Motorcycle Loans: How to Finance Your New Bike in 2025

Nothing feels quite as liberating as hitting the open road on two wheels. But while motorcycles may feel freeing, they certainly aren’t free. Although generally cheaper than cars, new bikes for advanced riders can still cost tens of thousands of dollars — and that’s before buying the equipment and paying for insurance and maintenance.

That makes motorcycle loans crucial for most riders. Many borrowers choose to get a personal loan for their motorcycle, but you can also explore motorcycle loans from a local bank or credit union, the dealership, or even the manufacturer. Below, we’ll look at how much motorcycles cost, all the options to finance them, and tips for choosing the right loan for your needs.

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How much does a motorcycle cost?

The average cost of a new or used motorcycle is between $5,000 and $10,000, if you’re looking for a beginner’s bike. Expert riders can expect to spend up to $35,000 or more for more advanced motorcycles or motorcycles from a premium brand.

While motorcycles can save you a lot of money on gas, there are additional upfront and ongoing costs associated with bikes to consider, including:

• Riding gear, such as helmets, gloves, boots, and riding pants, which can cost more than $1,000 altogether
• Motorcycle insurance, which might range from $10 to around $30 per month, according to Progressive
• Routine maintenance, which could run up to or higher than $1,500 a year, depending on the make and condition of your bike

What is motorcycle financing, and how does it work?

Motorcycle financing is a way to purchase a motorcycle on credit, much as you might use an auto loan to buy a new car. You can get traditional financing through the motorcycle dealership or even through the manufacturer, but you can also apply for a personal loan with an online lender, bank, or credit union to finance your ride.

Financing through the dealership or manufacturer might require a down payment, and a personal loan might carry an origination fee. The former typically means the motorcycle serves as collateral (a secured loan), while personal loans don’t require you to use the bike as collateral. Otherwise, these two types of loans work pretty similarly:

• You apply for financing and, if approved, use the funds to pay for the motorcycle.
• You make monthly payments (installments) over a set number of years until the loan is paid off.
• Each payment consists of a principal balance (the amount you borrow) plus interest. Note that if the lender charges fees upfront (like an origination fee) and wraps them into the loan, you'd be paying that off too.

Is taking out a motorcycle loan a good idea?

Taking out a motorcycle loan could be a good idea, in the right circumstances. If you intend to use the motorcycle as your primary means of transportation, a motorcycle loan makes a lot of sense. It is likely going to be less than a car payment (the average cost of a new car is nearly $50,000), and motorcycles are also cheaper to fuel and typically cheaper to insure.

However, if the motorcycle is a luxury purchase — a hobby, and not your primary means of transportation — it’s better to save up and pay cash. We recommend only financing a motorcycle as a luxury purchase if you:

• Have an established emergency fund
• Have paid down other major debts (especially high-interest credit cards)
• Have disposable income each month

Ways to finance your motorcycle

You can get a personal loan to finance your motorcycle from an online lender, but banks and credit unions are also viable options. Alternatively, the dealership may offer financing, or you can look for financing through the motorcycle manufacturer itself.

Online personal loan lenders

An online lender is a great place to look for a personal loan, and as long as you have fair or better credit and steady income, you should be able to qualify for an unsecured loan to cover the cost. (Personal loan requirements vary by lender.)

Most online lenders offer same- or next-day funding once you’re approved, and because these lenders have low overhead, they often have very competitive interest rates. The best personal loans have rates as low as 6.49%, but rates can go as high as 35.99%. Right now, average personal loan rates are hovering around 14% to 20%, depending on your loan term and credit score.

You can usually get a personal loan for anywhere from $2,000 to $50,000, which should be enough to cover the cost of a motorcycle, even a luxury model. It’s possible to find loans for as little as $1,000 if you only need a little help to cover the cost (here are the best small loans to choose from).

Online lenders generally offer personal loan repayment terms between two and seven years, but a good rule of thumb is to treat a motorcycle personal loan like a car loan — keep it somewhere between three and seven years. The shorter the repayment period, the less you’ll pay in interest. 

Here are some of the best online lenders offering motorcycle loans:

Banks and credit unions

Banks and credit unions also offer unsecured personal loans, but you might be able to find specialized motorcycle loans that work more like a traditional vehicle loan — where the motorcycle itself serves as collateral on the loan. With the bike serving as collateral, you could qualify for a lower interest rate, and it might be easier to qualify even with a low credit score.

Here are some banks and credit unions currently offering motorcycle loans:

• Navy Federal Credit Union
• Commerce Bank
• First Citizens Bank
• USAA

You can also check with local community banks and credit unions to see if they offer personal loans or specific motorcycle loans. Some banks may not label these loans as motorcycle loans; instead, they may be lumped in with auto loans or even RV loans. It never hurts to ask a loan representative at your current bank.

Dealership financing

When you purchase a motorcycle from a dealer, you might be able to obtain financing directly from the dealership (or through its network of lenders). Unlike with a personal loan, you may need to make a down payment, and the motorcycle itself would serve as collateral for the loan.

Manufacturer financing

Finally, you may be able to obtain financing directly from the motorcycle manufacturer, such as Suzuki, BMW, Ducati, or Harley-Davidson. Borrowers with excellent credit may even qualify for super-low rates during promotional periods, such as 0% APR financing for up to 36 months.

And it’s not just for new bikes; manufacturers may also offer used motorcycle financing. Harley-Davidson, for instance, offers financing for used bikes from dealers and private sellers. The latter is called the Rider-to-Rider Financing Program; this allows you to get financing even when buying a used bike from a third party, but you’ll have to work with a qualifying Harley-Davidson dealer.

Tips on comparing motorcycle loans

Follow these tips when deciding which motorcycle loan is right for you:

Start with eligibility requirements

Before applying for any kind of financing, verify that you can actually qualify based on your credit score, income, and debt-to-income ratio (DTI). Personal loan requirements vary by lender, but the minimum credit score for a personal loan is usually in the 600s (though some lenders may approve you with a lower score).

Compare annual percentage rates (APRs)

Get prequalified with multiple lenders to see which offers the lowest annual percentage rate (APR) and best terms. The APR is a reflection of the interest rate and upfront fees, such as an origination fee on a personal loan.

In most cases, prioritize the loan with the lowest APR. However, if the loan with the lowest APR doesn’t offer enough money, or the term length is too short to keep payments affordable, you might want to choose a loan with a higher APR.

Think carefully about repayment terms

Motorcycle loans, whether through the dealer, a manufacturer, or a personal loan lender, typically last two to seven years. 

• If you need to keep payments low, choose a loan that lasts for five or more years. 
• If you want to minimize how much you pay in interest over the life of the loan, choose a shorter loan term — just make sure you can afford the resulting monthly payment. 

Use our personal loan calculator to see how much changing the length of the loan can impact your monthly cost.

Look at the loan amounts

Only some lenders allow small personal loans ($1,000 or $2,000); others have a $5,000 minimum. If you’re buying a used motorcycle or already have some cash saved up, prioritize lenders that offer small amounts, such as Universal Credit ($1,000 minimum) and Upgrade ($1,000 minimum).

Dealership and manufacturer financing, as well as motorcycle loans from banks and credit unions, should be for the exact amount you need to finance — and not a cent more. That could make them more attractive if you’re trying to borrow the bare minimum.

Weight the cost of down payments and origination fees

Some manufacturers and dealerships advertise zero-money-down financing, but that’s often reserved for borrowers with excellent credit. Otherwise, be prepared to make a down payment on your motorcycle, much like an auto loan.

If you don’t have enough cash for a down payment (or have that cash earmarked for something else), a personal loan could be the better option. Personal loans don’t require down payments, though you might be charged an origination fee, which gets folded into the loan.

Try to have financing before going to a dealer

Get prequalified with online lenders or visit a local bank or credit union to explore financing options before heading to a dealership. You can also explore financing through the manufacturer online. Save dealership financing as a last resort.

Why? Some motorcycle dealers work with a network of lenders. Dealer markups and dealer reserves — in which the dealer earns a percentage of the loan amount or a fee from a lender and passes the cost along to you — can make dealer financing more expensive than borrowing from a lender directly. Other dealers may advertise in-house financing (also called “buy here, pay here” or “no credit check”), but that option can also come with high interest rates and fees.

Although dealer financing and “buy here, pay here” can be convenient and/or easier to obtain with bad credit, the tradeoff could be higher borrowing costs.

How to get a personal loan for a motorcycle

Does a personal loan sound like the best path forward for financing your motorcycle? Here’s how to apply for a personal loan for your new or used bike:

1. Get prequalified: Use an online loan marketplace like Credible to get prequalified with multiple lenders. Prequalification gives you a good idea of which lenders will approve you and at what rates and terms.
2. Compare lenders: Once you’ve prequalified, narrow your options by comparing APRs, loan amounts, repayment terms, and customer service ratings on sites like Trustpilot and the Better Business Bureau.
3. Apply online: If you’re using an online lender, you can apply from the comfort of your home. You’ll just need to provide proof of income and identity, and usually submit to a hard credit inquiry. Alternatively, you can apply with a local bank or credit union in person.
4. Review the loan agreement: Once approved, review the loan offer, including the rate and all terms and conditions. If everything looks good, sign the loan and any other documentation to initiate the transfer of funds to your bank account. Some personal loans offer same- or next-day funding, but it could take a few business days depending on the lender.
5. Start repaying the loan: Use the money to purchase your motorcycle. But before you ride off into the sunset, don’t forget to set up automatic payments online. Set calendar reminders and check your account each month to make sure you have enough money to cover the payment before it processes.

Learn More: How To Apply for a Personal Loan

Can I get a motorcycle loan with bad credit?

It is possible to get a motorcycle loan with bad credit, but the interest rate will likely be high. The amount you can borrow may also be limited.

Using the motorcycle as collateral, either for a secured personal loan or through dealer or manufacturer financing, can improve your approval odds, even with bad credit. Alternatively, you can apply with a cosigner or joint applicant with good credit to increase your chances.

Disclosure: Some lending partners that participate in Credible’s comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.