Bad credit guaranteed motorbike loans and finance

Motorbike finance in the UK is a little different to car finance, especially bad credit finance.

An obvious point is that the value of finance required to buy a motorcycle is substantially less than the size of loans required to purchase a car.

As a result of the price of motorcycles tending to be under £5000 for a new bike (unless you are in the specialist market) people will tend to purchase bikes which are brand new as the difference in price between a new bike and a second hand one is not massively different.

Do you need guaranteed motorbike finance?

For many people, especially real motorcycle enthusiasts, the difference in a £1000 does not warrant buying a second hand bike.

Many of the motorcycle dealerships offer guaranteed finance and loans where the finance is spread over a short period of two or three years.

This can occasionally  include guaranteed motorbike finance for bad credit for those with a bad credit record, although you will have to check with the dealer concerned whether finance is available for you if you have a poor credit history as a result perhaps of a CCJ or a recent bankruptcy.

Don’t forget your high street bank

If you do have bad credit, before you start looking around online for a lender specializing in bad credit here is a good tip. If you have an account with one of the high street banks, they will sometimes lend to existing customers.

Therefore, if you have a current account with someone like Barclays and you have bad credit, it is not a foregone conclusion that you will automatically be rejected for a loan.

Remember, if you don’t ask, you don’t get. Remember, with motorbike finance, the cost of a bike is substantially less than a car and this may make the difference.

Guaranteed Motorbike Finance – further pointers

There are various financial services company in UK who arrange finance and loans to customers who have a choice of a number of the best competitive deals available to them. Most finance for motorbikes is arranged online. The underwriting teams will then directly contact the customer to discuss the loan and agreed repayments.

There are normally 7 or 8 criteria to fulfill in order to be approved for a motorbike loan. It is far tougher than being approved for a secured loan. The eligibility criteria’s are here below:-

-Over 18 to get a loan and a minimum of 21 to get motorbike finance ( Guarantor may be required)

-Be employed / Self Employed / actively in HM Forces in order to qualify for guaranteed bike finance. In case of Employment be able to show 3 years service and the last 3 months’ payslips. In case of self employment the last 3 months’ bank statements.

- Three years proof of address  - a current voter electoral roll is necessary for bike finance.

-Have a bank account that can accept direct debit.

-Not be an insolvent or bankrupt,though some adverse credit history is usually fine to go through.

-Have a CBT or Full Cat a Bike Licence – the training cost can be included in the loan amount.

-Lastly,some financial services company like Biker Loans only arranges the loan if the customer buys from a dealer,although the customer always have the option to apply for motorbike finance personally.

There are several factors on how it is decided on the amount a person can borrow with guaranteed motorbike finance including monthly income and property equity.The most important condition is to be able to afford the repayments.

The loan repayment depends on the customer and how much he can afford to pay in easy instalments and over what period of time. In these difficult economic times you can easily lose your job or become redundant and so most loan companies offers and recommend optional accidents, sickness and redundancy cover to ensure peace of mind; some companies also do cover Life assurance which can be free with some plans.
Personal Contract Purchase or PCP is another excellent way of financing a motorbike. With a minimum deposit of 5% which can be made up of either a cash deposit of part exchange, at the end of the term the customer has 3 options:

-Part exchange the bike and if the value of the bike exceeds the money outstanding the remainder can be used as a deposit on the nest bike.

-Purchase the motorcycle outright by paying the final payment.

-Return the motorcycle in good condition and customer owes nothing.