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Find a personal loan for buying a motorbike to help with the cost of a new set of wheels. Compare Australia's top personal loan rates and find your way to a new motorcycle pronto.

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Mark Bristow

Updated on

22 Dec, 2024

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Looking for a way to enjoy the open road on two wheels? Start comparing motorcycle personal loans to find one that suits your finances, or consider looking at a motorcycle car loan instead. Work out which one is ideal for you in just a few steps, and start making that motorcycle dream a reality.

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.

Motorcycle financing options

Secured personal loans

These are loans that have a security attached to them. In the case of purchasing a motorcycle, you may choose to use your bike as security on the loan. This means that if you default on your repayments, a lender can claim your bike in order to cover the cost of the loan. Only once you’ve paid off the loan do you get full ownership of the bike.

Unsecured personal loans

The hint is in the name, and unsecured loans are just that: not secured against an asset. As a result of this, they tend to have a higher interest rate than secured personal loans, because they are considered by the lender as a higher risk product. An unsecured loan may be useful if you are considering a second-hand bike, as lenders may be less inclined to consider second-hand bikes for security.

Credit card

You may find that you prefer the option of purchasing your bike on a credit card. Using a credit card can mean that you’re able to get your bike and get going faster than perhaps with other financing options. You may be able to find a low rate credit card that suits these purposes. Bear in mind that there can be some high balance transfer fees attached to low rate credit cards, should you want to find a card further down the road with a lower interest rate. Credit cards can be notorious debt traps.

Fixed rate bike loan

Bike loans with fixed rates based on the period of the loan are available from some lenders. The rate will vary by lender and depending on your circumstances.

No deposit bike loan

You can also get bike loans that are deposit free, so you don’t even have to have any cash saved up in order to purchase your new ride. Beware though, a no deposit bike loan may mean higher monthly repayments and/or a longer repayment period, which means you could end up paying more interest over the life of the loan.

Motorcycle dealership finance

Many motorcycle dealerships will have their own financing structures in place for their automobiles. Some of these will even offer a zero per cent finance deal. However, be wary of likely paying a full retail non-negotiable price for your bike in this instance. Know that financiers are always making their money somewhere, so if they’re offering you a zero per cent interest finance option, there’s probably a catch.

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, while a quality learner motorcycle might cost you around $10,000.

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.

Can I get a loan for a dirt bike?

Lenders provide personal loans for almost every endeavour, and buying a dirt bike is no exception. Buying a dirt bike is the same as buying a regular road motorbike.

There are many ways of financing a new dirt bike, and some may work better for you than others. For this reason, it is important that you consider your options carefully, shop around, and pick the plan that works best for you. Because no one wants to end up paying more than they have to.

Loans to buy a dirt bike are available from a variety of different lenders, offering a range of interest rates. Your approval for finance will rely on your credit history and income, and the rate you will be charged will also vary depending on these factors.

Ways to pay less when buying a motorcycle

Shop around

It is important to compare loans and do your research in order to find the best deal for your circumstances. Compare interest rates, terms, and conditions from different lenders to find the best financing deal. A lower interest rate can save you money over the life of the loan.

Consider trade-in options

Do you have an older model and want to replace it with something new? You may be able to save on the cost of your bike by trading in your previous bike. You may also be offered a more flexible loan with a trade-in, with options of balloon payments and other handy features.

Check your credit score

Having a good or an excellent credit rating will mean that the lower rates are often available to you and will save you money over the life of the loan. If your credit isn’t excellent, or you have bad credit, there are ways in which you can improve your credit rating.

Consider buying a used bike

Instead of purchasing a brand new model, you can save a significant amount of money by buying a used motorcycle. Used bikes can still be in good condition and offer great performance, but at a lower price compared to new ones.

Negotiate the price

When buying a dirt bike, don't hesitate to negotiate the price with the seller. This is especially true when buying from a private seller or a dealership. Try to research the market value of the bike you're interested in and use that information to negotiate a lower price.

Look for discounts and promotions

Keep an eye out for discounts, sales, or promotions offered by dealerships or manufacturers. These can be seasonal offers or clearance sales where you can find dirt bikes at reduced prices or with added benefits such as free accessories or extended warranties.

Buy directly from the manufacturer

Consider purchasing the dirt bike directly from the manufacturer. Some manufacturers have factory-direct programs or online sales platforms where they offer bikes at lower prices compared to buying from a dealership. This eliminates the middleman and can result in cost savings.

Consider joining a riders' club

Some motorcycle riders' clubs or organisations offer discounts on bikes and accessories as part of their membership benefits. Look for local or national clubs that cater to motorcycle enthusiasts and inquire about any discounts or special offers they may provide or be aware of.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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What type of motorcycle loans are available?