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Before you head out to a motorcycle store Austin, you need to be aware of the important points related to motorcycle financing. Lenders offering motorcycle loans typically have a far higher credit score cut off compared to those who offer automobile loans. It applies in all cases, irrespective of whether or not your credit history is good. This is primarily because of the following two reasons: • Difficult repossession It is much more difficult repossessing a motorcycle in good condition, than it would be in the case of an automobile. Because of this simple reason, defaulting on a bike loan is a greater risk to the bike loan lender, than it would have been for an automobile loan lender. The number of two wheelers is on a steady rise, and increasing number of riders coincides with an increase in the chance of damage to the motorcycle, both minor as well as major. This would result in the lender acquiring a lower price on repossessing a bike if the owner opts for bad credit instead of clearing off their loan. Irrespective of whether the damage to the bike is caused by the owner or the repossession agency, a motorcycle fetches a far lower amount when repossessed, in comparison to other automobiles. This logic is responsible for the high interest rates on motorcycle loans for both good and bad credit, as well as the lower percentage of approvals compared to other vehicles. • Quick depreciation In most cases a motorcycle tends to depreciate at a pretty fast pace. Also, accident rates are higher for two wheelers than for other vehicles. A number of people refuse to clear their loans if the bike gets damaged in an accident. These cases result in higher defaults for the lenders. This also contributes to high interest rates on bike loans and the difficulty in getting them approved. • How you can increase your chances of getting a loan approved Make sure that you understand your credit score thoroughly. Check your credit report meticulously for errors, and get them fixed before submitting a loan application. Also try and clean up as much of your credit debt as possible – it makes a big difference in getting approved since lenders do not approve of maxed out credit cards. Ensure that you spend enough time hunting around for the best loan to suit your purpose, and not simply opt for one that is offered by any motorcycle store Austin. Author Resource: The Author is conveying information about Austin Polaris Dealer and Motorcycle Store Austin. You're probably thinking, everyone says that, so, what's different here. It's the commitment of quality, genuineness, and a guarantee that values your time and interest.
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