Getting a pre-approved used bike loan is financially very helpful when purchasing an expensive asset like a two-wheeler. The price can be beyond budget, especially if you plan to buy a high-end bike in good condition. That is where the advantage of pre-approved loans comes in. Having a pre-approval before shopping around makes you a better buyer for sellers knowing your finances are already sorted.
Getting a pre-approved bike loan for used motorcycles has numerous benefits. We have included some of them below.
Faster Processing Time
Whether you buy a second-hand bike from the owner, dealership, or an auction, processing the finance may take time to gain ownership. It could be a lengthy and time-consuming process with some lending institutions. However, if you already have a pre-approved used bike loan, the overall processing time gets reduced to a great extent. As a result, you can close the purchase quickly and bring your dream bike home.
You Have a Set Budget
By getting a pre-approved loan, you get an idea about the maximum bike loan amount you can borrow. Hence, you have a pre-determined budget while looking for a bike, thus avoiding a purchase beyond the means. With a pre-approved loan for used bikes, you know the price range of bikes to select from, helping you make a better decision without disturbing your finances.
More Purchasing Power
Another benefit of having a pre-approved bike loan is that it increases your purchasing power significantly. Approaching a seller with finance at hand sends a message that you are serious about the purchase and will surely buy if you get a good deal. As a result, you will receive better offers than if you approach them without finance.
More Negotiating Power
You will also get more influence in your negotiations and increase your purchasing power. Since sellers see you as a sure buyer, they will do their best to attract you and close the sale. Whether you demand a discounted price, free insurance, extended warranty, more freebies, easier bike loan eligibility conditions, or better terms and conditions, the sellers feel more inclined to bargain. With pre-approved finance, the fight would be easier for such perks.
Sellers Prioritise You
A pre-approved loan will certainly convince sellers to treat you like a VIP. The sellers will prioritise you once they know you have the finances ready. For instance, they respond to your queries more quickly than those simply browsing. They will perceive you as a more serious buyer and trade a better deal with you.
Auctions are great places to find good used motorbike deals. If you want to bid for a bike at an auction, you know the maximum bid you can make with a pre-approved used bike loan at hand. A pre-approved loan saves you from going to an auction blind and bidding in a frenzy without realising your finances and consequences. A pre-approved loan will prevent you from bidding for a motorcycle beyond your financial capacity.
Get a Better Bike
When you have a pre-approved bike loan, you know how far you can go to stretch your finances. You can stretch it a little to get a better bike rather than compromising with a motorcycle that comes within your budget. It could be a newer model with sportier looks, better mileage, or more advanced features. Since you can pay its cost in EMIs over flexible repayment terms, you can get a better bike you will be proud of.
Avoid Expensive Bike Loans
Another major advantage of getting a pre-approved bike loan is that you will avoid costly dealer finance deals. With your finances already sorted, you can avoid falling into traps like 100% bike finance, zero-interest bike loan, etc. Such deals seem beneficial but often attract higher interest rates and prove to be costlier.
Owing to all these benefits, getting a pre-approved used bike loan is beneficial prior to your search. This kind of financing is overwhelming and assists greatly with the purchase. These days, many NBFCs offer used bike loans at competitive interest rates and flexible repayment options. They help you obtain the necessary finance without burdening your budget. Know your bike loan eligibility and get your finance pre-approved by applying today.