Reasons to Lease a Motorcycle
The main disadvantage to leasing a motorcycle is that you have to turn the keys back in at the end of the lease and you don't have anything to show for your money. However, not every motorcycle owner rides his motorcycle everyday, so some bikers prefer to pay only for the time their motorcycle is on the road. This is one of the reasons why they choose to lease a motorcycle instead of buying.
Knowing What to Look for in a Motorcycle Lease
Understanding a motorcycle lease is a frustrating and a complicated process. A motorcycle lease has many stipulations that you must understand and adhere to before agreeing to sign. To know if you are getting a fair deal on a motorcycle lease, you'll have to do your homework.
Know the Language of Motorcycle Leasing
You'll need to know the language of leasing when looking into a motorcycle lease. Learn lease terms such as the residual value, money factor, cap cost, cap reduction, and more. Be aware of fees and charges in a motorcycle lease such as wear and tear fees, early termination clauses, security deposits, acquisitions and disposition fees etc… A motorcycle lease shouldn't be taken as lightly as you might a motorcycle loan. One missed or misunderstood item in a motorcycle lease agreement can lead to hundreds of dollars lost.
Negotiating A Motorcycle Lease
A motorcycle lease is like an auto lease. A motorcycle lease contract should follow the same structure as an auto lease; therefore, you should negotiate a motorcycle lease the same way.
Many people think that you should negotiate the lowest lease payment. In reality, it is more important to lower the motorcycle purchase price, which will lower your capitalized cost resulting in a lower payment. The capitalized cost and lease financing rate are negotiable while the residual value is not. To learn more money saving tips visit auto leasing tips from myAutoloan.com.
Buyout Amount of A Motorcycle Lease
Most motorcycle leases allow you to purchase your motorcycle at the end of the lease. The amount you owe to own the motorcycle is called the buyout amount. To determine if you are getting a good deal, compare the residual value of your motorcycle stated in the lease to the True Market Value (TMV) of your motorcycle from a pricing guide such as Kelley Blue Book (KBB). If the Truc Market Value ( TMV ) is the same or even better, you are getting a fair price.
If your motorcycle lease is about to expire and you wish to accept the buyout option, consider myAutoloan.com for your motorcycle financing. We at myAutoloan.com will provide you with several motorcycle loan offers from various lenders with competitive rates and terms. In most cases, depending on your credit, you can buyout your lease with a motorcycle loan from us with terms anywhere from 12 to 60 months.
Motorcycle lease buyouts will require paperwork. You will need to supply the license, title, registration fees and use tax to the lender. To make owning a motorcycle easier we suggest applying for a motorcycle loan online and talking to a myAutoloan.com representative to weigh all your options before leasing. We will carefully guide you and advise you to the best way of getting the motorcycle you've always wanted.