Motorcycle dealers will often lure potential customers by offering deals to buy on credit alone. This is possible because they will have made a business deal with a finance or leasing company.
On the other hand there are those who have had the motorcycle repossessed, perhaps because they are in the same position as those who have their motor vehicles repossessed – they had defaulted on the instalments, perhaps because they couldn’t afford to pay them from their monthly budget.
However, not all of them who purchased the loan through instalments fall into this category. Indeed, credit terms could be a family financial management strategy.
Basically this is quite simple. In managing their finances there is a priority scale. There are so many items of expenditure items that must be considered. Each person’s expenditure items are different. Again it depends on the priority scale.
There are many reasons why people choose a more convenient payment method in the purchase of a motor loan. For example, the choice falls when faced with a situation where there are two urgent needs that are both important. An examples would be when funds are needed to start a business that at the same time requires a motor to sustain the it.
Reducing the capital to open the business to buy the motorcycle for cash may be less wise. Indeed, it must be considered how much the whole business will depend on the result of having a motorcycle. As much as possible, set aside the profits of the business for the motor installments.
Another reason to buy a motorcycle on credit is to maintain a reserve fund in the business account. Right now the price of a new motor is in the range of tens of millions of dollars. But if you buy in cash it could suck in actual savings balances that should be functioning as an emergency fund.
Yes, buying a motorcycle on credit has no interest charges. Besides motor credit including consumer credit which have relatively high interest rates. Think wisely again, look closely at the productivity gained from the motor. You may somehow be able to find an alternative way to reduce the cost of daily transportation.