But the cost of riding gear, licence fees and motorcycle insurance can quickly add up. The last thing you want is an uncompetitive loan adding to your costs.
This guide includes the financing options you have available to help you get your new or used motorcycle.
You can also use our bike loan calculator to get an idea of your monthly repayments.
What is a motorcycle loan and how does it work?
Like a car loan, motorcycle loans are finance options where you borrow money from a lender to buy a motorcycle. Over the set loan term you will repay the loan, plus interest.
Specific motorcycle loans will allow you to use motorcycles as security, but it's not extremely common. An unsecured personal loan might be more helpful.
Unsecured personal loan terms vary between one and seven years and you may be able to use some of the funds to purchase additional items with your bike, such as insurance.
How much do motorcycles cost?
Costs for a motorcycle vary, but the purchase price is generally cheaper than a car. Even new motorbikes will usually set you back less than $10,000. On top of the purchase price though you still need to take into account insurance, riding gear, licence fees and other upfront costs.
Some lenders may let you take out a loan that is more than the price of your motorbike to cover these costs, but other lenders may only let you borrow the cost of your vehicle. Check these terms before you apply.
Finder survey: How much do Australians borrow to buy a motorcycle?
Response
Male
Female
40k - 50k
0.94%
0.17%
10k - 20k
0.56%
0.69%
20k - 30k
0.56%
0.69%
30k - 40k
0.56%
0.17%
< 10k
0.56%
0.52%
70k - 80k
0.17%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023
We currently don't have that product, but here are others to consider:
How we picked these
How to compare motorcycle loans
When comparing your finance options, ask yourself the following questions to see if the loan is right for you:
How much do you need to borrow? Check the minimum and maximum amount available to borrow when comparing car loan options. Make sure you can afford to repay the amount you want.
What will your loan term be? For a fixed rate loan, you can usually borrow money for between 1 and 5 years, while variable rate loans usually have terms of between 1 and 7 years.
Do you need a secured or unsecured loan? A secured loan will use your motorcycle as a guarantee in case you default on your repayments. An unsecured loan does not require any guarantee though. If you need to borrow more than the cost of the vehicle or want flexibility with your repayments, you may want to opt for the unsecured loan option.
What interest rate will you be getting? The interest rate you'll pay on your loan will impact the overall cost of the loan. This rate will be fixed or variable. A variable rate can fluctuate over the course of the loan while a fixed rate is set for the life of the loan.
What fees will you be charged? Lenders may charge a range of upfront and ongoing fees in order to set up the loan and cover the administrative costs of managing your loan account. Make sure to take these into account so you can get a sense of the actual cost of the loan.
Can I make extra repayments? One way to bring down the interest paid on your loan is to make extra repayments when you can afford it. But you need to make sure your loan offers this before you apply. You should also check if the loan will charge you if you repay the loan early.
You can use our loan calculator to work out how much you can afford to repay. Enter in a loan amount, preferred loan term and repayment frequency. You can pick a vehicle loan from the table to use an example interest rate and monthly fee.
Your loan details
Loan amount
$
Term
Repayment type
Interest rate
%
Interest only period
Payment frequency
Extra monthly repayments
$
Overview of your loan
Once the interest only period ends, your estimated repayments will be
Calculator Assumptions: The above calculations are worked out assuming you’re paying off a principal and interest loan where the interest rate remains the same over the life of the loan. The repayment amounts do not take into account any additional fees or charges that may be charged to your loan (e.g. application fees).
Disclaimer: Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as indication only. They are neither a quote nor a pre-qualification for a loan.
Example: Jim needs a motorcyle loan
Jim works full time for a regional office and enjoys a short 15-minute bus trip to work every day. However, when he is promoted and starts working in the city, he doesn't like the one-hour commute on his bus. He owns a car but doesn't want to have to pay the hefty CBD parking fees. Jim decides he is going to get a second-hand motorbike for his commute.
He works out he can comfortably borrow up to $10,000 for his new purchase. He compares his finance options, including the rates, fees and terms. He wants to be able to make extra repayments and so opts for a variable rate loan. He receives online conditional approval for the $10,000 he needs and then starts his search online for his new wheels.
Beyond Bank Low Rate Car Loan. The motorbike cannot be more than two years old.
Latitude personal loan. The motorbike cannot be more than ten years old.
ANZ secured car loan. The motorbike needs to be less than seven years old.
IMB Secured Personal Loan. The motorbike needs to be less than six years old.
Things to avoid with a motorcycle loan
Taking out a loan you can’t afford. Think about the actual cost of the loan, which includes all applicable fees and rates, before you apply. You then need to work out the cost of your repayments and the length of time you'll need to budget for them.
Applying for loans that are restrictive. Some loans may place restrictions on the loan that can stop you from saving money or paying back your loan sooner. Check if you are able to make additional repayments or if you will be charged for paying back your loan sooner.
Our expert says: Consider an unsecured personal loan
"If you’re considering a vehicle loan or a secured personal loan to buy a motorbike, you need to do your research to check both whether motorbikes are accepted and whether there are age restrictions.
Although unsecured personal loans often have higher interest rates, you might be better off applying for one of those. This way you don’t have to worry about restrictions on security. You can also use some of the loan for other costs like insurance or accessories.
Compare both secured and unsecured personal loans to figure out the right loan for you. And don’t forget to calculate your potential repayments to make sure you can afford what you want to borrow."
Compare motorcycle loan options or unsecured personal loan options using the comparison table on this page.
Once you have found the right loan for you, click "Go to Site" to be directed to the lender’s website to fill out an application form or to find out more.
The eligibility requirements for personal loans will differ between lenders. Generally you'll need to be over the age of 18, a permanent Australian resident or citizen and have a good credit rating.
If you're taking out a secured loan there will also be restrictions regarding whether the motorcycle you’re looking to purchase is eligible.
Documents to have when you apply
100 Points of ID, such as a passport or driver’s licence
Employment details, including your employer’s name and contact details plus copies of recent payslips
Financial details, including information about your assets, debts, income and liabilities
If you are self-employed, you will need to have supplementary financial documents
Registration details of the bike you intend to buy if you don't have pre-approval.
If you need a lower rate on your loan, you may want to consider securing the loan by using the bike as collateral. This means that if you default on your repayments, then the lender can repossess your bike to cover the costs.
This is a question raised by many riders when considering buying their next bike. It will come down to your financial situation and your ability to service the loan. See what else is involved in leasing and buying here.
While the offer of a 0% interest finance option may sound temping, it's important to always compare your options. You'll also have to consider balloon payments, monthly costs and other ongoing fees. Find out more information about 0% financing.
Why compare motorcycle finance with Finder?
It's 100% free
You won't be charged for clicking through to one of our car finance partners. We get paid out of their pocket – not yours.
We're here to help
We've helped tens of thousands of Australians find car, bike and boat loans by keeping things simple and free of complicated jargon.
It's quick and easy to use
Our side-by-side motorbike loan comparison makes it easy to find a loan that is a good fit.
Matt Corke is Finder’s head of publishing ventures. Prior to this he was head of publishing for Australia, New Zealand and emerging markets. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates. See full bio
Hi, do I need to hold a full licence (R) to finance a Harley Davidson?
Looking to secure the bike before I do my test
Finder
ElizabethMarch 7, 2016Finder
Hi Nick,
All models, up to 250mL, including mopeds, are eligible for use on an RE licence and are included in the LAM Scheme. A Harley Davidson XG500 Street model (in the 251mL–660mL category) is also eligible for use on an RE licence and are included in the LAM scheme.
I hope this has helped.
Thanks,
Elizabeth
kierrenJanuary 27, 2016
Can you supply me with a list of lenders that will supply a secured bike loan on a bike that is purchased privately. I am trying to avoid banks that only supply personal loans for this type of purchase as the rates are much higher.
Finder
ElizabethJanuary 27, 2016Finder
Hi Kierren,
I’m unable to recommend any specific lenders to you, but all of the lenders on this page can assist with motorcycle financing. You can click through to the review pages by selecting the name of the lender to find out if pre-approval is available. Getting in touch with the lenders directly may be your best option to find out if financing a private motorbike purchase is available.
Finding finance for your motorbike needn't be a hassle. Licensed Aussie loan broker Driva specialises in a range of vehicle loans and could help you find the perfect motorbike loan for the bike of your dreams.
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Jim works full time for a regional office and enjoys a short 15-minute bus trip to work every day. However, when he is promoted and starts working in the city, he doesn't like the one-hour commute on his bus. He owns a car but doesn't want to have to pay the hefty CBD parking fees. Jim decides he is going to get a second-hand motorbike for his commute.
Hi, do I need to hold a full licence (R) to finance a Harley Davidson?
Looking to secure the bike before I do my test
Hi Nick,
All models, up to 250mL, including mopeds, are eligible for use on an RE licence and are included in the LAM Scheme. A Harley Davidson XG500 Street model (in the 251mL–660mL category) is also eligible for use on an RE licence and are included in the LAM scheme.
I hope this has helped.
Thanks,
Elizabeth
Can you supply me with a list of lenders that will supply a secured bike loan on a bike that is purchased privately. I am trying to avoid banks that only supply personal loans for this type of purchase as the rates are much higher.
Hi Kierren,
I’m unable to recommend any specific lenders to you, but all of the lenders on this page can assist with motorcycle financing. You can click through to the review pages by selecting the name of the lender to find out if pre-approval is available. Getting in touch with the lenders directly may be your best option to find out if financing a private motorbike purchase is available.
Thanks,
Elizabeth