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4 Ways to Get a Loan for a Motorcycle

While you can get motorcycle loans, personal loans may be a better option if you’re buying a bike.

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By Kat Tretina

Written by

Kat Tretina

Writer

Kat Tretina has been a personal finance writer for more than eight years, specializing in mortgages and student loans. Her work has been featured by Buy Side from WSJ, U.S. News & World Report, Yahoo Finance, and MSN.

Edited by Jared Hughes

Written by

Jared Hughes

Editor

Jared Hughes has over eight years of experience in personal finance. He has provided insight to Fox Business, New York Post, and NewsBreak.

Updated August 16, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

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Motorcycles are often touted as a less expensive alternative to cars, but they can still be quite pricey — a used bike might be as little as a few thousand dollars, but new or used can easily be tens of thousands of dollars, as much or more than a car. On top of that, you’ll need money to purchase essentials like a helmet, boots, and other protective gear.

If you don’t have the cash saved, you’ll likely need to find a motorcycle loan or motorcycle financing through a dealership before you can start shopping for a bike.

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Where to find a motorcycle loan

There are several types of lenders that offer loans for motorcycles. Here are a few of your options.

1. Banks and credit unions

Some banks and credit unions offer loans specifically for motorcycles that are secured by the bike you’re purchasing. A down payment may also be required to qualify.

Since the bike serves as collateral, rates tend to be lower relative to unsecured loans (like personal loans, which we discuss below). It can also make it easier to qualify for a motorcycle loan if you have bad credit.  However, if you can’t make your payments, you risk losing your bike. 

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Keep in mind

Some major institutions — such as Bank of America and Capital One — don’t offer motorcycle financing.

Here are a few banks and credit unions that offer motorcycle loans. Note that none of these are Credible partners.

2. Dealership financing

If you’re purchasing a motorcycle from a dealership, you might be able to get financing directly through the dealer. With dealership financing, you can apply for a loan for the exact amount of the bike you select and get an approval decision on the spot.

Keep in mind that dealership loans might require a down payment. You could also end up with a higher APR than if you shopped for a motorcycle loan on your own with a bank or credit union. Arrive at the dealership with your own financing lined up, so you can use it as a negotiating tactic if need be.

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Ultimately, whether dealership financing is a good idea will depend on whether you can get better loan terms through the dealer or with another lender.

3. Manufacturer financing

Some motorcycle manufacturers — such as BMW, Harley-Davidson, and Suzuki — offer their own financing. These loans are secured by the bike you purchase. Keep in mind that they might also require a down payment.

Manufacturer financing is available for both new and used bikes and might offer lower promotional rates than you’d get from an online lender, bank, or credit union.

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For example

Manufacturer financing APRs sometimes go as low as 1.99% — possibly even lower with special sales or events. Keep in mind that you’ll typically next excellent credit to qualify for the lowest rates.

Like dealership financing, manufacturer financing could be a good idea if you can get better terms through a manufacturer. Make sure to shop around and compare lenders before making your decision.

4. Personal loan lenders

A personal loan may be best if the bike you want isn't eligible for financing by any of the methods above, or if you want cash-in-hand to buy from (and negotiate with) a private seller. Unlike secured loans, most personal loans are unsecured, so they don't require the bike as collateral. This means you can use a personal loan for almost anything. But since the loan isn't secured, rates tend to be higher, especially if you don't have good credit. 

Lenders typically offer loan amounts ranging from $1,000 to $50,000 (some lenders offer more), with repayment terms from one to seven years. Personal loans also tend to have lower APRs than credit cards. The average annual percentage rate (APR) for a 24-month personal loan was 11.92%, while the average credit card APR was 21.51%, according to The Federal Reserve. That's why we don't tend to recommend using a credit card to buy a motorcycle, even though it's an option if your limit is high enough.

An online lender is often a faster option for approval decisions and loan funding, which could get you on the road more quickly.

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How to get a personal loan for a motorcycle

If you take out a motorcycle loan through a specialized financier, the loan will typically use the motorcycle as collateral — similar to how an auto loan is secured by your vehicle. However, if you don't want to use your bike as collateral or only need to borrow a small amount, then you might consider an unsecured personal loan instead.

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Motorcycles can range widely in price depending on the kind of bike you choose as well whether it's used or not — so make sure to consider your budget to see what you can reasonably afford without overextending yourself financially.

Follow these five steps if you're ready to get a motorcycle loan:

  1. Check your credit: When you apply for a loan, the lender will review your credit to determine whether to lend to you based on your credit profile — so it's a good idea to check your credit beforehand to see where you stand. You can use Credible's credit monitoring tool to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureau to potentially boost your credit score.
  2. Decide which type of lender to use: Motorcycle loans are available from a variety of lenders, including online lenders, banks, and credit unions. Many dealerships also offer their own financing. Keep in mind that depending on which lender and loan type you choose, you might have to use your motorcycle as collateral.
  3. Compare lenders and prequalify: Shop around and compare your options from multiple lenders to find the right loan. Consider not only interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements. You can prequalify to see your rates and terms before applying. Prequalification won't impact your credit, but it's not an offer. Your final rate may be different.
  4. Fill out the application: Once you've picked a loan option, you'll need to complete a full application and submit required documentation, such as tax returns or pay stubs. The lender will perform a hard credit pull, which could bring your score down temporarily.
  5. Get your funds: If you're approved, the lender will have you sign for the loan so the funds can be disbursed. The time to fund for an unsecured personal loan is usually about one week — though some lenders will fund loans as soon as the same or next business day after approval. Other types of financing can also vary in approval and funding times, so be sure to check with the lender to know when you can expect the loan to close.

Learn More: 

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A note on APR

The annual percentage rate (APR) includes the interest rate and upfront fees the lender charges you. It's a better tool to use when comparing loans, instead of just relying on the interest rate alone.

Motorcycle loan frequently asked questions

Here are some answers to commonly asked questions about motorcycle loans:

What’s the difference between a motorcycle loan and a personal loan?

Motorcycle-specific loans are similar to car loans. They’re secured by the vehicle you purchase — which means if you fall behind on your payments, the lender could repossess the motorcycle and sell it to recoup the outstanding balance. But they also tend to have much lower rates.

Personal loans, on the other hand, are generally unsecured, meaning they don’t require collateral. While most personal loans could be used to purchase a motorcycle, they tend to have higher interest rates compared to secured motorcycle loans.

Can I get a loan for a used motorcycle?

Not all dealers and manufacturers offer loans for used motorcycles, especially ones with high mileage or classic bikes. If this is the case, you might be better off applying for a personal loan to cover the cost. You can typically use a personal loan for any personal expense (though some lenders might have restrictions), including buying a motorcycle. 

Can you get a motorcycle loan with bad credit?

If you have poor credit, it might be more difficult to qualify for a motorcycle loan. However, there are several lenders — such as Avant, Best Egg, and LendingPoint — that offer personal loans for bad credit.

Some lenders — like Achieve and LendingClub — also allow you to apply for a personal loan with a cosigner, which could improve your chances of getting approved for a loan.

Even if you don’t need a cosigner to qualify, having one might get you a lower interest rate than you’d get on your own.

Can you get a personal loan for motorcycle repairs?

Personal loans can be used for almost any personal expenses, including motorcycle repairs. If you plan to buy a motorcycle or need to make repairs to a bike you already own, a personal loan could help you cover the cost.

How can you get a better rate on a motorcycle loan?

To qualify for the lowest rates on motorcycle loans, you’ll typically need excellent credit. You can potentially build your credit by paying down debt, making all your monthly payments on time, and limiting new credit inquiries. One way to do this could be with a debt consolidation loan, which can lower your monthly payments and make a motorcycle more affordable as well.

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Meet the expert:
Kat Tretina

Kat Tretina has been a personal finance writer for more than eight years, specializing in mortgages and student loans. Her work has been featured by Buy Side from WSJ, U.S. News & World Report, Yahoo Finance, and MSN.