What You Need to Qualify for Finance

Last week I touched on some of the advantages of financing your motorcycle versus paying cash, in this week’s blog I want to chat about what you need to apply, qualify and get the best finance deal for your needs. The requirements vary from bank to bank but generally they are as follows:

  1. A barcoded ID Book or ID Card.
  2. A minimum of a learners licence.
  3. Proof of residence in the form of a utility bill, such as water/lights bill. Clothing or retail account or bank statement.
  4. Proof of income, 3 months’ payslips.
  5. The bank may request 3 months bank statements.
  6. A minimum salary of R6500.00 per month.
  7. You are permitted to purchase for a direct family member under certain conditions.

Although some companies/dealers advertise finance without a learners licence this should be considered more as a personal loan which often attracts a far higher interest rates and it should be noted that you will not qualify for insurance. I never suggest this route as firstly riding a bike without a licence is breaking the law, and the cost of the loan if far higher. Applying for a learners licence is a lot easier than it used to be and can easily be done within 10 days in most areas/municipalities.

Do not make the mistake of applying for finance on a number of motorcycles at a number of different dealerships as this could affect your application negatively if you are seen to be over active. A dealer may draw a finance contract on the motorcycle you had no intention of buying which would have to be cancelled before you finance the bike you really want. Rather take your time find the bike you want and apply for finance.

Once you have found the bike of your dreams make sure your dealer’s finance and insurance consultant applies through all the banks and negotiated the best rate for you. The consultant/manager has to offer you various products by law which are for you and your families protection, you have the right to waive these products if you feel you do not require them but take a moment to listen, proof of this is recorded. Take the time to go through your contract and question any charges or T&C’s . If you are purchasing a pre-owned motorcycle the one product I would highly recommend is a comprehensive warranty, it’s like a medical aid, you never know when you are going to need it until you need it!