19, Nov, 2020
Motor loan – buy your new or used motorcycle

Motor loan – buy your new or used motorcycle


A motor loan or motor loan is an installment loan that you can use to finance your new or used motorbike. Nowadays, a motorcycle is no longer only used for relaxing journeys during the weekend, but also increasingly for commuting, among other things to avoid traffic jams on Belgian roads. You can take out a motor loan for a motorbike with which you can only cruise in a fun way or a motorbike that lets you get to work or home faster. A motorbike or motorcycle loan can also be used at most banks to purchase a scooter or quad.

The amount that you can borrow from a motor loan depends on the bank. At some banks you can only finance the purchase price of your motorcycle with the motor loan. However, other banks give you the option to borrow up to 110% or even up to 120% of the purchase price. You can then use the extra loan amount for various matters related to your motorcycle. For example, if you want to finance your motorcycle insurance or the tax on entry into service with your motorcycle loan, then this is possible at some banks. At other banks it is also possible to pay for your motorcycle protective clothing with your motorcycle loan. How much you can borrow and for what you can use this borrowed amount differs between banks, so it is important to always compare this.

With a motorcycle loan, the conditions that apply to a personal installment loan also apply.. However, an additional condition applies to a motor loan; for example, you must be able to submit an invoice or order form for your motorcycle to the bank. This is because with a motor loan the interest rate is a lot lower than with other personal loans. The banks therefore want your motorcycle loan to be used for the purchase of a motorcycle. If you cannot submit an invoice or order form, you cannot finance your motorcycle with a motor loan. It is, however, possible to finance this with a personal loan, but the interest rate will be higher here.

You can borrow for both a new and a second-hand motorcycle. Most banks consider a motorcycle as new if it is not older than two years. At some banks, a motorcycle is new as long as it is not older than three years. If your second-hand motorcycle is older than this age, the interest rate that you are offered for your motorcycle loan will be higher than the interest rate for a new motorcycle. This is because banks assume that an older motorcycle will last less than a new motorcycle and that people will be less inclined to pay off their loan if their motorcycle no longer works. That is why a higher interest rate is required for an older, second-hand motorcycle.

There is not really a difference between a car loan and a motorcycle loan. With a car loan you must also be able to submit an invoice or order form and it is possible to borrow more than the purchase price. With a car loan you also pay a higher interest rate for an older car. Most banks therefore do not offer a separate motor loan; with them you will then have to take out a car loan for your motorcycle. However, this is not a problem, since the interest rate for a car is just as high as the interest rate for a motorcycle. The only major difference between a car loan and a motorcycle loan is that some banks offer cheaper interest rates for green or ecological cars, and you cannot take out this type of loan for your motorcycle. There are few banks that offer this car loan for an ecological vehicle.ING and Belfius, for example, are two of the few banks that do offer this ecological car loan.

If you meet all the conditions for taking out a motor loan and the bank has received the invoice or order form from your motorcycle, you will receive the amount borrowed in one go on your account. This allows you to finance your motorcycle and at some banks also things such as your motorcycle insurance or road tax.

One month after you receive this amount, you start paying off your loan. This is done by repaying part of the capital with interest on fixed maturities. This is agreed in advance with the bank and included in the repayment plan. The advantage of this is that you always know how much you have already paid off and how long you will have to pay off your loan.

The duration of your loan depends on the amount borrowed and how much money you can miss each month. It is, however, recommended to pay back as quickly as possible. This is because you will soon be debt-free again, and the interest that you will have to pay on your loan will also be lower with a faster repayment.

The advantage of a motor loan is that your savings account can remain untouched. This way you can still use your savings account later when necessary. With the motor loan you can spread the costs associated with your motorcycle over time and pay it off at your own pace. However, you must know that borrowing money also costs money and that borrowing for a motorbike is therefore more expensive than saving for a motorbike. So if you want to take out a motorcycle loan, you might opt ​​to use part of your savings to finance your motorcycle. This way, you will have fewer costs on your motor loan and you will have a reserve of savings if you would need this in the future.

The interest on your motor loan is only deductible from your taxes in exceptional cases. This is only the case if you use your motorcycle for travel between your home and workplace or for professional travel. You must therefore opt to prove your actual professional costs with your tax return and not to opt for the fixed sum fixed by the government.

When searching for the most advantageous motor loan, it is important that you compare the various loans offered by the banks. There is a big difference between the interest rates offered. You can make a free comparison on our website. Thanks to the independent comparison platform you can see what the interest rate of your loan will be, how much you will have to pay annually and how long it will take before your loan is fully paid off.

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