Tips for Buying and Financing Your First Motorbike

There's something about owning your first motorbike that's hard to put into words. It's more than just a vehicle - it's freedom, excitement, and adventure wrapped into one. But as thrilling as it is to get on two wheels, the process of buying and financing your first motorbike can feel a bit daunting, especially if you're new to it all. 

At AFS, we've helped countless Aussies finance their dream bikes, and we know the ins and outs of what it takes to make a smart purchase. So, if you're ready to hit the road for the first time, here are my top tips to help you navigate buying and financing your first motorbike.

Pick the Right Bike for You

Before diving into the financing side of things, you've got to pick the right bike - and that means thinking practically. Your first motorbike should be something you feel comfortable riding, not just something that looks good. Consider your experience level, the type of riding you'll be doing, and your budget.

For more new riders, it's best to start with a smaller engine size, usually around 250cc to 500cc. These bikes are lighter, easier to handle, and generally more affordable. Once you've built up some confidence on the road, you can always upgrade to something bigger.

At AFS, we see a lot of new riders finance models like the Honda CB300R or the Yamaha MT-03 - both are great starter bikes with a good balance of power and control.

Set a Realistic Budget

Now that you've found the bike that suits you, it's time to set a realistic budget. Remember, the cost of owning a motorbike goes beyond the purchase price. You'll need to factor in things like:

• Insurance
• Protective gear (helmet, jacket, gloves, etc)
• Registration
• Servicing and maintenance

Be honest about how much you can afford, not just in the short term but also over the life of the loan. AFS offers flexible financing options, so whether you're looking for a secured or unsecured loan, we'll help you structure it to fit your budget.

Understand Your Financing Options

There are a few different ways you can finance your first motorbike, so it's important to understand your options:

• Secured Loan: This type of loan uses the motorbike as collateral, which means the lender has the right to repossess the bike if you default on payments. Because it's less risky for the lender, secured loans tend to come with lower interest rates.
• Unsecured Loan: With an unsecured loan, there's no collateral involved, which makes it riskier for the lender. As a result, interest rates are typically higher, but the process can be quicker.

At AFS, we offer both secured and unsecured loans for motorbikes, so no matter what your financial situation is, we'll work with you to find the best option.

Get Pre-Approved

One of the best ways to take control of the financing process is to get pre-approved for a loan. Pre-approval gives you a clear picture of how much you can borrow and what your repayments will look like. This not only helps you set your budget, but also gives you confidence when you walk into a dealership.

At AFS, we make the pre-approval process simple and straightforward. With pre-approval in hand, you can shop for your bike knowing that your financing is already sorted, and it puts you in a stronger position to negotiate with sellers.

Factor in Insurance Costs

Motorbike insurance in non-negotiable. In Australia, you're legally required to have Compulsory third Party (CTP) insurance, but we'd strongly recommend looking at comprehensive coverage, especially as a new rider. You're more likely to have an accident in your early riding days, and comprehensive insurance covers damage to your bike as well as other people's property.

At AFS, we always encourage riders to factor in insurance costs when budgeting for a bike. We'll help you calculate your monthly repayments with insurance in mind, so there are no nasty surprises down the track.

Choose the Right Loan Term

When financing your motorbike, you'll need to decide on a loan term. A shorter loan term means higher monthly repayments, but you'll pay less interest overall. A longer loan term gives you lower monthly repayments, but you'll end up paying more in interest.

Think carefully about what fits your budget. While it can be tempting to stretch the loan out for lower repayments, keep in mind that the longer the term, the more you'll end up paying in the long run.

AFS offers flexible loan terms, so whether you want to keep your repayments low or pay off the loan quickly, we'll help you find a solution that words for you.

Don't Forget Gear and Safety

Safety should always be your top priority as a new rider. When budgeting for your bike, make sure you set aside enough for high-quality safety gear. A helmet is a must, but you'll also need protective clothing like a jacket, gloves, and boots. It's worth spending a bit more to get gear that will protect you properly in case of an accident.

Remember, the right gear can make a huge difference to your riding experience and your safety on the road. At AFS, we always remind new riders to factor in these essential costs when they're planning their purchase.

Final Thoughts

Buying and financing your first motorbike is a big decision, but with the right planning and guidance, you can hit the road with confidence. Start by choosing a bike that matches your experience level, set a realistic budget, and understand your financing options. Don't forget to factor in insurance and gear, and always prioritise safety.

At AFS, we're here to make the financing process easy and stress-free. Whether you're after a secured loan with low interest rates or need help getting pre-approved, our team of experts will work with you every step of the way.

Ready to buy your first motorbike? Talk to AFS today, and let's get you on the road with a financing plan that suits your needs.