Few things beat the feeling of a new set of wheels, and for a lot of Aussies, two of them beat four. A motorbike is cheaper to buy than a car, lighter on fuel, a doddle to park, and a genuine joy to ride, whether you are weaving through city traffic on a commuter or carving up the hills on a weekend. The thing standing between you and that next ride is usually the upfront cost, and that is where motorbike finance comes in.
Motorbike finance simply spreads the cost of the bike into manageable repayments, so you can get riding now rather than saving for another year. As an accredited finance broker, our job is to compare your options across our panel of more than 70 lenders and find the right deal for your ride, instead of you taking whatever the dealer puts in front of you. Our service is free for you, and the goal is a sharp deal with no nasty surprises.
Here is the no-nonsense guide to motorbike finance, plus six smart tips to fund your ride the right way.
Why Finance a Motorbike?
The appeal of a bike is easy to understand. They cost a fraction of what a car does, sip fuel, are cheap to register and run, and turn a dull commute into the best part of the day. For many riders a bike is not a toy at all but a smart, affordable way to get around, and for others it is the weekend escape they have promised themselves for years.
Financing makes sense because it gets you on the road now without draining your savings, and because the dealer’s in-house finance is often not the sharpest deal going. Comparing motorbike finance across a range of lenders, rather than signing whatever is on the desk, is frequently where the real savings sit. Whether it is your first bike or a long-overdue upgrade, spreading the cost sensibly keeps the dream affordable.
What Kinds of Bikes Can You Finance?
Just about any roadworthy bike is fair game. Road bikes, cruisers, nakeds, commuters, adventure tourers and sports bikes can all be financed, new or used, from a dealer or a private seller. Learner-legal bikes are covered too, which matters if you are just starting out. Whatever you are eyeing off, our motorbike loans page is the place to begin, and you can see how it fits the wider picture in our guide to leisure finance.
What Does a Motorbike Cost to Buy and Run?
Bikes span a huge price range, so treat these as a rough guide. A learner-legal commuter might run from around $3,000 to $8,000, mid-range road bikes and cruisers commonly land between $10,000 and $20,000, and premium sports, touring and adventure bikes climb well beyond that. There is genuinely something at most budgets, which is part of the appeal, and it shapes how much motorbike finance you need.
The sticker price is only half the story, though. Registration, compulsory and comprehensive insurance, servicing, tyres and chains all form the running cost, and insurance in particular can bite for sports bikes or younger riders. Building those into your numbers from the start keeps your motorbike finance comfortable rather than a stretch. If a car is also on the cards, our personal car loans page covers that side too.
How Motorbike Finance Works: Secured vs Unsecured
Here is the bit the generic bank pages never bother to explain properly. Most motorbike finance is one of two types. A secured loan uses the bike itself as security, which means a lower interest rate because the lender has something to fall back on. This suits newer and dearer bikes, and over a typical loan term, that sharper rate adds up to real money saved.
An unsecured loan does not tie the loan to the bike, which can make it the practical choice for cheaper or older bikes that lenders are less keen to secure against. It is often quicker and simpler, but the rate is usually higher to offset the lender’s risk. Borrowing amounts commonly run from a couple of thousand dollars up to around $75,000, covering everything from a first commuter to a top-shelf tourer. A broker can weigh up secured against unsecured for your situation and compare motorbike finance across the panel, all subject to lender approval. If you would rather keep the loan separate from the bike entirely, an unsecured personal loan is another route worth understanding.
Financing a Used Bike: Always Do a PPSR Check
Plenty of great bikes are bought second-hand, and used motorbike finance is readily available, but a used purchase comes with one step you must not skip. Before you hand over a cent for a private-sale bike, run a check on the Personal Property Securities Register. For a few dollars it tells you whether there is still money owing on the bike, which is vital, because if there is and the seller does not clear it, the bike could be repossessed even after you have paid for it. The same check flags whether a bike has been written off or reported stolen.
Beyond the PPSR, give a used bike a proper once-over: check the service history, the condition of the tyres, chain and sprockets, and look for telltale signs of a drop or a hard life. Lenders will finance used bikes happily enough, though very old bikes can attract different terms, and doing your homework protects both you and the motorbike finance behind the purchase.
Motorbike Finance for Learners and First-Time Riders
If you are just getting your licence, your choice of bike is not wide open. Most states run a Learner Approved Motorcycle Scheme, commonly called LAMS, which restricts learner and provisional riders to bikes within a set power-to-weight limit. Before you fall for a particular bike, check that it is LAMS-approved in your state through your state road authority, so your finance is not tied to something you are not yet licensed to ride.
For first-timers, the smart play is to start sensible. A reliable, LAMS-legal bike that you can grow into beats an expensive machine you are nervous to ride, and it keeps your motorbike finance modest while you build experience. You can always upgrade once your skills and your licence have progressed.
Motorbike Finance vs Dealer Finance
When you buy from a dealer, they will usually offer finance on the spot, and it is tempting to just sign and ride away. The catch is that dealer finance is only ever one offer, and the convenience often comes at a higher rate than you could get elsewhere. You rarely know whether it is competitive, because you have nothing to compare it against.
Arranging your own motorbike finance flips that around. With a broker comparing lenders across a panel, you see far more of the market, you are more likely to land a sharper rate, and you walk into the dealership already approved, which is a genuinely stronger negotiating position. Convenience is worth something, but rarely as much as the difference a proper comparison can make.
6 Smart Tips Before You Finance a Motorbike
Run through these before you commit and your motorbike finance will set you up properly rather than catch you out.
- Budget the gear, not just the bike. A helmet, jacket, gloves, boots and pants are not optional extras, they are essential safety kit, and a decent set can run well over a thousand dollars. Build the gear into your budget so the riding is safe from day one.
- Weigh up secured versus unsecured. Securing the loan against the bike usually means a lower rate, while unsecured can suit cheaper or older bikes. A broker can compare both for your situation.
- Check a used bike properly, including a PPSR search. Confirm there is no money owing, write-off or theft history, and inspect the bike’s condition before you buy. It is the cheapest insurance you will ever get.
- Compare the comparison rate, not the monthly figure. The comparison rate folds in most fees and gives you a truer cost, so weigh that up rather than just the headline rate or the monthly repayment.
- Factor in the running costs. Registration, insurance, servicing, tyres and chains all cost money, and insurance in particular can be higher for sports bikes or younger riders. Know the full picture before you sign.
- Get pre-approved before you shop. Sorting your finance up front gives you a firm budget, strengthens your hand against dealer finance, and lets you move quickly when the right bike appears.
Do You Need a Deposit?
Not always. Some lenders will finance the full purchase price of a bike, while others prefer to see a deposit. Even when it is not required, putting some money down reduces what you borrow, lowers your repayments, and can sometimes earn a better rate because the lender takes on less risk.
A trade-in can do the same job as a cash deposit, with the value of your old bike reducing the amount of motorbike finance you need. Whether a deposit makes sense comes down to your budget and your goals, and it is worth a thought before you apply.
Borrowing Responsibly for Your Ride
A bike is a brilliant thing, but the finance behind it still needs to fit your life. Make sure the repayments sit comfortably in your budget alongside the running costs, because the freedom of riding loses its shine fast if the loan is a stretch. Borrow what you comfortably can, buy the bike that suits where you are at as a rider, and you will enjoy it far more.
The Moneysmart personal loans guide is a useful primer on how this kind of borrowing works, and it is always worth a read of our warning about borrowing page before you commit. Motorcycle registrations have held strong in recent years according to ABS data, so you will be in good company out there.
Final Thoughts
A motorbike is one of the most affordable and enjoyable sets of wheels you can own, and with the finance sorted sensibly it is well within reach. Budget for the gear as well as the bike, get your head around secured versus unsecured, do your checks on anything used, and borrow only what sits comfortably in your budget.
Whatever you are riding off on, we can help you compare motorbike finance across our lender panel and find a deal that suits, so you can spend less time wrangling finance and more time in the saddle. Your next ride is closer than you think.
Disclaimer
The information in this article is general in nature and does not take into account your objectives, financial situation or needs. It is not personal advice or a recommendation to apply for any product. Before acting on any information, you should consider whether it is appropriate for your circumstances and seek independent advice where appropriate.
Get A Loan Finance Pty Ltd is not a lender. We are an accredited finance broker and work with a panel of lenders and finance providers. Product features, eligibility criteria and availability can change without notice, and all finance is subject to lender approval.
