An Insight into Motorcycle Loans
5 views This article is copyright free and is published in Motorcycles ? Automotive Joined: Jun 05, 20123998 articles
Motorcycles depreciate at a steady rate once sold. If you are heading out to Austin motorcycle sales, or trying to acquire a motorcycle loan, you need to be aware that not getting the right kind of finance could cost you more than the actual worth of the motorcycle. This happens in case of long term loans, as the worth of the motorcycle decreases at a much faster rate compared to the rate at which the loan is being cleared. Hence it becomes quite a daunting task to trade in or sell the bike unless the loan has been cleared.? The kind of loans that could get you into trouble
Motorcycle buyers are given to thinking they will be able to clear their loans prior to wanting to sell off the motorcycle, but this is not always the case. Loans having a term duration of sixty or more months which are available at lower monthly payments can become a serious problem should the owner wish to sell the bike after a few years. With the increase in term duration, the chances of paying more than the actual worth of the bike, also increases, particularly in case of zero down payment/ 72 month/ 84 month loans.
? Different types of motorcycle loans
There are two major ways in which the interest on a motorcycle loan is calculated. The worst option is the pre computed type which is typically combined with Rule of 78. In this kind of loan the first couple of years are spent clearing merely the interest, and hardly any payment towards the worth of the bike itself. Thus it becomes quite impossible to sell or trade in within this time period, and the buyer can easily end up paying a loan far higher than the bike?s actual value.
The second option is much more convenient ? simple interest calculation. In this type the early years are devoted to clearing the value of the bike itself rather than the interest. But in case the bike is one given to quick depreciation the buyer could still face problems, particularly with zero down loans with a term duration of four years or greater.
? How you can make the right choice
Avoid zero down loans, particularly those extending for over three years. Opt for simple interest loans. Clear off as much of the principal as you can when you have extra cash. Find competitive rates online and choose an installment loan, which is far more reliable than a credit card one offered by Austin motorcycle sales dealerships.
About author: William Klein
The Author is conveying information about Honda Motorcycles Austin and Austin Motorcycle Sales. You're probably thinking, everyone says that, so, what's different here. It's the commitment of quality, genuineness, and a guarantee that values your time and interest.
Other article from Automotive
The Right Approach to Purchasing a MotorcycleBefore you head to any Austin motorcycle sales and purchase a motorcycle on loan, you should be aware of some fairly common mistakes that people make in the process, which you could do well to avoid. ? Purchasing your motorcycle before securing a loan for ...
View by 7 people
Posted by William Klein in , Getting Your Windshield RepairedA windshield which is cracked in your car endanger the full safety for your car and even for the passengers who are moving around in the car and the same should be replaced or repaired immediately for averting any injuries which may follow the damage caused ...
View by 11 people
Posted by William Klein in , The Requirement of the Waukesha Auto Body RepairThe Waukesha Auto Body Repair services are simple the best when it comes to the automobile services in the region and it is mainly due to the fame and the reputation of the auto body parts services. The Auto body repairing is something which people cannot ...
View by 7 people
Posted by William Klein in , Look out for best Waukesha Auto Body RepairThe Waukesha Auto Body Repair services can take the best care of the vehicles and the automobiles in the region and it is only because of the fame and the reputation of these people. There are many occasions in our life when the people face up with minor or ...
View by 7 people
Posted by William Klein in , Body Shop Waukesha provides the best servicesThe Body Shop Waukesha services are the best providers of the services when it comes to the automobile parts and the vehicle parts. All of the technicians and the professionals who work in the body shop know their work very well and are also good at ...
View by 7 people
Posted by William Klein in ,Source: http://www.zuarticles.com/article-details/an-insight-into-motorcycle-loans.html
nba all star weekend malin akerman jeff carter chomp national enquirer kate gosselin helicopter crash
No comments:
Post a Comment