How to Finance a Motorcycle
- The process of applying for a motorcycle loan can be very similar to applying for an auto loan.
- Your credit score has a big impact on your interest rate and your loan options.
- Shopping around with various lenders, from traditional banks to online lenders, can help score you 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 only cost between $3,000 and $6,000, the price of a new, premium bike will typically start at $46,000. Unless you’re ready to drain your savings for a motorcycle, you might need to get a loan.
So where can you get motorcycle financing, and how does it compare to auto loans? We’ll walk you through how to finance a motorcycle below.
How to get motorcycle financing
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.
Regardless of the path you choose, you’ll follow the same basic steps to get started:
Check your credit score
First, check your credit score to understand the types of loans you may qualify for. Having excellent credit means you will have the most options and are likely to receive the best rates.
If your credit score needs a little bit of work, consider waiting a few months so you can improve your credit score. Pay down outstanding debts, reduce your credit card usage and review your credit report for errors that can be fixed. Once your score improves, you’re ready to apply for financing.
But what if your credit history has some serious blemishes? While you can get a motorcycle loan with bad credit, it’ll come with a high APR, increasing your total cost of borrowing.
Get free, personalized recommendations on how to improve each of the factors that affect your credit score with LendingTree Spring. We’ll show you how your credit stacks up and what to do to boost your score.
Determine your budget
If you calculate the terms of your motorcycle loan before figuring out how much you’re able to spend, you’re putting the cart before the horse. You’re more likely to spend more than you can afford if you don’t determine a budget first.
You should budget for both your down payment and your monthly payment, in addition to add-on costs like taxes, insurance, gas, storage, maintenance and so on.
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 understand how your motorcycle purchase will fit into your budget.
Don’t forget motorcycle insurance premiums, taxes and registration fees when setting your budget!
Get preapproved for a loan
The whole motorcycle-buying process will go more smoothly if you are preapproved for a loan before you begin shopping. Then, dealers know you are a serious buyer and that you can afford a bike before they get too deep into the negotiation process.
Choose a motorcycle
Now it’s time for the fun part: Shop around for a motorcycle. Just make sure the bike you choose aligns with the budget you set for yourself. Don’t be tempted by the latest and greatest models if you can’t realistically afford them, and be wary of dealer upsells.
Apply to multiple lenders
Getting a loan from a dealership can be convenient, but it’s not often the lowest rate you can find. Although you should certainly see if the dealership is offering any APR deals, get a couple of offers directly from outside lenders.
It doesn’t hurt your credit score to apply to multiple lenders for a motorcycle loan if you file all your applications within a 14-day period. For credit scoring purposes, they will all count as a single inquiry.
To get a loan, you’ll need to supply basic information about the motorcycle to your lender, such as the bike’s make, model and year, the vehicle identification number (VIN) and the mileage.
Lenders may also want to know the estimated loan amount — that’s the price of the bike (minus any down payment), plus any gear you want to finance.
After receiving multiple loan offers, compare rates and terms to determine which lender offers the most competitive financing option.
Close your loan
Choose the best motorcycle loan offer for your needs, and finalize the paperwork with your lender. If you’re purchasing a motorcycle from a dealership, the finance manager can guide you through the process.
However, make sure you’re reading the paperwork and that you know what you’re signing. Be sure you understand the repayment schedule so you can make your first loan payment on time.
Estimate your monthly motorcycle payments
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
LendingTree is a great option for finding motorcycle financing because it offers built-in comparison shopping, complete with reviews. Since 1996, LendingTree has been connecting loan applicants with an exclusive network of partner lenders and offering advice and insights along the way. The loan process is simple and straightforward, requiring just three steps:
- Tell us what you need: Simply answer some basic questions about who you are and how much money you need and we’ll take care of the rest. The process is free, simple and secure.
- Shop your offers: You’ll receive offers from up to five trusted lenders. This makes a side-by-side comparison easy, so you can see which lender will save you the most money.
- Get your money: Depending on the lender, your loan could be funded 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
Online lenders are a great option for motorcycle financing. Because they don’t have the operational expenses of brick-and-mortar lenders, you can often receive more competitive rates and faster funding than loans from traditional institutions.
Some online lenders offer traditional motorcycle loans, while others offer personal loans that you can use for buying a motorcycle. These are unsecured loans, meaning the bike won’t serve as collateral (and you may not need a down payment) — but you’ll likely pay higher interest rates. For example, lenders like LightStream offer unsecured loans that can be used for motorcycles.
Credit unions
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, but it’s usually not too challenging to become a member. Some credit unions require an affiliation with a profession or community. Others are open to everyone, like PenFed Credit Union or Consumers Credit Union.
Start your search with the best credit unions for car loans — these tend to have good motorcycle financing programs as well.
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
Like credit unions, banks may offer traditional motorcycle loans — that is, loans secured by the bike itself. The benefit is lower interest rates on the loan, but there’s a catch: 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 major bank offers motorcycle financing.
Dealerships
Purchasing a motorcycle from a dealership? The salesperson can help you secure a motorcycle loan through the dealership’s lending partner. Getting your loan and your bike in the same transaction can simplify the purchasing process.
However, rates are often 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 have in-house financing and may offer limited-time promotional APRs or loans with no money down.
Frequently asked questions
You can finance a motorcycle with bad credit, but you’ll have fewer options available. In general, your best options are using 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 between two and seven years. A traditional secured motorcycle loan from a bank or credit union typically comes with repayment terms of three to five 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.
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