Find the perfect bikeNow, this might seem like an obvious first step to take, but, nevertheless, your first step is to find the bike you would like to purchase. This means that you will have to go bike-shop hopping until you find the perfect one. Be sure that you buy your bike from a registered bike shop to avoid having your leisure finance rejected. And, it’s important to note that if you are purchasing a second-hand bicycle from a friend, leisure finance won’t be granted to you.
Have a depositWhen applying for finance on any asset, it is always advised that you have a deposit available. The deposit you pay will vary, and it will be dependent on the loan amount your financial institution gives you. To be on the safe side, have a 10% deposit ready on hand, especially if you want to buy a new bike. A deposit is always payable on a new asset, but it also depends on where you choose to buy your bicycle.
Apply for your bicycle financeNowadays, it is quite easy to apply for almost anything over the internet. Go online and find out which financial institutions offer bicycle financing. Most application processes will take you approximately 20 minutes to complete, and these online websites will provide you with an instant estimate of how much you might pay throughout your payment period. You might already have a guesstimate of how much you’ll be spending on your dream bike, but you might be asking yourself how long the repayment duration will be? Well, this depends on your budget. The duration period can range from 12 to 36 months. Keep in mind that the shorter the repayment period, the higher the amount you will pay, and vice versa.
What you needThere are a few documents you will need when applying for your financing. Usually, you will need to send two separate documents to the bike dealer where you will be applying for finance. This is because both the dealer and the institution need to verify your details for approval. What you need to take to your financial institution:
- Identity documents
- Proof of income
- Valid driver’s license
- Proof of residential address
- Original identity document
- Original documents that were sent to the financial institution
- Three months of bank statements