What decision should you make when buying a new motorcycle when your finances do not allow for a cash purchase? Should you opt for a motorcycle loan, or be tempted by a leasing purchase? Everything you need to know before you decide.
Buying a motorcycle: it’s rolling for the French market
From Yamaha to Suzuki, via BMW, KTM, and Honda, the main world manufacturers of motorized two-wheelers record good sales figures in France. So much so that the French motorcycle purchase market is one of the European locomotives in the sector! In 2016, models over 125 cm3 recorded an increase of 5% compared to 2015, i.e. almost 150,000 units sold.
The prices of new motorcycles vary on average between 3000 and 15,000 euros, depending on the category sought (GT, Cross, Sport, Trial, etc.) and the displacement.
The best-selling model in 2016 is a scooter, the Honda Forza 125, popular with city dwellers to reduce the duration of commuting. It is ahead of the Yamaha MT-07, an entry-level 700 cc roadster with a sporty and elegant look. With its Satelis scooter, Peugeot is at the gates of the top 30, dominated by Japanese manufacturers.
Motorcycle credit, user manual
Not everyone can afford the motorcycle of their dreams for cash. Indeed, the personal, professional situation and the budget of an individual do not systematically allow it. On the other hand, wanting to buy a new motorcycle right away and paying the bill through monthly payments is possible.
The motorbike loan, earmarked consumer loan, makes it possible to finance the acquisition of a new motorbike at very advantageous conditions, thanks to the low rates charged on vehicle loans.
The purchase of a motorcycle on a lease, also called Rental with the option to purchase (LOA), authorizes a buyer to take advantage of all the on-board technologies of a new motorcycle without having to buy it in cash.
As part of a contract signed in partnership with its dealer, the rider has the opportunity to rent his favorite model, at an interest rate, an amount of monthly payments and a repayment period defined at the signing of the contract. This duration covers a period ranging from 1 to 5 years. After that, two options are available to the biker:
– either he decides to buy the model, and to settle the amount remaining due to pay;
– or he returns it to the dealer, and can possibly rent another one.
Advantages and disadvantages of motorcycle credit
Motorcycle loan taken out with a lending institution has several advantages:
– offer competitive interest rates;
– immediately become the owner of the motorcycle;
– condition the release of funds upon delivery of the motorcycle;
– guarantee a withdrawal period of 14 days.
However, the agreement of the lending institution is subject to a study of the situation of the borrower and his repayment capacity. On the other hand, you have to compare the loan offers made by multiple specialized organizations to take advantage of the best offer. Do not hesitate to carry out an online simulation to discover the advantageous conditions of the motorcycle credit offered by Good Credit!