Motocross Bike Finance – Fund your new Dirtbike Purchase

Remember to use finance responsibly and only if you can comfortably afford it – a piece of advice I once read advised “Only purchase something you can afford 2 of” – what this simply means is if you are going to take out finance and it will cost £150 per month, make sure you can afford £300 per month. Although I don’t follow it personally, I cant help but think this is very good advice.

Are there other options to taking out Motocross Bike Finance – maybe your parents can lend you the money and you arrange a monthly repayment plan. If not your parents, maybe your employer may lend the money to you and take it straight out of your wages.

How secure is your job? Will you be able to continue to make the monthly payments, whats your backup plan if something happens and you cant afford to make the payment one (or more) months.

Never take into account when calculating if you can afford the finance a promised pay rise / sum of money – it unfortunately may never happen. Base the affordability on what you can afford now – if a pay rise is on the horizon then why not wait until the rise hits your bank account and then look at how much you can afford.

Put down as big a deposit as you can afford, this way your have to borrow less money (and pay less interest).

If your financial circumstances change for the better and you can afford to pay off the loan early will you be able to? Check this out with whoever you take the loan with and see if there is any penalty involved.

Get someone you trust to read through any finance agreement forms, as they are tricky at the best of times to understand.

If you intend to purchase your new motocross bike, and are buying from a shop, they may offer their own finance agreement – The shop will usually make some commission out of this so there may be some negotiation room on the price (or at least some new kit or spare tires). Even if the shop offers finance, still shop around as the deal they offer on the finance may not reflect the great deal they offer on the bike.

Your bank may have a “special offer” deal on a finance package, so this is always a good starting point, at the very least your have a guide price to how much you can expect to pay per month for your new dirt bike.

You may be looking at brand new mx bikes, but remember the bike is only “brand new” the first time you ride it, very quickly you will still be paying for a brand new bike, but it is 6 or 12 months old.

Getting a Brand New Last Year Model can offer a great saving, many bikes and models dont change one year to the next except for a few minor changes, so although the bike is last years model its still a great bike and a nice bit cheaper. It may be worth waiting a month or 2 until the new models come out, plus this will give you time to save a bigger deposit or research further good finance deals.

If you decide that motocross isn’t for you, but have taken out finance, you still may be tied into a agreement – even if you sell your bike it might not be enough to pay off the finance you owe. Or worst still you can injure yourself and be unable to ride for a extended period of time, but the payments will still need to be met.

Try putting aside for 4 months the amount your have to pay to see if you can cope – consider your be going motocrossing on your new bike therefore you may not have as much spare cash – the money you have saved you can use as a deposit or buy some kit. This 4 month period will also be a good test to see if that burning desire for a new bike still exists, or if you are content with your existing one. Consider upcoming expenses when budgeting – xmas, birthdays, holidays, weddings etc all cost unexpected money, you dont want to be left short.

Most finance companies will consider your application to buy a motocross bike even if you have a poor credit history. In these circumstances the rates depend much on your own personal financial situation and your rating with the company and how much you will get in finance towards your new bike depends on your incomings and outgoings, with your current credit rating being taken into consideration as well.If your credit rating is good then motocross finance rates can be as competitive as 5.9% annual per cent loan rates and you can have your motocross bike purchased within days. It is far better to finance your motocross bike through dedicated loan companies that insure the loan up against your bike. This means any default on repayments means you may find your bike being seized back off you. These rates are highly competitive and far better than considering the pay day loan companies that have sprung up across the UK since the financial credit crunch of 2008 started.

Pay Day loan companies are as active now as they ever have been but with eye-watering interest rates you should do well to avoid using them to finance any purchase of more than £100. A motocross bike can cost anything from around £2,000 to about £14,000 depending on many factors including size, make, design and performance.

It may certainly be cheaper to buy second hand motocross bikes from online trading sites like eBay (see some mx bikes and their prices here) but financing this purchase would mean buying up front. There may be a way however if you get your finance direct through a lender that insures your purchase with your bike to have them loan you the money before you buy the motocross bike.

RPA MX Ltd does not offer any finance, nor do we have any official financial qualifications – this page is here to help you out, and not to give professional advice.