Motorcycle Loans: Best Rates & Lenders

If you’re in the market for a motorcycle, you may be looking for ways to finance it. After all, a new bike doesn’t come cheap and may run you anywhere from $5,000 to $40,000 or even more.

The good news is several motorcycle loans can help you cover the cost of a motorcycle. Below, we’ll dive deeper into motorcycle loans so you can choose the ideal option for your unique situation. 

Best motorcycle loans

With countless motorcycle loans available, finding the best ones for your particular budget and needs can be difficult. That’s why we did the heavy lifting for you and compiled this list of personal loans you can use to finance your motorcycle. 

Compared to other types of financing, personal loans usually offer a faster application and funding process and can allow you to build or improve your credit through on-time payments. Plus, they come with a fixed, predictable repayment schedule you can budget in advance.

Credible

SoFi

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LightStream

Where to find motorcycle lenders

To lock in the best motorcycle loan rates, shopping around and exploring all your options is a good idea. As you research, you’ll find that rates can vary greatly based on lender type and factors like your credit and borrowing. 

Here are three types of motorcycle lenders you may want to look into. 

Online motorcycle loans

Recently, more motorcycle lovers have turned to online personal loans to fund purchases. They’re quick, easy to apply for, and you don’t need to visit a bank.

Some online lenders offer specific motorcycle financing, and others offer low-interest unsecured personal loans to finance a motorcycle, moped, or scooter. These loans have competitive terms compared to a secured motorcycle loan.

The motorcycle lenders we covered above offer online personal loans.

Pros

• Convenient because you can apply online and get fast funding without visiting a bank.

• Use it to buy a used motorcycle from another owner in a private sale, which could save you money.

• You might qualify for better rates or more flexible terms than dealership or manufacturer financing.

• Often won’t require you to use your bike as collateral.

Cons

• If you have bad credit, getting a low interest rate on your loan might be harder.

• You can’t take care of all the paperwork at the dealership.

• You might pay more for an unsecured loan than a secured loan.

Manufacturer financing

Manufacturers know buyers sometimes struggle with figuring out how to finance a motorcycle, so many offer financing on motorcycles if you buy them directly from their dealerships.

For example, Harley-Davidson has its own financing arm via Eaglemark Savings Bank. BMW is another motorcycle manufacturer that offers financing.

Pros

• You can often finance accessories and protection plans via a manufacturer’s loan.

• Many manufacturers offer financing deals at different times of the year, including 0% interest for a limited period.

Cons

• Might charge high interest rates if you have bad credit.

• 0% interest deals are often on a limited selection of models.

• Might have shorter repayment terms of 1 to 2 years, meaning higher monthly payments.

• Often require minimum down payments.

Ask the expert

Eric Kirste

CFP®

When deciding how to finance a motorcycle, first understand where you stand financially—1) Know your credit score. If there are any mistakes on your credit report, work with the credit bureaus to fix them. 2) Review your budget to ensure you know how much monthly payment you can afford. This is very important. If you cannot afford the payment, then the rest will be difficult to navigate. 3) Visit with banking and financial relationships you have in place now. Some may provide relationship pricing or have the opportunity to use alternative financing for your motorcycle purchase. 4) After reviewing your existing relationships, shop around to other institutions or those primed in motorcycle financing to review pricing and terms. Focus first on dealer financing options. If those do not meet your needs, explore alternatives such as other loans or a line of credit.

How to finance a motorcycle 

Follow these steps to finance a new (or used) bike.

1. Check your credit: First, find out where you stand credit-wise so you know what types of motorcycle loans you might qualify for. Visit AnnualCreditReport.com to pull free copies of your credit reports and dispute any errors or inaccuracies affecting your score.
2. Shop around: Then, research and look for motorcycle or auto loans from at least three different lenders. Compare rates, terms, fees, and reputation to zero in on the right loan for your situation. Some lenders will let you prequalify and check potential loan offers without any impact on your credit. 
3. Apply: Depending on the lender, you may be able to apply online or in person at a local branch. Be prepared to provide detailed personal information and submit documents such as a government-issued ID, paystubs, bank statements, and tax returns.
4. Wait for approval and funding: You’ll receive a loan agreement if approved. Carefully read it and ask the lender any questions you might have before you sign on the dotted line. Once you move forward with the motorcycle loan, you should receive the funds, often within a few business days or a week.
5. Repay your loan: Make your loan payments as you agreed to in your loan agreement. Remember that even one missed or late payment can hinder your credit score or force the lender to repossess your bike so it’s important to prioritize on-time payments. You can enroll in autopay or set up calendar reminders to simplify repayment.

How to get the best motorcycle loan rates

Because bikes can be expensive, small differences in the interest rate can make a huge difference in how much you’ll pay in interest over the life of your loan.

These tips can score the best motorcycle loan rates.

• Get preapproved: If you get preapproved for a motorcycle loan, you’ll know exactly how much you can afford to borrow and can shop accordingly. You’ll also position yourself as a more serious buyer and speed up the approval and funding process.
• Improve credit score: Your credit score ranges from 300 to 850 based on your credit history. It tells lenders how likely you might be to repay your loan. Before you apply, pay your bills on time, keep debt levels low, and keep old accounts open to increase your credit score. 
• Lower your debt-to-income ratio: Your debt-to-income ratio looks at how much you pay towards your debt each month and adds on how much you’ll have to pay if you take on the loan you’re applying for. The lender will usually only lend to you if that amount is less than 36% of your monthly income. If your debt-to-income ratio is higher than you’d like, pay down your debt and boost your income.
• Save for your down payment: If you’re getting an unsecured personal loan from an online lender, you might not need a down payment. However, some motorcycle loan lenders require a down payment of at least 10%. If you don’t have enough cash for a substantial down payment, you might want to cut your expenses or pick up a side hustle or part-time job.

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Types of auto loans

FAQ

What credit score do motorcycle financing companies require?

Most lenders prefer borrowers with a credit score of at least 620 to qualify for a motorcycle loan. However, some lenders offer loans to those with lower scores, though the interest rates may be higher. Improving your credit score before applying can help you secure better terms and rates.

Can I use a personal loan to buy a motorcycle?

Yes, you can use a personal loan to finance a motorcycle. All the lenders we recommend provide personal loans. A personal loan offers flexibility, allowing you to use the funds for various purposes, including purchasing a motorcycle.

How long are typical motorcycle loan terms?

Motorcycle loan terms tend to range from 24 to 72 months. Shorter terms come with higher monthly payments but lower overall interest costs, while longer terms spread out the payments but may result in paying more interest over time. Choosing the right term depends on your budget and financial goals.

Are there any specific requirements for financing a motorcycle?

Lenders usually require proof of income, a stable employment history, and a good credit score to qualify for a motorcycle loan. Some lenders may also require a down payment, ranging from 10% to 20% of the motorcycle’s purchase price. 

A larger down payment can improve your chances of approval and secure better loan terms. Note that none of our recommended lenders require a down payment.

How we chose the best personal loans for motorcycles

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best online motorcycle loans