Novated Lease

Two Wheels – Why Not?

Thursday, 26 January 2012 07:14

Now that January is nearly over and most of us have had our summer holidays and are getting our work heads back on again, it might be time to review your transport and travel options for 2012.  But instead of getting out a loan to buy a car, why not get out a loan to buy a motorbike?

Most people think about motorbikes as being more for fun than for transport – it’s the whole biker thing.  But not every motorbike is a Harley Davidson and the original purpose of a motorbike was to get from one place to another quickly and easily.  And this original purpose hasn’t changed.  In these days of high petrol prices, a motorbike might be ideal as your only form of transport or as a second “car”.

Of course, before you apply for a motorbike loan, you need to make sure of a few things.  First of all, does a motorbike fit your circumstances?  For obvious reasons, if you have a family or if you need to take a lot of gear around the place, a motorbike won’t be the vehicle for you.  However, if you just need a set of wheels to take you to work or to pick up a few groceries (and we’re talking a couple of loaves of bread and a bottle of milk here, not a 10-kg sack of potatoes), a motorbike could well do the trick.  And, of course, if you like the idea of hitting the road for the weekend, a motorbike has a level of fun that a car can’t offer.

As well as the fun factor, motorbikes have a lot to offer, whether you are considering a larger cruiser or a nippy little motor scooter.  They’re usually more frugal on fuel, which is certainly a good thing if you’re in the process of applying for a loan and setting a budget.  It’s also good for the environment.  They are usually easier to find a park for, as they’re smaller.  Some institutions have space for motorbike parking that enables about four bikes to be parked in the space that would otherwise be taken up by a car – and these motorbike parks often don’t incur charges for parking.  In some places, motorbikes are permitted to go places that are usually reserved for buses or cars with more than one person, usually because they’re smaller and more nimble than most cars, and they don’t contribute as much to traffic congestion. 

Businesses could also do well to consider motorbikes for their company fleet, especially if your business involves delivering documents and other small items where speed counts.  The motorbike courier is part of the modern business world and offers good value for money because of the fuel economy.  There’s no reason why a motorbike couldn’t be added to your company fleet, either as an asset or as part of a novated lease agreement.

Another thing to consider when you apply for a motorbike loan is the licence.  You do need a separate motorbike licence to ride a motorbike, even though the road rules are the same whether you have four wheels or two.  Motorbike riding involves a different set of skills.  As with a car, you have to have a provisional licence for a time, and you have to comply with these conditions, which include the engine size.  Check the rules for your State/Territory before you start choosing your motorbike and thinking about loans.

And you also need to have the right safety equipment.  This means, at minimum, a helmet, but can (and probably should) include a jacket and trousers with protective padding, and possibly proper motorbike boots.  Good ones aren’t cheap, so you might like to talk to us about whether you are able to include the price of purchasing safety equipment in the amount you borrow, along with the motorbike loan proper.