Avoiding Common Mistakes in Applications for Motorcycle Loans with a Florida Credit Union

A lot of people love motorcycles. It is a way of life for many, in fact. And this also means that lots of people look for motorcycle loans with a Florida credit union. This is a very clever move, as it means that they can get a really good deal. However, there are still a lot of mistakes that they make, and they can easily be avoided.

Mistakes People Make when Applying for Motorcycle Loans with a Florida Credit Union

1. They shop for a motorcycle before they shop for a loan

It is very common for people to look for the bike they want and then find out whether they can get a loan or not. Imagine the disappointment if you had seen the Harley Davidson of your dreams and get your hopes up, only to then find you can’t get a loan for it! Make sure you know how much you can get, therefore, before you look for your bike.

2. Taking out a loan without looking into the terms and conditions

If you have never had a motorcycle loan before, you probably don’t know what to expect. You might not know about the different loan constructions, the different lenders, interest rates, terms and conditions, and so on. If you have already decided that a credit union loan is the way forward to you, then it is likely that you have done your research already. But even then, you need to find out which terms and conditions are associated with the loan.

3. Borrowing more than what is needed

Let’s say that Harley Davidson you want is $20,000 and you can actually get a loan for that. But perhaps you also have $5,000 in savings. It is a much better idea to put down those savings and only take out a $15,000 loan, even if it makes your bank balance dwindle all of the sudden. The less you borrow, the less you pay each month, and a bike costs quite a bit of money each month as well. You don’t want to end up with a motorcycle you can’t afford to ride.

4. Forgetting to ask the right questions

There are a couple of questions you need to ask your lender, including:

  • Whether the interest rate is fixed or variable and, if fixed, for how long.
  • Whether the interest rate could ever change and, if so, when.
  • What would happen if you make a 30 day late payment, also in terms of the interest rate.
  • What would happen if you make a 60 day late payment, also in terms of the interest rate.
  • How long your loan will run for.
  • Whether, if you have an installment loan, it uses simple interest or the rule of 78. This is important for possible early repayment fees.
  • Whether you have to put any more down.
  • Whether you have to have fully comprehensive insurance.
  • Whether you have to pay for registration.
  • Whether you have to pay any administrative fees.