Compare motorcycle loans

What type of motorcycle loans are available?

Motorcycle loans provided by lenders are often unsecured personal loans - meaning you don't have to provide any security or collateral. However, some lenders may offer secured personal loans for the purpose of buying a motorcycle. In these instances you’ll put up your new motorbike as security for the loan.

Loan terms typically range from one to seven years, depending on the lender’s borrowing conditions. You can apply for a loan with either a fixed or variable rate, depending on your preference. Funds can be used to purchase your motorcycle and sometimes other related costs, such as insurance.

While repayment schedules can vary between lenders, you can often choose to either make weekly, fortnightly or monthly repayments. These are typically set up to align with when you’re paid.

Is a motorcycle loan just a personal loan for motorcycles?

Generally speaking, yes. There are banks and non-traditional lenders that might offer you secured personal loans for the purpose of buying a motorcycle but oftentimes the loans that you’ll be offered are unsecured personal loans.

If you choose a secured loan, you’ll be using your motorcycle as collateral. If you’re unable to make repayments and default on your loan, the lender may repossess your vehicle to cover the unpaid costs.

It’s important to note that when you apply for any loan, the lender will want as much information as possible pertaining to how you intend to spend the money you’re borrowing. Be prepared to provide all required information regarding your purchase, as well as pertinent personal financial details. 

How much can you borrow with a motorcycle loan?

Motorcycles range in price, therefore loan sizes vary. You can pay anywhere from around $3,000 for a brand new scooter, and up to $10,000 for a quality learner motorcycle.

There are, of course, larger and more expensive motorcycles available for purchase. For personal loans, lenders in Australia generally cap the maximum borrowing limit at $50,000 - $60,000. However, the purpose of the personal loan, and whether it's secured or unsecured, may determine whether you can request more funds.

What other costs should you consider?

Aside from the price tag of the motorcycle and ensuring your principal and interest repayments on the loan are met, there are various other costs you may want to consider when deciding whether or not to purchase a motorbike. 

These can include, but are not limited to:

• Stamp duty
• Compulsory third party (CTP) and comprehensive insurance 
• Vehicle registration costs 
• Helmet/s, leathers, pads and guards for safety
• Ongoing service, maintenance, fuel and toll costs

How do I take out a motorcycle loan?

If you’re interested in discovering how much you may be able to borrow, consider using our RateCity Personal Loan Borrowing Power Calculator. Simply enter some details about the loan, such as the amount you want to repay, the repayment frequency and your credit score, and the calculator may help you gauge your estimated borrowing power.

Once you’re aware of how much you can afford to borrow and the amount you're happy to spend, you can compare motorcycle loan options using RateCity’s comparison tables. Once you’ve discovered a loan that best suits your needs, click the "Go to site" button and you’ll be redirected to your chosen lender’s website.

From there you can fill out an application form as long as you meet the eligibility criteria - generally, you’ll need to be an Australian citizen or permanent resident over the age of 18.

Be prepared to have the following documents available for verification when taking out any personal loan:

• 100 points of identification, such as your driver’s licence or passport
• Current employment details - employer’s name, contact details, recent payslips
• Personal financial details - Full list of assets, income, debts and liabilities
• Details of the item/s you intend to purchase if you don't have pre-approval

Be realistic with your budget and do your research when considering personal loans to finance purchases. Consulting a financial advisor may be helpful if you have any questions or queries.