How motorcycle financing works – Find out!

For those of you who want to buy a motorcycle, but don't know how motorcycle financing works, we will find out below!

A motorcycle is often a popular transportation option for people because it is economical, fast, and cheaper to maintain.

This way, it ends up being a more advantageous, practical and accessible alternative.

However, even with this accessibility, some people still find it difficult to realize this dream.

Therefore, they end up resorting to financing. In today's text, you will discover how this service works.

So, be sure to check it out!

What is motorcycle financing?

In short, motorcycle financing, which can also be called CDC (Direct Consumer Credit) is an option for those who do not have the cash to buy a motorcycle.

In this way, the person interested in buying the motorcycle takes out a loan with a bank or financial credit institution to buy it outright from a dealership affiliated with the financial institution where the loan was made.

In other words, the payment contract is made between the financial institution and the customer purchasing the vehicle, the bank pays the full amount to the dealership and the motorcycle buyer pays the bank in installments.

So you know how motorcycle financing works, being a procedure between three parties, for the acquisition of the motorcycle.

What do you need to finance a motorcycle?

As a result, how you use your money and manage your financial life will greatly influence your ability to secure financing approval, as well as the terms and conditions offered.

In this sense, the financial institution you choose will analyze your financial profile and as a consumer, consulting the SPC and Serasa to obtain data on your financial condition.

In this analysis, your payment history, overdue debts, negative name, forms of consumption, etc.

It is also analyzed whether the person pays their bills on time or is late, in installments or in cash, and also their score from 0 to 1000 in the score.

See the score quality situation:

• From 0 to 300 is considered a low score;
• 301 to 500 is considered regular;
• 501 to 700 is considered a good score;
• 701 to 1000, the rating is considered excellent.

Furthermore, current income will be consulted to determine whether the interested party will be able to afford the financing payment, and it is always recommended to have a way to get extra money to pay off the financing.

How does motorcycle financing work: is there a minimum income requirement?

In principle, there is no minimum income requirement to obtain motorcycle financing.

However, the practice among financial institutions is to grant credit for purchases that do not exceed 30% of the income of the person interested in purchasing the vehicle.

In other words, if the person receives a salary of R$3,000.00 per month, the amount equivalent to 30% to pay the financing is R$900.00.

This means that the financing installments must not exceed this amount: R$900.00.

This practice is done because generally when a person uses more than 30% to pay their bills, they end up compromising their basic expenses, and consequently the risk of defaulting is much greater.

How does motorcycle financing work: where can I apply for this service?

This topic will highlight a summary of the financial institutions that offer the best financing conditions on the market:

Santander: rates starting from 1.9% per month and installments of up to 60 months.

Federal Savings Bank: monthly rate from 1.5% and up to 60 installments. 

Itau: offers rates starting at 1.8% per month, does not require a checking account with the institution, and also has the option of financing new and used motorcycles.

Bradesco: this bank charges fees starting at 1.9% per month and installments are based on your score.

BB: rates starting from 1.9% per month, up to 60 months to pay and 180 days to pay the first installment.

Honda Bank: offers rates starting at 1,95% per month and installments of up to 60 months.

Yamaha Bench: monthly rate starting from 2,19% and 72-month installments.

Remember, information changes as the economy evolves.

Tips for choosing motorcycle financing

Now that you've discovered how motorcycle financing works, see some simple tips to take before seeking this financial service.

1. Analyze your financial situation 

Write down the monthly payment amount you can afford for financing, organize yourself so you don't get into trouble.

Additionally, it is important to anticipate and prepare for the expenses that the vehicle will naturally incur, such as seasonal costs.

This way, it will be possible to know the real conditions for financing and do so in a more balanced way.

2. Research the model of your choice on the market 

What's your purpose in buying a motorcycle? For work, leisure, or long-distance travel? 

It is important that you search the market for the model that meets your needs.

Therefore, it is crucial to consider the engine's potential, functionality, safety, economy and ease of use.

In addition to knowing how motorcycle financing works, it's always a good idea to do some price research.

Therefore, get as much information as you can from the dealership and motorcycle resellers, so you can get the best price, you can even finance from 36 to 70 months.

Therefore, act with patience and wisdom when taking out financing to buy your motorcycle.

Conclusion

In this text you discovered in detail how motorcycle financing works, in addition, you will find some tips that will help you make the best deal. 

So, be sure to put them into practice to get the best deal.