Compare motorbike finance options in South Africa
Are you thinking of buying a motorbike in South Africa? If you’re worried about the costs, then motorbike finance can come to your rescue. There are various offers which you can take advantage of from South African lenders.
Our motorbike finance calculator will help you compare these loan offers by showing you the expected monthly repayments for each loan. On top of that, find out more crucial information about motorbikes and motorbike finance by reading the rest of this article.
Motorbike finance South Africa: General Overview
- Minimum loan amount: R10 000
- Maximum loan amount: R300 000
- Loan term: Generally varies from 6 months to 7 years depending on whether the motorbike is new or not
- APR: The Annual Percentage Rate includes the interest rate and other costs involved with taking out a motorbike loan. The maximum interest rate is 27.5%, but other fees such as service fee and initiation fee also apply.
What is motorbike finance, and how does it work in South Africa?
Motorcycle finance is there to help you buy and drive the motorbike of your dreams. It allows you to borrow the cash you need to make the purchase. In turn, you can pay back the money through affordable monthly repayments. There are also specialized motorbike loans such as:
- Ducati motorbike finance – This helps you to buy a motorbike at your chosen Ducati dealer. These are expensive, high-end Italian motorbikes and Ducati motorbike finance allows you to enjoy the excitement and thrill of driving a high-powered, state-of-the-art machine.
- Off-road motorbike finance – You can get off-road motorbike finance if you want to purchase a particular dirt bike. Typically, off-road motorbikes are a type of motorcycle that can be driven over rough surfaces like unpaved roads, sand, gravel, or mud.
- Used bike finance – As the name suggests, this type of loan is used for buying a second-hand motorbike.
Most vehicle finance institutions offer motorbike financing. The loan you receive can also be secured or unsecured. A secured loan means you use the motorbike as security for the loan. In such cases, you risk losing the motorbike if you fail to pay your monthly instalments.
What kind of motorcycle should you buy?
Thinking about which bike to buy can be confusing since there are so many available options. Here’s a checklist that helps you with your final choice as you shop around for the perfect motorbike:
- Motorbike type – Common types include sports motorbikes, standard motorbikes, dirt bikes, and cruiser motorbikes. It all depends on what you want to use the motorbike for.
- Motorbike brand – Some brands are considered more quality than others. The best brand is one that offers you value for your money.
- Engine capacity – This is typically measured in “cc” terms. The average range is between 50cc and 1500cc. Motorbikes with larger engine capacities are more powerful and vice versa.
- User-friendliness – Always test drive the motorbike before paying for it. In this way, you can figure out if it drives well and whether it has balance and easy handling or not.
- Other features – Things like height of the motorbike, adjustable seats, and easy to use controls ensure that the motorbike is safe to ride.
Choosing the best motorcycle loan for you
Deciding on the best motorbike loan is all about asking yourself the right questions and looking for the correct answers. Here are a few questions that will guide you on which motorbike loan is best for you:
- How much can I afford? – Choose a loan that lets you borrow the amount you need and can afford.
- How long do I need to pay back the loan? – Paying back the credit should also be a comfortable and affordable process. Choose the loan term that is suitable for you. Also, find out if the loan allows you to make extra payments in the event that you decide to pay off the motorbike loan earlier than expected.
- How much is the interest rate? – A lower interest rate means the total cost of your loan will also be lower.
- What are the other fees involved? – To avoid hidden fees that increase the total cost of your loan, find out as much as you can about any additional fees.
- Should I take a secured or unsecured loan? – A secured loan usually has lower interest rates since you are using the motorbike to guarantee the loan. However, you can lose the motorbike if you don’t pay the loan as per agreement. On the other hand, unsecured loans have higher interest rates but more flexible repayment terms.
How to apply for a motorbike loan
To begin with, standard requirements when applying for motorbike finance are as follows:
- a good credit score;
- a valid motorbike license or learner’s license;
- south African ID;
- a minimum monthly income that is usually above R5000;
- proof of income. (Bank statements or payslips that are less than 3 months old); and
- you should be at least 18 years.
Before applying, use our motorbike finance calculator for South African lenders. After choosing the right lender, click on the “Go to Site” button. This takes you to the lender’s website where you can begin the online application process.
Frequently asked questions
Can I get motorbike finance with bad credit?
There are loans for bad credit available in South Africa. Furthermore, some lenders don’t carry out a credit check on you when you apply.
Should I get a new or used motorbike?
New motorbikes are often more expensive than used ones. The important thing is to take out a loan you can afford to pay back. If you decide to buy a used motorbike, please note that older models, stolen, or damaged motorbikes do not qualify for motorbike finance.
Can I use the motorbike loan for other purposes?
Motorbike finance is strictly associated with the purchase of a motorbike. However, some loans also allow you to use the money to buy motorbike insurance.
What is the difference between variable and fixed interest rate?
Choosing variable interest rates for your motorbike loan means your interest payments will change over time. On the other hand, fixed interest rates do not change.
Use our motorbike finance calculator for South Africa
This quick motorcycle finance calculator helps you to calculate the monthly repayments for your loan. Enter the loan amount you want as well as the loan term, and then click on “Calculate Repayment.” This function allows you to pick the most affordable option.
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