What is a motorcycle loan?

A motorcycle loan is a tailored financial solution for purchasing a motorbike or dirt bike. In taking on a loan, you agree to repay the loan in instalments over a set period of time.

  • Competitive interest rates – Lower interest rates can save you money in the long run, so be sure to shop around and compare offers from various lenders.
  • Flexible loan terms – Choose a loan term that aligns with your budget and financial goals. Shorter terms generally mean higher monthly payments but less interest paid overall.
  • Loan amount – Ensure that the loan amount covers the cost of your desired motorcycle.
  • Repayment flexibility – Look for loans that offer flexibility in making extra payments without penalties. This can help you pay off the loan faster.

When it comes to motorcycle loans, you have two primary options: secured and unsecured.

  1. Secured bike loans – These loans are backed by collateral, usually the motorcycle itself. They tend to offer lower interest rates because the lender has security. However, in the event of non-payment, the lender may repossess the bike.
  2. Unsecured bike loans – Unsecured loans don't require collateral. While they provide more security for your bike, they may come with slightly higher interest rates.

Tips on choosing a good bike loan

  • Check your credit – Start by reviewing your credit score. A strong credit profile can help you qualify for better loan terms and interest rates.
  • Determine your budget – Calculate how much you can comfortably afford to borrow and repay each month. This will help you identify loans that fit your budget.
  • Shop around – Compare motorcycle loan offers from different lenders to find the best interest rates, terms, and fees. Different lenders have various deals, so a bit of shopping can save you money. A finance broker can streamline this process, comparing loans from various lenders to find the most suitable options for your situation.
  • Loan pre-approval – Consider getting pre-approved for a loan before you hit the dealership. This gives you a clear budget to work with and enhances your position during negotiations.

How to get the best motorcycle loan?

Follow these steps for a smooth ride:

  • Check your credit – Start by reviewing your credit score. A strong credit profile can help you qualify for better loan terms and interest rates.
  • Determine your budget – Calculate how much you can comfortably afford to borrow and repay each month.
  • Shop around – Compare motorcycle loan offers from different lenders to find the best interest rates, terms, and fees.
  • Loan pre-approval – Consider getting pre-approved for a loan before you start shopping. This gives you a clear budget and adds confidence to your negotiations.

How much can you borrow for a motorbike loan?

The loan amount you can secure for a motorbike loan varies depending on your financial situation and the lender's policies. Generally, lenders will assess your ability to repay the loan and may offer a loan amount that covers the full cost of your desired motorcycle.

How to get a bike loan with bad credit?

Don’t let a less-than-perfect credit score put the brakes on your motorcycle dreams. There are still options available:

  • Co-signer – Enlist a co-signer with good credit to strengthen your application.
  • Build credit – Work on improving your credit score before applying for a loan.
  • Specialised lenders – Some lenders specialise in bad credit loans and may offer solutions tailored to your situation.
  • Engage a broker – A broker can help you find a loan that suits your complex situation.

Explore Motor Vehicle Loans