Motorbikes are the easiest way to commute in South Africa. And if you have been thinking of buying a motorbike, you have come to the right place. Oh no! We will not talk about the different types of motorbikes (or maybe a little!), instead, we will tell you about motorbike finance in South Africa.
Motorbike finance is the best way to cover the extra costs of your motorbike during purchase. This is followed by a monthly repayment plan.
So, let’s get started to know about motorbike financing options in South Africa.
General overview of motorbike finance
- Loan amount: R10, 000 (minimum) and R300, 000 (maximum)
- Loan term: The loan term can vary based on whether the motorbike is new. It can vary from 6 months to 7 years.
- APR: Interest rates and other costs are involved in the annual percentage rates. The maximum interest on motorbike finance is 27.5% and on top of that, you must pay other extra costs such as service fees.
Motorbike finance: What is it? And How does it work?
In simpler terms, motorbike finance is just like any other personal loan that allows to buy and drive luxury motorbikes in South Africa. Once you have bought the motorbike using finance, you must start monthly repayments of the loan amount.
In South Africa, you can also find specialized motorbike finances such as:
- Off-road motorbike finance: If you intend to buy a dirt bike, off-road motorbike finance is the best way to cover the costs. Off-road bikes are specialized motorbikes that you can drive on gravel, sand, mud, and unpaved pathways.
- Ducati motorbike finance: If you intend to drive this sweet ride down the road, you can do so by getting a Ducati motorbike finance. These bikes are expensive and luxurious but with the right Ducati financing, you can purchase this motorbike from the dealer.
- Used bike finance: If you are buying a second-hand motorbike, you can apply for used bike finance.
Motorbike finance loans can be secured or unsecured. If you are getting a secured motorbike loan, you must keep your motorbike as collateral. So, if you miss paying your monthly repayments, you can lose the motorbike. So, make sure you pay your monthly repayments at the right time.
Buying a motorcycle? Consider these factors!
With so many options on the market, finding the right kind of motorbike can be difficult. But here are a few factors that you can consider finalizing your choice when shopping around for a motorbike.
- Motorbike brand: With several brands on the market and each claiming to give you high quality, it can be difficult. But always consider a brand that gives you value for your money.
- Motorbike type: This depends on how you will use the motorbikes. You can find different types such as dirt bikes, sports bikes, cruiser motorbikes, and standard motorbikes.
- Engine capacity: This is one of the most important factors. Usually displayed as ‘cc’, the average range is 50cc to 1500cc. The larger the engine capacity, the more powerful a motorbike will be.
- Ease of use: Make sure to test drive the motorbike of your choice to get a feel of the bike. This will give you an idea about if it is the perfect choice for you or not.
- Other features: Don’t forget to consider other features such as a control panel, adjustable seats, height to make the right choice.
Motorbike Loan: Making the right choice
Choosing the right motorbike loan for yourself can be difficult. Here are a few questions you must ask when you are choosing a motorbike loan.
- Can you afford the loan? Always make sure to get loan online that you need but also the one that you can afford.
- How long should my loan repayment term be? Loan repayment is crucial and must be a comfortable process. Hence, determine how much time you will need to repay the loan. Also, make sure to choose a loan offer that allows you to make early repayments of the loan.
- What is the interest rate? Choose a loan offer that has lower interest rates so that the overall costs of your loan are lower too.
- Are there any other fees involved? Any hidden fees will increase the costs of your loan. So, make sure to know everything about any additional costs.
- Secured or unsecured loan: Which to take? Secured loans have lower interest rates but will need your motorbike as collateral. Miss monthly repayments and you must give up your bike. Whereas unsecured loans have higher interest rates but more flexibility.
Motorbike loan: How to apply?
Following are the standard loan requirements to apply for loan online:
- Valid driving license issued by the government
- Good credit score
- Valid ID issued by the South African government
- Minimum 18 years of age or above
- Proof of income (payslips or bank statement for last 3 months)
- Must have a monthly income above R5,000
When you are browsing the current offers at our website Snappy Loan, you can click on ‘Snap It’ that will take you to the lender’s website. You can fulfil the requirements and get the loan in due time.
Frequently Asked Questions
- I have a bad credit score. Can I still get a motorbike loan?
Yes, you can! There are specific loans for people with bad credit. And certain South African lenders don’t check your credit score.
- New or used motorbike: Which one should I buy?
You might already know that new motorbikes are usually expensive. So, if you are taking out a motorbike loan, make sure you choose the one that you can afford. Also, when you take a used motorbike loan, you can’t use it for buying stolen, older models, or damaged motorbikes.
- Can I use a motorbike loan for other expenses?
No! Motorbike loans are specifically meant to cover the costs of motorbikes. But some types of loans can be used to get motorbike insurance.
- Fixed and variable interest rates: What is the difference?
Fixed interest rates don’t change whereas variable interest rates change. This affects your overall costs of the loan.
Now that you know everything about motorbike loans in South Africa, you can check out our website Snappy Loan. We bring to you a complete overview of the latest motorbike loan offers in South Africa. You can search, review, and compare different loan offers. Once you have chosen the loan offer, just ‘Snap It’ and go to the lender’s website to fulfil the formalities and get the loan.