Motorcycle financing through the bank: how does it work and how to do it?
Do you know how it works and how to finance a motorcycle through the bank?
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Who likes riding a motorcycle?
One of the most popular means of transport here in Brazil, motorcycles are extremely versatile and, in a way, more affordable than cars.
Used for various purposes – such as transportation, deliveries and even ride-sharing apps – motorcycles are usually chosen by those who don't have time to waste in traffic and want to get around their routine more quickly.
Taking advantage of the fact that this week one of our focuses is the automotive sector and the financing possibilities that each of them has, we decided to choose this very versatile means of transport.
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Therefore, continuing with the content aimed at drivers – and now motorcyclists – on duty, today we are going to talk about motorcycle financing for banks.
Here you will learn how this type of contract works for those who want to purchase their motorcycle with a little help from financing.
Before we get into the subject of “bank financing for motorcycles”, let’s talk a little about the relationship Brazilians have with this means of transport.
It may be for a profession, for passion or even as a hobby, but the truth is one: motorcycles are gaining more and more space on the streets.
And that's not just us saying it! According to data from the National Traffic Department (DENATRAN), the number of people with category A licenses – the category required to travel on two wheels here in Brazil – has been growing significantly in recent years.
To give you an idea, in 2016, the agency indicated the existence of approximately 28 million people qualified in this category.
Today, about 6 years later, that number totals almost 34 million qualified users. This represents an impressive growth of 17.5% in that period.
And as already mentioned at the beginning of the topic, Brazilians have been using this means of transportation both for work and for their personal lives. This has also led to an increase in the demand for motorcycle financing.
A true nation on wheels!
The importance of motorcycles and motorcyclists for Brazil in recent years
Despite this visible growth, motorcycles are far from being unanimous.
Many people still have some reservations about this type of transport.
But even people who are not too keen on motorcycles circulating around every day need to recognize the importance of this means of transport for Brazil in the last 2 years.
While Brazil was facing difficult times due to the COVID-19 pandemic and the vast majority of us were isolated most of the time, it was the motorcycle couriers who helped keep life as close to normal as possible.
With delivery services, motorcyclists were always helping to make isolation less difficult.
And currently, the growth in demand for motorcycles for work or even leisure has meant that the search for motorcycle financing through banks has increased even more.
And that's what we'll talk about in the next topic!
What is motorcycle financing through the bank?
We have reached the topic where we address the main theme of our content.
When purchasing a higher/significant asset – such as a house or car – the buyer may have the option of taking out financing.
And it would be no different with motorcycles.
Motorcycle financing through a bank – or responsible financial institution – consists of a type of loan for the purchase of the motorcycle.
This way, it is possible to purchase the motorcycle in cash at a specific dealership or store that is a partner of the institution that granted the financing.
How does motorcycle financing through a bank work?
Motorcycle financing through a bank has a dynamic that is very similar to any other type of financing.
Through it, the buyer can request a type of 'loan' from the bank or financial institution of their choice.
After going through an evaluation process, if approved, the institution grants credit to whoever wants to buy the motorcycle.
This way, the buyer can purchase their motorcycle outright.
The installments and interest rates are agreed between the parties and, subsequently, the debt is paid directly to the institution responsible for the financing.
What are the steps when taking out motorcycle financing through the bank?
After learning more about what motorcycle financing through a bank is and how it works, it's time for you to learn how to obtain this financial agreement.
Below, you will learn the most common step-by-step guide for anyone who wants to finance a motorcycle through the bank and put their dream motorcycle in the garage!
In the first step, the ideal is for you to search among banks and financial institutions to find the one that offers the best conditions.
Although all of them include interest rates, the percentage may increase or decrease from institution to institution. It is also possible to simulate the financing to understand how it will be.
Therefore, researching the conditions can make all the difference.
Next, ask the chosen institution about the possibility of releasing financing. At this stage, it is ideal that you already have in mind which motorcycle you want to buy.
After getting informed, gather the documents requested by the institution and present them to them.
The bank will then carry out a credit analysis and assess whether or not it is possible to grant financing and, if so, under what conditions.
If approved, just sign the documents and become the newest owner of the motorcycle of your dreams.
Conclusion
As you can see, the way a motorcycle loan works through a bank isn't difficult at all, right?
And if you're looking for a motorcycle for work or even just to get around, financing can be a good option.
But also keep in mind that this type of agreement requires a certain amount of financial preparation. Therefore, analyze your financial situation before opting for financing that could disrupt your budget.
Did you like this content? Then why not take the opportunity to read it too How to finance used cars? Find out now!
