MOTORCYCLES

When I was in the automotive industry I saw the extension of car loans going into 54, then 60, then 72 months and with the extension of the loan installments came the inevitable negative equity. In general the longer the term you finance for the more likely you are to find yourself “upside down”. The motorcycle industry is no stranger to this as well and recently with the motorcycle finance companies offering loans that extend payments out as far as 72 months the problem is just getting worse. This is even more common with motorcycles that depreciate rapidly.

Just as with automotive loans when you extend the payments out over more than three years you begin to put yourself in a situation where your debt exceeds the value of your motorcycle. This is even more true if you do not put money down or even worse if you trade in a bike that you still owe on.

But how does this happen and what can be done to prevent it?

To begin with you need to look at the way the lender determines the interest. Some lenders use the rule of 78 in which you will be paying almost all interest at the beginning of the loan and then you have the other more preferable method of simple interest.

With an installment plan set up on a rule of 78 interest calculation you will be paying almost pure interest for the first couple of years and therefore will have virtually nothing in the way of equity. When you consider that statistically the average motorcycle owner trades bikes more often than every two years you can begin to see how this can be a problem.

The interest computation of choice is simple interest; as a matter of fact I personally would accept no other option. The way simple interest works is that it is calculated on the balance of the loan and if you keep the length of the loan at a reasonable time frame you will not run into the negative equity problem. If you extend the payments out over more than four years you will still get yourself in trouble just as you will if you skip payments.

If you have found yourself in a negative equity or upside down situation with your motorcycle don’t feel like there is no way out. A lot of people just give up and allow their bike to be repossessed and sold off at auction which just exacerbates their problem, now you owe money on a bike that you don’t have and can’t ride!

To avoid being caught in the “upside down” predicament on your motorcycle always look for a lender that will give you a simple interest loan on your bike. Secondly, always put some money down upfront to reduce the payments and the terms. Finally, never finance your motorcycle purchase over more than three years.

Gregg Hall is a consultant for online and offline businesses and lives in Navarre Florida. Get reviews on motorcycle gear and accessories at http://www.motorcyclegearandaccessories.com

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On the whole, motorcycle owners put more love and care into their machines
than do owners of cars or trucks. That “love and care” directly translates into
hundreds of dollars spent on customizations and maintenance. Sadly, between
30,000 to 50,000 bikes are stolen each year in the United States alone (based on
theft rates from 2000 through 2005). And to think, many of these thefts could have
been prevented with a little common sense and security.

Common Sense This should go without saying, but don’t leave the keys in
the ignition or the motor running when you’re not on the bike! Never leave your
bike in a dimly lit, hard to see location. Put the bike in your locked garage when you
are at home.

Locks and Chains One item every bike owner should purchase is a thick
U-lock or chain that can be easily spotted by anyone, day or night. This is a must-
have, unless its so big that it’s impossible to tote around with you. Simply wrapping
your chain through a wheel and your bike frame is not enough — you have to
mount the bike to a sturdy pole or clamp mounted in concrete. If the bike isn’t
mounted to a stationary object, a thief could just pack up your bike in a truck and
drive away.

Electronic Alarms Most modern bikes (larger than a scooter) have some
form of factory immobilization that prevents casual theft, but such immobilizers
alone won’t stop a determined thief. It’s therefore best to consider an electronic
security system, often called an “alarm.” A good alarm system does more than just
make noise, it has circuitry that prevents false triggers, adds secondary points of
immobilization, and sounds a loud siren only when a threat against your bike is real.
Some have digital tilt sensors, shock sensors and other sensors that trip the system
into action. One excellent electronic alarm from Japan is the CYCLONE 866F:
www.kiramek.com. The Japanese manufacturer of Cyclone also offers a 1-way
paging system that instantly alerts you when a threat occurs. The system is also
claimed to be very low-power, eliminating worry of your battery being drained.

Two-way Paging Alarms Over the last 3 years, some electronic alarms
have begun to include 2-way pagers. These systems allow you to both control the
alarm and receive notification of threats. Unfortunately, battery life for many of
these two-way pagers is limited to about 1 month, and the pagers
themselves can be easily broken by a simple fall from your pants pocket. Two-way
systems also may drain a bike’s battery quickly unless you ride it daily. Even so, for
some people the convenience aspect may outweigh the negatives for some bike
owners.

Tracking Systems As of 2005, some companies have come out with GPS
tracking systems for bikes that allow a stolen bike to be traced. While tracking
systems do have merits over other types of security, there are three important
downsides that must be considered: (1) battery drain on the bike, (2) service area
(tracking) coverage, and (3) monthly cost.

Most tracking systems require you to pay not only for the product itself but also
each and every month to keep the “service contract” alive. The long term cost of
tracking systems may leave a bad taste in the mouth of the average bike owner.
Think about how much you already pay per month (phone bill, mobile phone,
internet, etc.) and you can see why tacking on another subscription is cost
prohibitive.

LoJack is one tracking system manufacturer who does not charge any monthly fees,
but their least expensive bike system runs $595 and traceability is limited to the
coverage area of wireless towers installed by LoJack and some police stations. Once
your LoJack “protected” vehicle exits the coverage area, its off the map and not
traceable. Of course, LoJack will refund the price of the product, but that refund
doesn’t replace your bike. Nor does that refund cover any special installation fees
you might have paid or any insurance deductible you might have.

Conclusion Use a layered approach to security. Common sense dictates
that you put your bike in a location that is not an obvious target for thieves. You’ll
then need a chain or U-lock to prevent casual theft. And lastly, even if your bike
has a factory immobilizer, the addition of an electronic alarm or tracking system will
act as a significant deterrent to theft.

SECURITY RESOURCES:

CYCLONE Motorcycle Security

VISION 2-Way Paging Alarms

WORCH Tire Locks

ABOUT THE AUTHOR. James Wages has a BSEE from CSU Fresno and has worked
in the automotive security aftermarket since 1994.

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You’ve got a good chunk of money invested in your motorcycle and keeping your machine secure and safe is very important to you. There are several things you can do and adding a bike alarm is one of those things.

Motorcycle lovers have proven to love their bikes more than the average car owner investing quite a bit more money on them, especially in customizing them.

Each year more than 50,000 motorcycles are stolen. That’s astounding and each year the numbers continue to grow which is of great concern. And what’s really sad is that probably 75% of these thefts could have been prevented.

1. Think Smart

Common sense can go along way towards keeping your bike safe. Never leave the keys in the ignition if you aren’t on the bike. Don’t ever leave your bike in a way that would encourage someone to try to steel it.

2. Light It Up

Always park your bike in a place that is well lit and exposed to activity by people passing by. Never park it in a dark area such as an alley as it makes a great target then. Try to park in parking spots designated for motorcycles as they are commonly towards the front of the parking lot.

3. Bike Lock

A bike lock is a great way to ensure your bike stays right where you put it. By securely locking your bike chances are it will be bypassed for a simpler target.

There are several different styles of bike locks available each with a purpose so you will want to do some research to ensure you get the best style locks for your bike.

4. Bike Alarm

Your bike should have an immobilizer so that a theft can be stopped before it occurs. With an immobilizer it isn’t worth your thieves’ time to try and steal it. It’s great for you.

Your bike alarm should also make plenty of noise. This will attract attention and scare off the thief before more damage can be done.

5. Two Way Paging

Many of the newest alarms offer two way paging which lets you not only become notified if there is a threat or problem, but also lets you control the alarm.

6. GPS

Tracking systems are a great way to keep tabs on your bike and they offer global coverage. They do however have a monthly fee attached to them.

7. Accessory Locks

Don’t forget to also lock your accessories. This means your saddle bags, helmets, and chain, or any other potential target.

8. Alarm Warnings

Place alarm stickers on your bike letting others know that you have your alarm on your bike. Make sure they can easily be seen so that they can serve as a deterrent.

Layering your motorcycle security will increase your ability to keep your bike safe. Start with the bike alarm and incorporate these great ideas to make sure your bike stays right where it is suppose to be.

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