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Common Mistakes Motorcycle Buyers Make When Looking For A Motorcycle LoanWhether interest rates are high or low or it's the end of a model year with lots of incentives, motorcycle buyers tend to make the same mistakes when shopping for a motorcycle loan. Here are four common mistakes motorcycle buyers make with motorcycle loans. Shopping for a motorcycle before shopping for a motorcycle loan. Many motorcycle buyers enter the showroom looking for a motorcycle before they determine how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is no need to shop for a $20,000 Harley Davidson motorcycle, if a lender is only willing to provide a loan amount of $10,000. Additionally, once motorcycle buyers enter the showroom slick salespeople often pressure them into motorcycle loans with much higher internet rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or online. Salespeople do not like motorcycle buyers to leave the dealership to get a motorcycle loan. In the salespersons mind this only increases the chance of loosing a sale and commission. Therefore, salespeople frequently try for a quick sale which normally results in pushing motorcycle buyers to get motorcycle financing at the dealership. The bottom-line is that it is always best to shop for a motorcycle loan before entering the showroom. Diving into the unknown motorcycle loan. Motorcycle buyers often jump into motorcycle loans that they do not completely understand or may not be the best alternative for them. For instance, in today's age manufacturers frequently run credit card motorcycle loan promotions on their private-label credit cards. But these promotions typically offer a low interest rate for a short term like 12 or 24 months and have a much higher interest rate after the short promotional term. On a credit card promotion if motorcycle buyers can not afford to pay off the loan during the short promotion period, then they are typically better taking a slightly higher interest rate on an installment motorcycle loan for a longer term. Borrowing too much. The most common mistake the first time motorcycle buyer makes in not having a clear sense of how much motorcycle they can afford. This is especially true for young motorcycle buyers who look to buy the top sport bikes that cost up to $10,000 - $15,000. What they fail to realize is that financing a $10,000 - $15,000 motorcycle can stretch them to thin, resulting in them having little cash to enjoy themselves and the motorcycling lifestyle. They may also have too little cash to pay for insurance, maintenance, registration or new accessories for their motorcycle. Not asking the right questions. The first warning sign that motorcycle buyers should see is that if they do not understand the type of motorcycle loan, then they should be sure to ask a lot of questions. Here are some good questions to ask:
Overall, motorcycle buyers can avoid these common mistakes by spending a little extra time focusing on shopping for a motorcycle loan and asking lots of questions. Copyright (c) 2004, by Jay Fran This article may be freely distributed as long as the copyright, author's information and an active live link to http://www.motorcycle-financing-guide.com is published with the article. A complimentary copy of any newsletter or a link to the site where the article is posted is greatly appreciated. Other articles by this author »
About Jay Fran
Jay Fran is a successful author and publisher at http://www.motorcycle-financing-guide.com. A comprehensive resource on how to have the best experience and get the best deal on motorcycle financing, bad credit motorcycle loans, high risk motorcycle loans and motorcycle buying. Related
And here is another random article you might be interested in... How Do I Know If I am Eligible For Student Loan Debt Consolidation?If you are a parent sending your child off to college or if you are a student going to college for the first time, you are probably cringe whenever you receive a tuition bill in the mail--or when you thinking about buying $1000 worth of textbooks for next semester. As the price of getting a college education rises in the United States, so does the demand for student loans and student debt consolidation services. Whether it be for graduate school or to study abroad, students are accruing massive debts beyond what was reasonable in the past. These loans already have low interest rates and flexible pay-back terms because they are specifically targeted to members of society who are not in the work force; however, even with these rates, you may find it troublesome to pay them back on schedule. Consolidations programs are tailor-made to help students manage their debt and avoid debt default. There are two ways in which these programs will deal with the problem: they will either reduce the principal or they will eliminate it altogether. This is actually permissible for all loans where they allow pay-back in terms of specific services or higher education; whether or not this applies to you depends on the type of student loan scheme for which you opted. If this does not work for you, you always have another option: you can seek the help of a consolidation agency. There are special consolidation agencies that deal with student debt problems. Basic Types There are generally two types of student loans: federal and private. If you have taken both, you should never consider consolidating them into a single package. Only federal loans have government backing; and hence, can be refinanced at low rates. It is always advisable to take all federal loans together, solve them; and then head for the private ones. Private student loans are generally unsecured and charge higher interest rates than their federal counterparts. Conditions of Consolidation There are certain norms that have to be in effect if you want to consolidate your student loan. To begin with, you have to be out of school or college and must be in the "grace period" of the loan; or must already be making repayments to avail the facility of a consolidation help service. If you fit into the criteria, then you should move ahead to the next step, which is talking to the consolidation company and asking them to contact your creditors to reduce your monthly payments and interest rates. Just as with any other loan, student loan repayment affects your future prospects of loan-taking. If student loan debt goes beyond eighty-five percent of your total income, it is seen as a negative score in your future credit assessment. This shows that even student loans have an influence on your future decisions as a borrower. There are some consolidation companies who may qualify you for additional reduction programs, which not only reduce the interest rates, but also include grace period savings, on-time payments, and automated direct-debit payments. Beware Not all consolidation companies on the block are genuine, so make sure the one you apply for is a reputed one with sufficient evidence to support its creditability. Otherwise it will lead to doubling your problems, as fake companies will only add to your already high debts. Talbert Williams 2001-2006 All Rights Reserved Other articles by this author »
About Talbert Williams
Talbert Williams offers free help and referals to help consolidate and eliminate your debt at: www.debt-free-america.com. Related
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