Common Mistakes Motorcycle Buyers Make When Looking For A
By Jay Fran, Tue Dec 6th

Whether interest rates are high or low or it's the end of amodel year with lots of incentives, motorcycle buyers tend tomake the same mistakes when shopping for a motorcycle loan. Hereare four common mistakes motorcycle buyers make with motorcycleloans.

Shopping for a motorcycle before shopping for a motorcycleloan. Many motorcycle buyers enter the showroom looking fora motorcycle before they determine how much money a motorcyclelender is willing to loan to them for the purchase of amotorcycle. There is no need to shop for a $20,000 HarleyDavidson motorcycle, if a lender is only willing to provide aloan amount of $10,000.

Additionally, once motorcycle buyers enter the showroom slicksalespeople often pressure them into motorcycle loans with muchhigher internet rates than they could have gotten had theyshopped for a motorcycle loan at a bank, credit union or online.Salespeople do not like motorcycle buyers to leave thedealership to get a motorcycle loan. In the salespersons mindthis only increases the chance of loosing a sale and commission.Therefore, salespeople frequently try for a quick sale whichnormally results in pushing motorcycle buyers to get motorcyclefinancing at the dealership.

The bottom-line is that it is always best to shop for amotorcycle loan before entering the showroom.

Diving into the unknown motorcycle loan. Motorcyclebuyers often jump into motorcycle loans that they do notcompletely understand or may not be the best alternative forthem. For instance, in today's age manufacturers frequently runcredit card motorcycle loan promotions on their private-labelcredit cards. But these promotions typically offer a lowinterest rate for a short term like 12 or 24 months and have amuch higher interest rate after the short promotional term. On acredit card promotion if motorcycle buyers can not afford to payoff the loan during the short promotion period, then they aretypically better taking a slightly higher interest rate on aninstallment motorcycle loan for a longer term.

Borrowing too much. The most common mistake the firsttime motorcycle buyer makes in not having a clear sense of howmuch motorcycle they can afford. This is especially true foryoung motorcycle buyers who look to buy the top sport bikes thatcost up to $10,000 - $15,000. What they fail to realize is thatfinancing a $10,000 - $15,000 motorcycle can stretch them tothin, resulting in them having little cash to enjoy themselvesand the motorcycling lifestyle. They may also have too littlecash to pay for insurance, maintenance, registration or newaccessories for their motorcycle.

Not asking the right questions. The first warning signthat motorcycle buyers should see is that if they do notunderstand the type of motorcycle loan, then they should be sureto ask a lot of questions.

Here are some good questions to ask: •Is the interest ratefixed or variable? If fixed how long will it be fixed for?

•Are there circumstances that can make the interest rateon the motorcycle loan change in the future?

•What happens if a payment is 30 days late? Does theinterest rate increase?

•What happens if a payment is 60 days late? Does theinterest rate increase?

•How long is the term on the motorcycle loan?

•If the loan is an installment loan, does it use rule of78 or simple interest? (Simple interest is always better becauseit does not penalize the motorcycle buyer if the loan is paidoff early.)

•What is the down payment requirement to get themotorcycle loan?

•Is full coverage insurance required?

•How much is registration and are these fees included inthe motorcycle loan?

•Are there any administrative fees to get the motorcycleloan and if so how much are the fees?

Overall, motorcycle buyers can avoid these common mistakes byspending a little extra time focusing on shopping for amotorcycle loan and asking lots of questions.

Copyright (c) 2004, by Jay Fran This article may be freelydistributed as the author's information and an active live linkto www.motorcycle-financing-guide.com - Motorcycle Financing & Bad CreditMotorcycle Loans is published with the article.

A complimentary copy of any newsletter or a link to the sitewhere the article is posted is greatly appreciated.

About the author:Jay Fran is a successful author and publisher athttp://www.motorcycle-financing-guide.com. A comprehensiveresource on how to have the best experience and get the bestdeal on motorcycle financing, bad credit motorcycle loans, highrisk motorcycle loans and motorcycle buying.