It's true - motorcycles are cheaper than cars.
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.
Our Motorbike Loan Finder™ guide includes what 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.
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Our side-by-side motorbike loan comparison makes it easy to find a loan that is a good fit.
What is a motorcycle loan and how does it work?
Motorcycle loans are basically loans where the lender will allow you to use a motorbike as security; however, not every car loan lender will approve a motorbike as security for a loan.
You may be able to get an unsecured loan in this case. 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.
While the actual purchase price is generally cheaper than a car – even new motorbikes will usually set you back less than $10,000 – you still need to take into account insurance, riding gear, licence fees and other upfront costs you will need to pay.
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.
Bike loan calculator
Overview of your loan
Once the interest only period ends, your estimated repayments will be
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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.
How to choose your motorbike
When you're shopping around for your two wheels, it is important to keep these factors in mind.
Decide on a type of bike.
There are different bikes that you can consider buying. You could consider a Harley Davidson if you're after a cruiser, a sports bike if you're after speed or a touring motorbike for long-distance travel. You could also look at a dual-sport bike, a standard motorbike or a postie motorbike. You could even check out a scooter if you're after a cheaper option.
Is the engine capacity the right size?
Make sure you research the law around licence type and engine capacity. Depending on your state laws, you may have a bike you can't ride. For instance, in NSW, you'll need to check that the bike you want to buy is listed in the Approved Motorcycles for Novice Riders guide.
How does it ride?
As with buying a car, you should always consider taking the bike for a test ride. How does it handle? What is the acceleration like? These are the kinds of questions you should be thinking about.
Loans for Harley Davidsons
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.
What you should think about when comparing motorcycle finance
When comparing your finance options, remember to take the following features into consideration to see if the loan is right for you:
- What is the loan amount you need?
Check the minimum and maximum amount on offer when comparing your car loan options, and ensure you're able to borrow the amount you need.
- What will your loan term be?
For a fixed-rate loan, you can usually borrow money for between one and five years, while variable-rate loans usually have terms of between one and seven years.
- Do you need secured or unsecured?
A secured loan will use your motorcycle as a guarantee in case you default on your repayments, while an unsecured loan does not require any guarantee. 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 will be paying on your loan will contribute significantly to the 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 for 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. If you feel like this may be of benefit to you, ensure your loan offers this before you apply.
Compare your bike loan options above
Have your eye on a used motorbike?
If you're after a second-hand motorbike, you may still be eligible for a secured car loan. Here are the criteria you should consider for each brand:
- 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.
- Cashfirst secured car loan. The motorbike needs to be less than seven 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 you probably want to avoid
- 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 determine the cost of your repayments and the length of time you will 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.
How you can apply for a new bike loan
Compare your motorcycle 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.
The eligibility requirements for personal loans will differ between lenders, but generally you will need to be over the age of 18, a permanent Australian resident or citizen and have a good credit rating. If you are taking out a secured loan there will also be restrictions regarding whether the motorcycle you’re looking to purchase is eligible.
When you apply for a loan, you should have the following documents ready:
- 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.
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Frequently asked questions about motorcyle finance
Can I get a secured motorbike loan?
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.
Should I lease or buy my next motorbike?
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.
I've been offered 0% finance, is this good?
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.