For most people powersports finance and insurance are prerequisites of buying a new motorbike or ATV. The issue with so many shoppers however is that they fail to first check their personal and their financial status before doing so. Now if you do have dreams of going out and getting a cool ATV, dirt bike or a nice cruiser, then it is absolutely crucial that you spend some time before hand to sit down and fully work out your finances, because this is what will always come first. Here are just a few of the risks which you will be running if you fail to properly ascertain your status before you decide to go out and shop for that new vehicle.
Credit Score Rejection
If you have failed to check your credit score before you go shopping then it is absolutely a possibility that you sit down with the sales person, arrange the details of the sale, work out all of the details to set up the financing, and of course get excited about the prospect of soon driving home on a new vehicle. Just imagine being in this situation and then facing the embarrassment of being told that you failed the credit check and that you will not in fact be able to take the vehicle home.
Insurance Catch Out
There is a matrix to work out the cost of the insurance and that matrix is essentially a calculation of risk. This includes how much of a risk you are, which is based on your history, it also calculates what level of risk the vehicle poses, for this reason higher powered machines are more expensive. Now if you are not first aware of what you can afford each month for insurance then you could easily get caught out when you find the bike of your dreams, and then discover that the insurance is through the roof and you will not be able to afford it. Worse still, you could actually buy the vehicle and only afterwards learn that the insurance is going to cost a crazy amount each month, leaving you stuck between a rock and a hard place.
Ultimately this is about managing expectation, it is about not getting overly excited for a vehicle which you simply cannot afford. This is far less likely to happen if you have a clear indication as to what your budget is, before you go out shopping. If however you have no idea what your spending power is or what your budget is, then you can easily get swept away with a certain vehicle, only to discover that you have no chance of affording it at all.
There is just no point going through this level of disappointment, especially when it is just so unnecessary. Calculate exactly what you can afford, check out your credit rating to see what you can borrow and then go and get that vehicle without any disappointment.