Thinking about financing a motorcycle but not sure what steps to take? Knowing the necessary steps is of utmost importance to plan and not get into debt.
When done with caution, motorcycle financing can be an excellent option to acquire this as well.
If you want to buy a motorcycle but don’t have enough money to buy it in cash, a great alternative is financing. However, to do so, it is necessary to have a good financial control, to avoid falling into debt and end up losing the vehicle.
Therefore, treat the financing as an investment of your money, whose return will bring the motorcycle itself. But, it can bring damage when poorly performed. Check out the Low Interest tips to get you an excellent loan.
What is financing?
Financing a motorcycle means borrowing money from the bank or company to buy it, and repaying it in installments (with interest). In addition, for this to be done, the bank needs to make sure that you will make the due payments.
As a result, the bike will come out on your behalf at the time of purchase but will be alienated from the bank. If you fail to pay, the bank can take your vehicle back, and you will lose all amounts already paid.
But, as this process demands legal moves and a lot of spending, it is not in the bank’s interest to do so. Thus, if you are having difficulty making installment payments, it is best to contact the institution to renegotiate the debt.
Do all banks do motorcycle financing?
Not all banking institutions do this kind of negotiation, but it is not only banks that can carry out financing. Many car makers do too.
Ideally, you should check which banks and automakers have the type of finance that best fits your profile, and which ones have the lowest interest rates. By doing this analysis, you are already on your way to finding the best financing for you.
How to simulate motorcycle financing?
Performing and comparing simulations are excellent alternatives to see the differences between banks and companies providing the financing. Be aware that each one has different interest rates and for this reason the simulations can come out with very different prices.
The simulations can be done by going to banks and companies that provide motorcycle financing and requesting them. This will allow you to know the interest rates and the total amount your financing will have.
Let’s look at a practical example:
Suppose you fund $ 6,000 to buy a motorcycle through the Box. Thus, as the bank offers an interest rate of 1.24% and a repayment term of five years, the amount of each installment will be R $ 142.36, and the final financing expense will be R $ 8,541.60.
That is, you will be paying $ 2,541.60 of interest. In the end, you will have paid 42.36% more than the original value of the bike.
However, if you fund the same bike through Yamaha, which has an interest rate of 2.25% (much higher than that of Caixa), and gets a five-year repayment term at the bank, the value of each installment will be R $ 183.21, with the total amount of R $ 10,992.60.
Thus, you will be paying R $ 4,992.60 in interest and, in the end, will have paid 83.21% more than the original value of the bike (almost double the value).
Analyzing the situation, it is clear that 1.01% more interest rate caused an increase of R $ 2,451.00 in the total value, when comparing the values of financing at Yamaha and Caixa.
It is therefore advisable to check the interest rates at all banks that best fit your profile, so as not to be caught off guard with very high interest rates.
What documents to take to finance the bike?
When conducting the simulations, ask the person attending to you what documents are required to close the contract to make sure what the bank or company requests. This documentation may vary from location to location, so some funding providers may require more documents than others.
In summary, the most requested are: Identity, Individual Taxpayer Registration (CPF), Proof of Residence and Proof of Income (paychecks, bank statements, income tax return, among others).