Bike Finance Question

[Notj7]

Looking at a CBR 600, like it lots! I have a question about motorbike finance.

Let's say I'm paying £100 per month for so many months, and I owe say 4 grand on it. If after 1 month (now oweing £3900) I pay £900 off of it, can the finance be recalculated so I'm now paying less than £100 per month, or does this merely reduce the amount of months until I've paid it off?

Would there be any way to achieve the former or do finance companies not generally do this?

Thanks in advance guys

[Darth]

Mst finace deals will be calculted for a fixed term and interest rate from the off. The only way to pay a lump sum would be with a deposit at the time you bought the bike/took out the finance for the remainder.
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Harold_Shand wrote: I suppose it's like anything, you get your fingers burned when you start out, you learn from it and eventually become a complete arsehole about the whole thing.

[Handsome]

The only way to pay it off early is to ask for a settlement figure when you've payed a bit off...

Saying that when you get the paperwork it'll normally show you how much it is to pay off at say 12/18/24 months but you can phone up anytime and ask for a settlement figure...
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Previous Bikes...Honda NSR 125 RR...Kawasaki Zephyr 550...Suzuki SV 1000 S...Yamaha FZ8...Current Bike...Suzuki GSX-R 750...

[syl]

If you get a loan from your bank, you can get one that allows early repayment or overpayment with payment holidays and the like. I have had several loans from Natwest over the last 15 years and the repayments show up in online banking as a direct debit. I have had no problem cancelling it and setting up a new one (all online, with no human contact) for a lower amount, after paying off a lump sum - which is exactly what you seem to want to do. You have to make sure you get the right kind of loan though (variable rate, generally).

If you get finance from the bike shop, it's unlikely.
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Current bike: Kawasaki Z750S

[Wise1]

Deals vary from place to place, in general it works thus:

Illustration only of course.

Borrow £4,000
Interest over the period of 36 months £1,500

£5,500 owed and repaid at £152.77 over 36 months

So after month 1 you owe £5347, if you then pay off £900 you owe £4447 and so on.

Most will have an option to pay lump sums through out the term however what most dont realise is that your not being offered the ability to reduce the amount you initially borrowed, its simply reducing the total amount.

So be careful which finance option you choose, and if looking for a lump sum repayment option make sure that the amount your likely to pay in the future is coming off the amount borrowed and not the amount owed.
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Current - 2007 Suzuki Bandit GSF1250 - 1999 Suzuki TL1000R
Previous - GSXR750 SRAD, Fireblade, ZXR750, CBR600

[Ste]

Don't get finance unless it's a 0% deal on a new vehicle. Finance offered by dealers is so much more expensive compared to a bank loan.

https://www.moneysupermarket.com/loans/

Have you done your test yet?

[Wise1]

0% finance is they way to go on a new bike assuming you have the credit rating to support, but unfortunately in this day and age not many do.
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Current - 2007 Suzuki Bandit GSF1250 - 1999 Suzuki TL1000R
Previous - GSXR750 SRAD, Fireblade, ZXR750, CBR600