Three Reasons You Should Consider Refinancing Your Motorcycle Loan
Refinancing your motorcycle loan is not always something people think about, but with interest rates and the cost-of-living climbing, there are several advantages that borrowers can capitalise on. Here are three reasons why you should consider refinancing your motorcycle loan.
Taking advantage of better deals
As interest rates rise, there will be an opportunity to compare your options and see if there is a better deal that suits your personal circumstances.
Motorcycle loans typically have a fixed interest rate, meaning the rate doesn’t change throughout the life of the loan. However, if you have taken out a loan in the last 12 months, then you might be paying a higher rate than you need to.
By talking to a finance broker, you can compare your options and see if there’s a more suitable product for you.
Extended loan term
If you’re struggling to meet your monthly repayments, extending the length of your existing motorcycle loan through refinancing can help lower your monthly payments. By stretching out the loan term, your payments become more manageable and might help you get them aligned with your current financial situation.
However, keep in mind that extending the loan term also means paying interest for a longer period, which could increase the total cost of the loan. It’s essential to carefully consider the overall financial impact of refinancing before making a decision.
Another reason to consider refinancing your motorcycle loan is to take advantage of additional features and benefits that may not be available with your current loan product. Some lenders offer loans with extra features, such as flexible repayment options, the ability to make extra repayments without penalty, or access to discounts on related products and services.
Some lenders may even offer additional benefits like discounted insurance premiums, roadside assistance or membership rewards programs. By refinancing your motorcycle loan with a lender that provides these added features, you can potentially save money and enjoy a better riding experience.
Before refinancing your motorcycle loan, it’s important to weigh the potential savings against the costs that might come with refinancing. These costs may include exit and application fees from your current lender, as well as any fees associated with the new loan.
Speak with a finance broker to help determine whether the potential savings or benefits outweigh the costs.