Looking to purchase a new motorcycle? Well what I would like to show you in this post is that many motorcycle buyers fail to realize that purchasing a motorcycle is much more than just the price of the new or used motorcycle itself.
What you as a motorcycle buyer really need to understand is that purchasing a motorcycle is really four separate transactions that are presented to you as one transaction. These four transactions are simply:
1. The price of your new or used motorcycle
2. The value of your old motorcycle
3. The accessories you purchase
4. The motorcycle financing
If you really think about it, purchasing a motorcycle is much more than the price of your new or used motorcycle purchase. All of the 4 areas above offer a unique opportunity for you to spend money. To ensure you get the best total deal on your motorcycle purchase you need to ensure you get the best possible deal in each of these four areas.
Here are some tips for you to use to ensure you get the best possible deal in each of these four areas. Read the rest of this entry »
Posted by Administrator as Buying Tips at 7:12 PM PDT
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Back in November of 2005, I wrote a short post title “Motorcycle Loan Rates Seen Increasing” explaining why rates were rising for motorcycle loans. Back then rates were ranging from 7.5% -8.5% for a 60 month motorcycle loan which is still fairly low from an historical perspective.
Since this original post interest rates have been on the rise a little bit and are still expected the rise in the future. The average 60 month motorcycle loan rate for motorcycle buyers with an “A+” FICO credit rating are ranging from 8.75% -9.45% today. This is an interest rate increase of about 1.25% percentage point from November 2005.
The net impact on an $8500 loan amount for 60 months would result in you paying about an extra $305 in interest today compared to November 2005.
The bad thing is that the U.S. Federal Reserve does not appear to be done increasing interest rates so it is likely motorcycle loan rates will continue to increase throughout 2006. Therefore, if you are looking to purchase a new or used motorcycle with financing now is not a bad time.
One note of caution is that if you are considering holding off on your motorcycle purchase, there is the potential we could see motorcycle loan rates in the 10%-11% range in the future. You should factor this into your decision.
Hopefully, sometime this year the Federal Reserve will stop raising interest rates and the rates in the motorcycle loan market will start to level off.
Posted by Administrator as Financing - Loans at 2:31 PM PDT
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