Financing a semi-new motorcycle is a valid option for those who do not have the money to formally contract a financing process, that is, those people who cannot finance a new motorcycle, as the cost is much higher.
Therefore, this option of financing a used motorcycle arises, on the other hand, a big question remains: will I not have to spend more buying a used motorcycle, and consequently, will I not end up spending as much as I would spend buying a new motorcycle?
To shed some light on those of you who follow our work here at Digital Insurance, we have gathered below a series of questions and answers that may help you in your search for buying a used or new motorcycle. Check out the main information and at the end, make your decision.
Financing a pre-owned motorcycle – what you need to know
Many people don't know that any financing is a credit operation carried out by a bank or financial institution for the purchase of a valuable asset. The credit institution analyzes the interested party's financial situation and assesses whether it is possible to lend the amount they need or not.
Typically, the finance company will sell the vehicle as a guarantee of payment. This means that, despite it being registered in the buyer's name, the buyer will not be able to transfer the motorcycle to another person until the financing is paid off. If the buyer is unable to honor the commitment, the finance company may seize the motorcycle and auction it off to pay off the debt.
This guarantee allows the financial institution to charge lower interest on financing, when compared to other lines, such as personal loans or overdrafts.
WHAT ARE THE ADVANTAGES OF FINANCING?
For those who don't have money, there are many advantages, for those who have money to pay in cash, there are no advantages.
Financing of semi-new motorcycles up to 100%
Every financial institution analyzes your finances before approving financing. This allows them to know how much of your budget you can allocate to pay the installments for the motorcycle.
Depending on your profile, you may be given enough credit to pay 100% of the motorcycle's value. In other words, the purchase may be for a motorcycle without down payment. To do this, the year the motorcycle was manufactured is also assessed. The newer it is, the greater the likelihood of financing its full value.
Low interest rates on financing
This will depend exclusively on the value of the motorcycle you chose to finance, therefore, you need to do an analysis with your bank to find out what the possibilities are for low interest rates on the market for financing a semi-new motorcycle.
Let's look at a practical example! If you pay in 36 installments and, after 6 months, you decide to pay the last installment in advance, you will have a 30-month reduction in interest on that installment. This could be a good use of your 13th salary or some other resource you receive.
Anyway, for more information, leave your questions in the comments!
Source: Low Interest Portal