Motorbike loans are a type of financing specifically designed for individuals looking to purchase a motorbike. Much like a car loan, they allow borrowers to spread the cost of a motorbike over a set period, usually in monthly instalments. Motorbike loans can be secured, where the motorbike itself serves as collateral, or unsecured, where the loan is given based on the borrower's creditworthiness. The loan can cover the total cost of the motorbike or a part of it, depending on the borrower's financial situation and the lender's terms.
Here's what a motorbike loans typically looks like:
A motorbike loan is primarily used for the purchase of a motorbike. This can include new or used motorbikes from dealerships or private sellers. Some lenders may allow the loan to also cover additional costs, such as protective gear, accessories, insurance, or even maintenance and repair costs.
Here are some common reasons people take out a motorbike loan:
A motorbike loan can be used to fund the purchase of a brand-new motorbike from a dealership.
Motorbike loans can be used to buy used bikes, whether from a dealership or a private seller.
If a motorbike requires extensive repairs, a motorbike loan can provide the necessary funds.
Owners can use a motorbike loan to upgrade their existing motorbike with better or more advanced parts.
A motorbike loan can help cover the cost of necessary safety gear like helmets, gloves, and body armor.
For those interested in racing, a motorbike loan can fund the purchase of a specialised racing bike.
A motorbike loan can also help cover the cost of insurance premiums.
A motorbike loan can fund the purchase of an off-road or dirt bike for those interested in off-road riding.
For enthusiasts and collectors, a motorbike loan can help acquire classic or rare motorbikes.
For novice riders, a motorbike loan can cover the cost of professional riding lessons to enhance their skills and safety on the road.
Calculate your repayment estimates and more.
The amount you can borrow for a motorbike loan in Australia varies greatly and depends on several factors such as your personal financial situation, the lender's criteria, and the cost of the motorbike you want to purchase. Motorbike prices can range significantly, from a few thousand dollars for used bikes to over $30,000 for high-end, brand-new models. If you're considering a motorbike loan, you should factor in not only the cost of the bike itself but also additional costs like insurance, gear, maintenance, and registration fees.
Lenders typically offer motorbike loans starting from around $2,000 up to $50,000 or even more. The exact amount you're eligible to borrow will largely depend on your credit history, income, and existing financial commitments. Lenders will assess these factors to determine your ability to repay the loan. It's important to note that while it might be tempting to borrow the maximum amount offered, you should only borrow what you can comfortably afford to repay. Remember, a motorbike loan should enhance your lifestyle, not cause financial stress. Always consider your current financial situation, budget, and future income stability before finalising the loan amount.
To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.
Balance over time
Lenders consider several factors when assessing your eligibility, including your credit score, income, debt-to-income ratio, age, residency, and required documentation. While meeting the eligibility criteria doesn't guarantee loan approval, having a good credit score, stable income, and a positive financial profile significantly improve your chances.
You are eligible to apply for a motorbike loan if you are:
Applying for a motorbike loan is easy and only takes a few minutes. Get started by filling out some basic information into our application form. We’ll review your information, and someone will be in contact with you to discuss the best option for you from over 40+ Australian lenders.
If you’re eligible for a motorbike loan, and you are happy with the initial quote, you will need to prepare documents such as:
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When searching for a motorbike loan, it's essential to understand the different factors to find the best fit for your needs. From interest rates and fees to loan terms and early payout options, each factor can increase or descrease the total amount you will repay.
When it comes to obtaining a motorbike loan, one of the key factors to consider is the interest rate. The interest rate directly affects the overall cost of borrowing and your monthly repayment amount. It's crucial to compare interest rates from different lenders to ensure you secure a competitive rate that aligns with your financial goals and helps you save on interest expenses over the loan term. Keep in mind that interest rates can vary based on factors such as your creditworthiness and the lender's assessment of risk.
In addition to the interest rate, it's important to evaluate the fees associated with motorbike loans. These fees may include application fees, origination fees, processing fees, and ongoing maintenance fees. By carefully understanding the fee structure of different lenders, you can choose a loan with transparent and reasonable fees. Evaluating both the interest rate and fees will help you determine the overall cost of the loan and ensure you minimize costs throughout the loan duration.
When comparing motorbike loan options, considering the interest rate alone is not enough. The comparison rate provides a more comprehensive understanding of the true cost of the loan. It incorporates both the interest rate and any additional fees associated with the loan, giving you a clearer picture of the total cost of borrowing. By comparing comparison rates from different lenders, you can make more informed loan comparisons and select the option that offers the best overall value.
The loan term, or the duration of repayment, is an essential aspect to consider when obtaining a motorbike loan. Shorter loan terms generally result in higher monthly payments but lower overall interest costs, as the loan will be repaid in a shorter timeframe. Longer loan terms may offer lower monthly payments but could result in higher interest expenses over the life of the loan. It's crucial to assess your financial situation and determine the loan term that aligns with your ability to comfortably make repayments while minimizing interest costs.
Flexibility in loan repayment is valuable when considering a motorbike loan. Early payout options allow you to repay the loan before the agreed-upon term without incurring penalties or additional charges. This flexibility can be advantageous if you come into unexpected funds or wish to reduce interest expenses. Before finalising a motorbike loan, review the terms and conditions to ensure that early repayment is possible and to understand any potential limitations or conditions that may apply.
Some motorbike loans may include the option for balloon payments. A balloon payment is a larger lump-sum payment due at the end of the loan term. While balloon payments can reduce monthly repayment amounts, it's important to carefully consider their implications. Ensure that you will have the necessary funds available to make the balloon payment when it becomes due. Balloon payments can be a suitable option if you anticipate having the funds or plan to refinance the balloon payment at the end of the loan term. However, it's crucial to fully understand the impact of balloon payments on your overall financial strategy.
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