How To Finance a Motorcycle
- Applying for a motorcycle loan follows a process similar to applying for an auto loan.
- Your credit score has a big impact on the interest rate and your loan options.
- Shop around with various lenders, from traditional banks to online lenders, to help you lock in the best rates and terms for your loan.
- You can lease a motorcycle, although it’s less common than leasing a car.
Motorcycles offer freedom — just you, two wheels and the open road ahead. But that freedom can come at a high cost. Although an entry-level used motorcycle might cost around $4,500, a new premium cruiser or sport bike typically costs around $6,000, and limited-edition models can cost more than $40,000 and can run much higher.
Unless you’ve saved up enough to pay cash for a motorcycle, you’ll probably have to get a loan. We’ll walk you through how to finance a motorcycle below.
Where to find motorcycle financing
Finding a motorcycle loan may not be quite as simple as finding an auto loan, but you have lots of options for financing your next bike.
LendingTree
Best if you’re always looking for the best deal
You shop around for the lowest-price flights. Why not shop for the best rate for your motorcycle loan? LendingTree makes it easy. Apply to multiple lenders and let them compete to give you the best offer.
- Tell us what you need. Take two minutes to share a few details about yourself and how much you want to borrow. It’s free, simple and secure.
- Shop your offers. LendingTree users receive an average of 11 personal loan offers. Compare yours side by side to find the one that works best for you.
- Get your money. Users save an average of $1,659 by choosing the offer with the lowest rate. Once you pick a lender and sign your paperwork, you could see money in your account in as little as 24 hours.
A recent LendingTree study found that fatal motorcycle crashes increased for five consecutive years — up 26.2% between 2019 and 2023.
Texas, in particular, has been a dangerous state for riders, with a 2023 rate of 15 motorcycle crashes per 10,000 registered motorcycles. That was more than double the national rate of 7.1. Missouri and the District of Columbia, with rates of 13.1 and 13.0, respectively, are also much deadlier than the national average.
Online lenders
Best if you’re looking for a fast deal
Online lenders are a great option for motorcycle financing because you can often receive more competitive rates and faster funding than loans from traditional institutions.
Not all online lenders offer traditional motorcycle loans—some offer personal loans that you can use to buy a motorcycle. These are unsecured loans, meaning the bike won’t serve as collateral. While you may not need a down payment, you’ll likely pay higher interest rates. LightStream is one of the online lenders offering unsecured motorcycle loans.
Credit unions
Best if you are or are willing to become a member
If you want a traditional motorcycle loan, a local credit union may be your best option. Credit unions tend to offer lower rates than large banks, in part because they are member-owned, but you’ll need to be a member of the credit union to receive the loan.
Each credit union has its own requirements to join, usually based on an affiliation with a profession or community. Others are open to everyone, like PenFed Credit Union and Consumers Credit Union.
Some of our favorite credit unions for motorcycle loans include:
- NuVision Federal Credit Union
- Credit Human
- Digital Federal Credit Union (DCU)
- Navy Federal Credit Union
- Greater Texas Federal Credit Union
- PenFed Credit Union
Banks
Best if you want a traditional loan
Like credit unions, banks may offer traditional motorcycle loans, which are loans secured by the bike itself. You’ll likely qualify for a lower interest rate than a personal loan, but if you fall behind on payments, the bank could repossess your ride.
If you’ve got a military connection, you can usually get competitive rates for motorcycle financing through USAA Bank.
Keep in mind that not every bank that offers auto loans will also offer motorcycle financing.
Dealerships
Best if you want an all-in-one experience
If you’re purchasing a motorcycle from a dealership, the sales team can help you secure a motorcycle loan through the dealership’s lending partners. As with an auto loan, getting your loan and your bike in a single transaction can simplify the purchasing process.
However, rates may be higher when you finance through the dealership, so we still recommend shopping for a motorcycle loan on your own.
If you’re buying a brand-new bike, you might be able to get financing straight from the motorcycle manufacturer. Larger brands, such as Harley-Davidson, Ducati and Yamaha, are more likely to offer in-house financing and may offer limited-time promotional APRs or no-money-down loans.
What interest rate should I expect on a motorcycle loan?
Below are the average personal loan rates by credit score that LendingTree users receive.
Use this information to shop around and compare loan rates from other lenders and the dealer. Depending on your credit score, you may be offered lower rates on a secured motorcycle loan compared to a personal loan.
| Credit tier | Average APR |
|---|---|
| Excellent (800 and above) | 15.75% |
| Very good (740-799) | 17.89% |
| Good (670-739) | 23.27% |
| Fair (580-669) | 27.79% |
| Poor (under 580) | 30.25% |
Should you finance a motorcycle?
For many want-to-be riders, financing a motorcycle is the fastest way to hit the open road. But is it always a good idea? We’ll look at the pros and cons of whether you should finance a motorcycle.
It may be a good idea to finance a motorcycle if:
- You ride frequently.
- You can afford the maintenance costs.
- You can keep up with your other monthly payments.
- Additional debt won’t impact your credit score.
Avoid financing a motorcycle if:
- It’s a luxury purchase.
- You’re stretching your budget to afford payments.
- Costs like maintenance and insurance will take up a big part of your budget.
- It could lower your credit score, which could affect your interest rate on future financed purchases.
While not as common as financing a motorcycle, you can also lease one. Leasing may be best for those with smaller budgets, since it typically comes with a lower monthly payment than a loan. You’ll also have the added perk of being able to switch motorcycles every few years.
What it really costs to own a motorcycle
Financing a motorcycle can be similar to getting an auto loan — you’ll get a traditional, secured loan through a bank, credit union or dealership. Alternatively, you can take out a personal loan, which may come with higher rates because your motorcycle won’t serve as collateral.
As a first step, however, you’ll need to come up with an idea as to how much a motorcycle will cost you. You should budget for both your down payment and your monthly payment, in addition to add-on costs such as:
- Registration & tag fees: $80-100
- Taxes: 0%-8.25%
- Insurance: $138-$533 per month
- Fuel: $800 per year
- Storage: $35-$400 per month
- Maintenance: $500-$2,500 per year
- Gear: $500-$1,300 per year
Calculate the cost of your motorcycle loan
First, figure out your monthly budget for motorcycle ownership, including the costs listed above.
Shop for rates on LendingTree to see what APRs you may qualify for on traditional and personal loans.
Use a loan calculator to compare different down payments and loan terms to see the impact of these decisions. The larger your down payment, the smaller your monthly payments will be. Although a longer repayment term will keep your monthly payments down, you’ll pay more in interest over the life of the loan. It’s smart to select the shortest loan term you can reasonably afford to reduce your lifelong interest costs.
Use our motorcycle loan calculator to see how your motorcycle purchase fits into your budget.
Motorcycle vs. auto loan differences
While a motorcycle loan may seem similar to a traditional auto loan, there are some differences you should understand.
For both loans, the vehicle is the collateral, unless you get an unsecured loan. If you don’t make the payments on time, the vehicle could be repossessed. Your credit score and payment history will factor into the interest rate you will be offered. Once you finalize the loan with the lender, you agree to make the payment in full by the payment date.
If you’re shopping around for loans and see differences between motorcycle and auto loans, here are a few reasons why:
- Potentially higher rates. Motorcycle loans tend to have higher interest rates because there’s a greater risk the borrower won’t repay the loan, since motorcycles are considered recreational vehicles. A large down payment could lower your interest rate.
- Shorter terms. Motorcycle loans typically have shorter terms, usually 36 to 60 months. Manufacturers may offer promotional terms as low as 24 months.
- Risk perception. Motorcycles depreciate quickly and may be damaged in an accident. Lenders see motorcycle financing as high risk.
- Insurance impact. Depending on where you live, you may be required to have full insurance coverage, including comprehensive and collision. Check your state’s requirements for the required coverage.
Frequently asked questions
You can finance a motorcycle with bad credit, but you’ll have fewer options available. In general, your best options are bad credit personal loans or secured motorcycle loans to cover the purchase.
If you have poor credit, expect to pay higher-than-average interest rates and more expensive origination fees for your motorcycle loan.
To get an affordable rate on a motorcycle loan, you’ll typically need a credit score of 670 or higher. Borrowers with excellent credit scores (800 or above) are most likely to receive the lowest rates.
How long you can finance a motorcycle depends on the type of loan you get. Most personal loan terms range from 2 to 7 years. A traditional secured motorcycle loan from a bank or credit union typically has repayment terms of 3 to 5 years.
Yes, you can lease a motorcycle, though it’s less common than leasing a car. You’ll spend less money on a lease than you would buying a motorcycle outright, but you’ll only get to ride it during the life of the lease.
Also, you won’t actually own the bike, and you may not be able to customize it to your liking. Depending on your lease, you may not have mileage restrictions when leasing a motorcycle.
Compare Motorcycle Loan Offers
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