Bike Finance
Buying a new or used bike can be a daunting experience, especially as the price of bikes continues to rise. It is a significant financial purchase, which can be stressful for those not familiar with the process.
Related: Are there financing options available for purchasing a motorcycle in South Africa?
We can help alleviate the pressure with a step-by-step guide to the finance process. It does not matter if you are buying new or used; if you're purchasing from a reputable dealer with an in-house F&I (finance and insurance) department, it can be stressful, but it's structured, and you can be assured of an outcome.
What is the average price range for motorcycles in South Africa?
Lifestyle Audit
The first thing you want to do once you've decided to buy a bike is to find out how much you can afford. This amount is not only the bike's monthly payment but also the cost of insurance, fuel, maintenance and emergency allowance. You will want to check your finances and find the amount you can comfortably afford, which is your repayment.
You can then work backwards to see what the maximum value you can shop for a bike is. Remember that most finance houses still consider motorcycles a leisure item, and therefore, interest rates will not be as favourable as they are for a car.
Choose your bike
It's a big decision: Which bike will serve you best during your finance agreement? Will it be a supersport, adventure, cruiser, or commuter? Carefully decide and then buy the machine that falls within your budget.
How do I test-ride a motorcycle before purchasing it in South Africa?
Applying for finance
Once you have a value and a bike in mind, you can approach your bike dealer to apply for finance. The dealer will do an affordability assessment to ensure that you can afford the bike, and then you will have to fill in a bunch of paperwork. You will also need to supply a copy of your ID, proof of income in the form of payslips or bank statements, and proof of residence not older than three months.
What documents are needed when buying a motorbike?
Paperwork done
Once all the applications have been submitted, the finance houses will come back with a finance offer and interest rate. You will then choose which one best suits you and sign the agreement. Once this goes through, the dealer will register the bike with the traffic department, and you will then come in to sign for it during the handover. You are then free to enjoy your new ride.
