Buy from a dealer If you have limited experience and may benefit from assistance in finding what you are looking for, visiting a motorbike dealer could be a smart first step. You may obtain tips and recommendations here so you know precisely what to look for when buying the best motorcycle for your driving style. With the assistance of a trader, you may be confident that the model you purchase will meet your expectations. Some dealers allow you to buy by installment, which means you may finance the purchase by paying in monthly installments.
If the budget you want to use for your purchase is limited, you can always think of models with a cheaper price tag to use as little of your personal reserves as possible. For example, you can find new models like a BMW G310R for €5,150 or a Suzuki GSX R125 for €4,499. These prices may be more affordable, but your savings will suffer because the entire amount is immediately paid out of your own pocket. This can also be dangerous if you are facing financial difficulties. With a loan as an alternative, you can spread your expenses over a longer period of time and thus relieve the pressure on the savings account.
Loan with a specific purpose vs personal loan
If you do not have enough money in your bank account to buy a motorcycle, a loan with a specific purpose can be a solution that makes it available to you to purchase a motorcycle and If you wish to learn more about motorcycle laws or if you experience a motorbike accident, you may click on this page. In order to take advantage of this type of loan, you must provide proof of purchase, as the amount borrowed is directly allocated to the purchase of the property. In general, the amount you can borrow is equal to the price of the vehicle.
The specific purpose loan is a low-risk loan because the vehicle serves as collateral, unlike a personal loan. With a personal loan, on the other hand, in some cases, you can borrow up to 110% or 120% of the purchase price of the engine. This is mainly intended to facilitate the payment of the additional costs of, for example, the insurance of the vehicle or the equipment.
Unlike the assigned loan, the personal loan does not require a guarantee or justification of purchase. This makes it a greater risk for banks and therefore this loan has a higher interest rate than secured loans. In the long run, the monthly payments will be higher and therefore the total cost of the loan will also be higher. However, you must meet certain conditions if you want to access an assigned loan. You should; be a resident of Belgium, an adult, not be included on the blacklist of the Central Individual Credit Register; and finally, be able to repay your loan during the specified period.
It is important to delve into the different payment options available in the market in order to find the best deal. Take the example of the Yamaha MT-09 SP: to buy this new bike worth 10,699 euros with an 18-month loan, different rates (indicated by the APR, the Annual Percentage Rate) are offered by banks in Belgium. Cetelem offers a loan with an APR of 2.49%, a monthly repayment of €606, which corresponds to a total repayment of €10,909 over 18 months. While at Belfius Bank you get an APR of 1.15% with a monthly payment of €600 for a total repayment of €10,796. As you can see, the cost of a loan can vary quite a bit, so don’t hesitate to check out the different financing options for motorbikes that are available in Belgium and thus save money. Search engines such as TopCompare. allow you to easily compare different loans.
Are you also aware that it is possible to make a personal contribution of approximately 20%? If you have the opportunity, you can even negotiate a lower interest rate with this. Of course, this also reduces the total loan amount because you already contribute to the financing of your motorcycle. In addition, in the event of theft or destruction of the vehicle during the loan period, you increase your chances of getting a higher amount refunded from your insurer.