Tag Archives: loan

Harley-Davidson & Piaggio take out loans

Harley-Davidson and the Piaggio Group of motorcycle and scooter companies have announced massive loans to get back on their feet after the pandemic.

In June, Harley-Davidson announced it had access to a loan of up to $US350 million (about $A500 million) over the next year.

While it has not committed to the entire amount of the loan, it is committed to draw at least $US150m (about $A215m).

The company believes the loan is consistent with its intentions regarding liquidity.

Piaggio Group loansmoto guzzi factory museum V85

Now the Italian Piaggio Group which produces Aprilia, Moto Guzzi and Vespa has secured a loan for €60 million (about $A97m, $US67m).

That’s 20% more than their annual net income.

The money will be put towards restarting after the COVID lockdown, as well as research and development.

Piaggio says they will focus their R&D efforts on reducing fuel consumption and emissions and increasing the number of new models.

Comment on loans

The world seems to be going into debt over the pandemic crisis and motorcycle companies are not immune.

It’s good news when they direct loans into R&D.

However, it’s a concern when businesses go into debt to help them survive a crisis.

In the wake of the COVID lockdown, many motorcycle companies are now reporting a huge bounce in sales in June.

In fact, the KTM Group, which includes Husqvarna and Gas Gas, has reports its biggest June in history.

KTM Group Australia/New Zealand MD Brad Hagi says there is “still a long way to go before this crisis is over”.

“This recent sales spike has not only seen existing and former riders return to riding, it has also seen new riders enter our sport, to experience the unique freedom it offers, and that is a real positive for the industry long term,” he says.

Australia is yet to announce official motorcycle sales figures for the second quarter, but they are expected to be flat or slightly up.

The Federal Chamber of Automotive Industries has reported that the dive in car sales has now slowed thanks to the easing of restrictions.

FCAI chief executive Tony Weber attributes the slight recovery to the easing of COVID-19 restrictions, end-of-financial-year sales and government incentives.

In fact, some dealers tell us buyers have been accessing their superannuation to buy their dream bike!

Similar incentives exist in other countries around the world which are reporting similar strong sales results.

Source: MotorbikeWriter.com

Harley-Davidson plans big loan

Harley-Davidson has announced it now has access to a loan of up to $US350 million (about $A500 million) over the next year.

While it has not committed to the entire amount of the loan, it is committed to draw at least $US150m (about $A215m).

The company believes the loan is consistent with its intentions regarding liquidity.

Loan plan

What the loan would be used for we are not sure and there has been no announcement about their purpose, but it could be to help mitigate the effects of the pandemic.

It follows recent measures announced by new CEO and president Jochen Zeitz to ride out the pandemic recession including:

The new measures are in addition to Jochen’s Rewire strategy.

Jochen Zeitz with LiveWire rewire sharesJochen Zeitz with the electric LiveWire

Harley in the news

Harley has been in the news the past couple of months ever since CEO Matt Levatich was sacked in February Jochen was appointed interim CEO and then announced as CEO on 8 May 2020.

In May, it was revealed that Jochen senior VP and CFO John A. Olin bought millions in shares of HOG stock.

This seems to show a vote of confidence in the company by its executives, although some say it may be just for show to prop up the share price.

There is still no statement from Harley about the share purchases and no record of Jochen’s salary.

However, the previous boss was paid a record $11m last year.

Jochen’s five-year “Rewire”strategy also involves expanding “profitable iconic heritage bikes” while committing to branching out to adventure touring, the new Streetfighter range and electric motorcycles.

Harley’s sales have been on the slide for several years. This video gives an entertaining history of the American icon’s problems.

Source: MotorbikeWriter.com

Ponder on these before purchasing your ride

(Contributed post)

Although not all are motor freaks, having a ride for oneself is almost everyone’s dream. The beauty that lay in your garage can take you on through the roadblocks of your daily life and also to the unexplored places beyond the pines. While some are motor geeks, some aren’t; but the need for a ride is not limited just to the geeks. With the world spread out into those sporadic, picturesque, serene fields and frequently occurring luminous streets, it is always best to have your hands over a handlebar that could wriggle you through the paths to your destination.

Coming to the aspect of purchasing a ride for yourself, not everyone will have a clear idea of what all to cover while considering a purchase. To all amateurs, the glossy, rugged profiles and façade would be the factors that hook them the most to the vehicles. But the performance depends on many other factors that lay within what you see. Your decisions shouldn’t be later looked upon with remorse for the low-performance and risks that your ride poses. Beginner, amateur, geek or professional, it always matters what you own for its quality; so, make sure to get hold of the best rides available within the market then, with proper knowledge and guidance through the features and also the cost (affordable or not) of the vehicle that you are about to own. Read this article at MarketReview.com to know about the requirements to apply for a vehicle loan and much more, so that when you decide on a vehicle nothing stops you from owning it.

Factors to be considered before deciding on buying a bike

  • Understand your ability

What counts the most in the riding of a bike is the experience that you possess. The ability to handle a bike and maneuver it with ease is of paramount importance before even thinking of buying it. Not everyone will be equally skillful to handle it with ease, the driving skills and experience matter a lot when narrowing down to a particular vehicle on your list. The ones who are well-experienced could go for powerful bikes, whereas for the novices it would be better to pick the less powerful ones (with fewer sports bike like features) and the ones that are meant for beginners that wouldn’t be too risky when used.

  • The terrains that the vehicle has to negotiate

Vehicles are made for particular purposes or are made ideal for certain roads. Before hitting the road, you should always make it a point to look into the features of the vehicle, that whether it meets the standards of the ones that could be driven through these roads or not. Vehicles are built with features that are to render your riding experience, the best. Consider the terrain factor also which every vehicle needs to cover with the rotating wheels; which if not ideal for the vehicle and the experience of the rider could make the vehicle run amok.

  • Body of the bike

This is one factor that every rider irrespective of their experience or ability checks out even when not having a plan to buy a ride. Every ride carries a certain charm which we savor even when it just passes by us. The power of looks is a whole another thing, with some carrying the most alluring aesthetic features which is hard to overlook.motorcycle loan

The beauty of your ride matters a lot, along with the body’s built-quality and durability and all the personal needs like color and certain customizations too. There are various types of bikes differing in its built-quality and body style, that make it suitable for particular roads and speeds. Sports bikes, Cruisers, Street Riders, Tourers and Dirt bikes are the various types that vroom around on the roads.

  • Power of the engine

This factor takes you for the ride, with the engine’s displacement and power. Power is not everything for a bike ride, because it is not always what a rider prefers, it could also be the fuel efficiency. So, when power increases, fuel efficiency reduces and vice-versa. It solely depends on your preference of qualities, to the bike that you must finally book. The beast that the machine is within is what matters the most, be it, either way, you have to check into these details to know what suits you best.

  • Ride quality and usage factors

The ride quality matters with the shock absorbance feature that the machine offers along with the smoothness with which it tackles the roadblocks and bad roads. All these could be checked with a test drive that you are rightfully offered; along with those factors while testing one should check with the technical and practical issues it has (if any) when used and also you have to look into the matter closely by analyzing the performance and see if it is suitable for your use, with the frequency that you are planning to use it.

  • Parts of the vehicle and rider’s body proportions

You should always make it a point to check the availability of the parts and accessories to your bike with its service facilities and expenses. The rider’s body proportions should also be fit for the proportions of the bike; so, when testing it check the proportions of the bike with your body by sitting in the sweet spot and see if it suits you.

  • New or used

Some people would prefer to down their expenses by going for a used bike, while some would prefer the sleek new ones. It depends on personal interests, but when it comes to the aspect of experience this factor of the bike’s age also matters. It would be best for the inexperienced riders to initially ride the used ones so that even if some form of damage is brought on the vehicle, the rider doesn’t have to pay it off with a huge bomb. While experienced riders could easily go for a new one if they are confident enough to take it for the long-term budget that it incurs.

One factor that is not considered above is the factor of cost or budget, which is completely dependent on a person’s financial stability and everyone will have a clear idea of their status and needs, so decide after quite some deliberation considering also the expenses that would follow the initial one. Ride your dream by incorporating the practicalities to it as well, so that your dream does not leave you stranded on the road.

               

Source: MotorbikeWriter.com

How to Get a Motorcycle Loan and Avoid the Stress

How to Get a Motorcycle Loan and Avoid the Stress: This contributed guide will help you secure a loan for your new motorcycle.

Riding a motorcycle seems fun and adventurous, but it’s harder than most people think. For those thinking about buying a motorcycle, consider taking lessons first.

There is a population of people that only drive motorcycles. These diehard riders belong to bike clubs and can tell you everything you need to know about motorbikes.

If you are considering purchasing a motorcycle you may be wondering how to get a motorcycle loan. It is true that most lenders view these types of loans differently than a standard auto loan.

Before moving forward with the purchase, be sure that it’s an endeavor you want to get into. Owning a motorcycle comes with different pros and cons than owning a car. Are you going to use your motorcycle as a recreational vehicle, or are you ditching your automobile?

Considering a motorcycle? Keep reading for tips on how to get a motorcycle loan.

Motorcycle Loan vs. Auto Loan

A motorcycle loan is similar to an auto loan in that they are both considered collateral loans. This means that the bike secures the loan. If you fail to pay the loan according to its terms the lender can repossess the bike to recoup their loss.

Where the types of loans differ is the interest rates on a motorcycle will be higher than a car loan. You can also expect to pay more for insurance.

To get around the higher interest rates, you may want to consider getting a personal loan and paying cash for the purchase. This way you can save in the long run on interest. Your insurance rates will also be lower if you own the title to the bike.

Another thing to keep in mind is that some lenders will not issue a loan of dirt bikes or All-Terrain Vehicles (ATV). You may also find that there are certain motorcycles that lenders won’t fund. 

Before you get your heart set on a particular bike, do your research to ensure you will be able to secure the needed funding and insurance.

How to get a Motorcycle Loan with Your Credit Score?

Applying for credit can negatively impact your credit score. Before researching lenders, perform a credit check-up. Depending on your current rating, you may have to put off making a large purchase.

Consumers can receive a free annual credit report from each of the three major bureaus. Request your report and attend to any outstanding debts that are dragging down your FICO score

How Your Credit Score Impacts The Loan

If your score is below 700, expect to pay a higher interest rate. Scores below 600 could prevent you from getting a loan. A lender willing to take a chance on someone with bad credit will have terms that will significantly impact the cost of buying your motorcycle.

Going with a subprime lender isn’t a bad thing for those with not so perfect credit. It is an opportunity to help you rebuild your score.

Determine How Much Money You Can Afford to Borrow

A lender will tell you an amount you’re eligible to borrow. This doesn’t mean you can afford to finance that amount. The motorcycle of your dreams may be out of your price range at this time.

Looking at older models of the bike you want is an option to get within your price range. As your finances improve, trade it in for the newer version you want.

When getting a motorcycle loan, you also want to consider the cost of insurance, annual registration fees, and maintenance costs. Determine the annual cost and divide over 12 months. Add this amount to the monthly payment on your loan to see the true cost of buying the motorcycle.

Types of Motorcycle Loans

When it comes to financing your motorcycle there are a few routes you can take. These options range from loans for those with perfect credit to bad credit motorcycle loans.

Dealership Loans

Dealership loans are financing offered by the dealership selling the motorcycle. These loans are usually reserved for buyers with perfect or near perfect credit. Some dealerships will work with people with less than perfect credit to secure loans.

A dealership often requires a down payment or trade-in as part of the loan requirements.

Operator Equipment Manufacturing Loans 

OEM loans are like dealership loans. They are specific to the manufacturer of the motorcycle. These loans are incentive based for the dealer to put an extra emphasis on selling that line.

You may have more room to negotiate when buying from a dealership offering multiple brands. 

Secure a Personal Loan

Personal loans can be either secured and unsecured. These loans can be used for any purpose and often come with longer repayment terms.

When using money from an unsecured personal loan to buy a motorcycle you own the bike with a free and clear title. When taking out a secured loan you will need collateral. The collateral does not have to be the motorcycle.

Use a Credit Card

It is possible to find a good motorcycle for a few thousand dollars. In this case, you can buy the motorcycle with the available balance on a credit card. 

Credit cards are a line of credit that is easily accessible. Depending on your interest rate it’s a better option. Plus, there are no time frames for repayment. You pay your monthly minimum or a higher amount as you choose.

Keep in mind, the longer it takes to pay off the purchase, the more interest you will pay in the long run.

It’s Time to Go Shopping

There is a lot to think about when making any major purchase. Knowing your options on how to get a motorcycle loan is half the journey. Finding the bike you want is the other half. 

If you’re considering the purchase of a motorcycle, learn more about what’s popular in bike sales, check out the rest of this website. 

 (Sponsored post)

Source: MotorbikeWriter.com

4 Best Motorcycle Loan Options For Students

(Sponsored loan article for our North American readers)

Today, motorcycles are more popular because of their fuel efficiency and the cost advantage. Kelley Blue Book estimates the average cost of a new car to be $US36,270. In comparison, you can bring home a new motorcycle for less than $5000.

Motorcycles are a cost-effective mode of transportation. However, securing a motorcycle loan can be more difficult than it appears at first glance and you may like to examine the financing options you have.

Motorcycle loans and auto loans

Even though purchasing of a motorcycle is not different from buying a car as far as the process is concerned, you need to look for financing alternatives available for a motorcycle loan. In most scenarios, you can’t avail an automobile loan to buy a motorcycle. Rather, you have to seek a loan that is specifically meant for motorcycles, or other categories of similar vehicles such as recreational or specialty vehicles.

Often, the terms for motorcycle loans are different from auto loans, especially in the repayment period and interest rates.

For example, you can get a car loan for a rate as low 3.09% from SunTrust as of April 6, 2018. But SunTrust puts motorcycles in the category of boats and motor homes and treats all of them as recreational vehicles. The lowest rate on which SunTrust can give you a motorcycle loan is 4.44%.

Loan options

Since motorcycle loan is a lot different from auto loan, it is not a bad idea to examine different financing possibilities to make sure that you get the best deal in the market.

No matter whether you are going to use your motorcycle for primary transportation purposes or for weekend joyrides, you can take out a loan to buy your motorcycle under four main financing choices.

1. Manufacturer financing

You can directly get a motorcycle loan from some manufacturers. For example, Harley-Davidson offers such loans in association with Eaglemark Savings Bank. Depending on your credit history and other factors, you can find a loan at a meager 3.99%. Chances are that you may not be required to pay even a down payment.

Here an important thing to bear in mind is that the manufacturers offer lowest rate loans on select models and under short-term repayment plan. If you are planning to buy a low-priced model or wish to choose a repayment plan longer than 36 months, you are likely to attract higher rates.

2. Dealership financing

You can also get the financing from the motorcycle dealership. Some of them offer loans under a special scheme with the manufacturers but they also partner with multiple lenders. Loans from these lenders usually are available at less stringent conditions than manufacturers, so chances are that you will qualify for a loan if you have poor credit.

However, it can be more expensive to avail a loan from the dealership than from other sources. There is a possibility that you might have to pay more in interest if you did not consider other options, for example, a credit union.

3. Credit union and bank loans

You can make some saving by taking out a loan on your own before visiting the dealership. Motorcycle loans are available at several banks and credit unions and they tend to charge lower rates than the dealerships.

If your credit score is low or don’t have an impressive credit history, seeking a loan from a credit union can be an intelligent option. Credit unions, unlike banks, are nonprofit financial entities and might offer loans on easy terms. You can visit MyCreditUnion.gov to locate a credit union near you if you are not already a member of one such organization.

4. Personal loans

You can also consider personal loan as one of the options to buy your motorcycle. Contingent on your income and history of financially responsible behavior, you could find a loan at rock bottom interest rate of 4.98%. If your credit is in excellent condition and if you can easily make monthly repayment, you will be able to save money by choosing a personal loan.

Even if if your credit isn’t all that great, chances are you will qualify for a personal loan more easily than a motorcycle loan. But if the credit standards are relaxed, personal loans can come at higher interest rates compared to other types of financing.

Also, personal loans are to be repaid in much shorter duration than motorcycle loans. A motorcycle loan can be repaid in up to 84 months while the repayment plan for personal loans is often limited to only 60 months.

Some lenders also give student loan for buying motorcycle. You should also check them out if you qualify for a loan in that category.

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Source: MotorbikeWriter.com