Disclaimer: We are not finance experts, any decision that you do take should be consulted with a financial professional. This in no way construes as financial advice. This is for entertainment purposes only. This is writing about experiencing and evaluations that have been made. You are solely responsible for the decisions that you take going forwards regarding financing.
So you have got a pit bike in mind and you want to explore the financing options that you have available to you.
Well there are luckily quite a few ways you can go about it.
Whether that’s getting direct finance from the company you are buying it or simply through means of your own personal finance with a credit card etc.
Obviously, you will very likely know the ins and outs of the credit card formality so we thought we would discuss here a bit more about the programs that are available to you at least in the UK – and a few things to consider to see whether you are eligible for financing.
The Advantages of Finance
Now there is one great advantage to financing your pit bike and that is that it allows you to better manage your cashflow. Even if you can fund the pit bike all at once, depending on the deal you can get, it might be better to take the finance route.
It’s better for your cashflow to take a hit spread over 12 months rather than all at once. Even more so if you can get a 0% finance deal, as you know have inflation working on your side to actually make the vehicle potentially cheaper.
If you’re really financially savvy you can carry out a process of stoozing.
Where the money that you would have spent on the vehicle right away is actually earning interest – so you are essentially – getting the vehicle at a discount. Particularly worthwhile on the more costly vehicles.
Not only that, when you purchase on credit there are often times an array of policies that protect you as a consumer that other lines of purchases cannot. Again, this is a very specific and individual case – so it is 100% up to you – to carry out your due diligence when it comes to financing and uncovering the potential benefits that you can carry out.
What do you want to look for?
Again, we are going to talk about financing generally through a retailer.
Now this can be through a market place, the brand itself or more likely a branded store and retailer.
They often partner up with a credit finance company to help you with the purchase.
What they often want to see is whether you are eligible and this means satisfying an array of requirements.
What they want to look for is the generally the following:
- Your age (you generally have to be at least 18 years of age).
- That you are engaged in some sort of work, with a minimum income threshold – if we take the company Duologi – at the time of writing this, they are looking at around five thousand point at a minimum or that you are working a minimum of 16 hours.
- You are a UK resident and have been so for more than 3 years.
- They are also very likely to run a credit check report against you.
Now once you have proven that you are eligible.
It is actually, of course, worthwhile to pay attention to the deal that you are getting and be sure to compare that to other finance options for your pit bike deal as well.
What do you want to be paying attention to?
- The overall value of credit that they are offering you.
- Do they require an initial deposit from you? If so, what percentage or how much?
- What amount of credit does that leave you?
- How long do you have to pay it back over? Typically, they work on months basis e,g, 12, 18, 24 and 36
- Are you then expected to pay these in monthly instalments?
- Then how much are you paying back in total?
- What is the total interest of the credit? If any?
What you really want to be looking out for is zero percent finance deals over a long stretch of time where you are basically benefiting from the stoozing opportunity above – where you are i) not only benefiting from the interest that you are getting with the money being in your bank account instead of theirs and ii) the natural rise of inflation on the price of goods.
Now if you are a little unsure about any of the finance policies that you have uncovered – then of course – make sure that you contact them and find out what the deal is and have them spell it out like you are 5 and ensure that you are keeping all that information in writing.
So you can refer back to it any time that you are needing to.
Once you are happy with all the arrangements, it might even be worth doubling this up on your credit card in case there are any gas back rewards or vouchers that you can benefit from. Giving you even further rewards still for the purchase as well as the protection policies above that we have already mentioned.
Again, make sure you do your complete due diligence.
Of course, if you do have any questions – usually we would encourage you to get in touch with us but instead it is better to approach a financial professional or the company themselves whether you are getting finance directly from the retailer or a third party.
That being said, we will try our best – however we want to reiterate – we are not financial experts.
What we would like to encourage you to do – especially to the folk – that have experience with motocross financing to leave your experience down below and any additional pearls of wisdom that you can offer for those looking at getting some pit bike finance for themselves.