With some bikes costing more the cars, choosing how to finance to your next purchase can be a serious business. Some retailers offer really competitive credit schemes but remember to check the interest rates and terms of repayment before you make a commitment. Follow our handy checklist of finance considerations and you wont feel like your stuck half way up a steep hill in the wrong gear.
Top Tips
- Compare the deals, and especially the interest rates charged, by building societies, banks, independent finance brokers and dealer's own schemes.
- Always compare like with like - if you need to borrow £2,000 and would like to repay the loan over three years, ask each lender for details of the APR (Annual Percentage Rate) on a loan of this amount, the size of the monthly repayment over 36 months, and the total amount repayable.
- Don't forget to check if the interest rate is fixed or variable!
- Decide how much you can afford to pay per month. Paying off a loan adds to your running costs, so try to repay it as quickly as possible - total interest charges are lower for short-term loans.
- Borrow only what you can afford to repay, and always try to put down as much of your own money as possible.
- Consider a payment protection scheme.
- Get fully comprehensive insurance cover.
- Contact the lender if you can't keep up repayments.
