motorcycles.
To help you avoid this painful scenario, here are some tips on managing your motorcycle payments better.
Research your chosen model of motorcycle
Before even thinking of taking out a loan, ensure that you research everything you can about the motorcycle you want. This way, you can figure out what kind of price you should be looking at to have financed, as well as if there’s a better and more cost-effective variant of the motorcycle you want out there. Also, look up the reviews of the dealership you’re looking to buy from, to see what their customers say about them. Do they offer great prices or flexible payment schemes? Do they offer great service? Answer these questions beforehand and you’ll be much better equipped when it comes to making a solid purchasing decision.
Shop around for an ideal loan or financing plan
After you’ve settled on the motorcycle you want and the dealer you’re buying from, it’s time to shop around for a financing loan that’s suitable for your budget and lifestyle. Not all loans and financing plans are the same, so make sure to look around for one that favors you the most. Also, don’t hesitate to negotiate and haggle the terms of your loan.
Remember, until you sign that dotted line, you have a considerable amount of bargaining power. The bank or lender you’re talking to wants you to take up a loan with them, and they’re authorized to tailor the terms to an extent to get you to sign. In the end, though, just remember not to jump on the first favorable loan you find, no matter how attractive it is. There’s always a good chance the next one you find will even be better.
Pay a larger than average down payment.
If possible, ask the dealer if they’re willing to let you pay a larger down payment than the amount they’ve listed. Doing so means that you’ll have to worry about fewer monthly payments in the long run. It’s also a good sign for your dealer, as they know that you’re quite serious about buying the motorcycle. They may even give you certain freebies or perks after the fact!
Keep better track of your spending habits
Buying a motorcycle is a huge investment, no matter how much you earn or how budget-friendly your loan term seems to be. As such, it’s in your best interest to keep track of your spending habits from this point forward. This will help you budget better for your future payments, as well as figure out where you’re spending money unnecessarily.
Contact your lender or bank ASAP when you miss a payment
Do your best not to miss a single payment on your motorcycle. However, in case you do, and for whatever reason, you must get in touch with your bank or lender immediately and tell them what’s going on. This helps you avoid a situation where you end up defaulting on your loan, causing your motorcycle to be repossessed. Don’t worry if you’re finding it difficult to keep up with your monthly payments. Be honest and upfront with your bank —they will help you find a way to pay.
One of the ways they can do this is to refinance your loan. This results in you paying a reduced monthly amount, but for over a longer period than what you agreed on. They can also defer your missed payment and move it to the end of your loan period instead, so all you have to worry about is your upcoming payment.
Be diligent with your motorcycle payments to avoid repossession and other hassles
There’s nothing more embarrassing than having your beloved motorcycle being repossessed. After all, it means that you couldn’t be relied upon to pay what you owe, something that’s a clear taboo in our country’s culture. Avoid the humiliation—as well as the inconvenience—of having your personal vehicle being taken away by keeping the above-listed tips in mind. By doing so, you’ll be able to manage your motorcycle payments more easily.