Motorbike Loans

Motorcycle loan interest rates typically range from 5.99% to 14.99% p.a. depending on the bike's age, loan amount, your credit score, and whether it's a secured or unsecured loan. New motorcycles from established brands (Harley-Davidson, BMW, Ducati, Japanese big four) generally attract the best rates from 5.99-8.49% p.a. when financed through secured motorcycle loans. Used bikes in good condition (under 10 years old) typically get 7.49-10.99% p.a. Older bikes, custom builds, or bikes purchased privately may require unsecured personal loans with rates from 9.99-14.99% p.a. Your credit score significantly impacts your rate — excellent credit (700+) qualifies for the lowest advertised rates, while fair credit (600-699) adds 2-4% to the rate.

Deposit requirements for motorcycle loans typically range from 10-20% of the purchase price, though this varies by lender and bike type. New motorcycles from authorized dealers often require just 10% deposit if you have good credit (650+ score). Quality used bikes in strong condition may need 15-20% deposits. Premium bikes over $30,000 (high-end Harleys, Ducatis, BMWs) sometimes require 20-30% deposits. Some specialist lenders offer 100% motorcycle finance (no deposit) for established brands if you have excellent credit and strong income — though rates are typically 1-2% higher. If you're trading in an existing motorcycle, the trade-in equity counts toward your deposit. Learner bikes and older motorcycles (10+ years) usually need larger deposits around 20-30%.

Yes, most lenders finance used motorcycles up to 10-15 years old at time of purchase, with the bike being no more than 15-18 years old at end of the loan term. For example, financing a 2016 Harley-Davidson over 5 years means it'll be 13-14 years old when paid off — typically acceptable. Premium brands with strong resale values (Harley-Davidson, BMW, Ducati) may be approved older than Japanese bikes. Very old bikes (15+ years) or custom choppers often require unsecured personal loans rather than secured motorcycle loans, resulting in higher rates. The bike must be in good mechanical condition, roadworthy, and have comprehensive insurance. Some lenders require professional valuations for used bikes over $20,000 or older than 10 years.

Secured motorcycle loans (where the loan is secured against the bike) offer significantly better interest rates than unsecured personal loans — typically 2-4% p.a. lower. For example, a secured bike loan might be 6.99% p.a. while an unsecured personal loan is 10.99% p.a. The trade-off is the lender can repossess the motorcycle if you default. Secured loans work best for new bikes, quality used bikes under 10 years old, and established brands. Unsecured personal loans make sense when: (1) the bike is very old (15+ years), (2) it's a custom build with unclear market value, (3) you want to finance riding gear and modifications along with the bike, or (4) you need faster approval with less documentation. For most motorcycles over $10,000, secured loans save thousands in interest over the loan term.

Absolutely. Self-employed borrowers, contractors, and casual workers can access motorcycle finance through low-doc lenders who assess income using bank statements rather than payslips. You typically provide 3-6 months of bank statements showing consistent deposits, plus your ABN details if self-employed. Low-doc motorcycle loans have slightly higher rates (typically 1.5-2.5% more than standard loans) and may require larger deposits (20-30%), but approval rates are much higher for non-standard income. If you receive Centrelink benefits or pension income, specialist lenders consider this as regular income for smaller motorcycle loans (usually up to $15,000). The key is demonstrating you can comfortably afford repayments based on your actual cash flow rather than just tax return figures.

Only if you use the motorcycle for business purposes. If you're a courier, delivery rider, mobile mechanic, or use the bike for work-related travel (sales, client visits), you can structure the loan as a Chattel Mortgage and claim interest and depreciation as tax deductions based on your business use percentage. For example, if you use the bike 80% for courier work, you can claim 80% of interest payments and depreciation. GST-registered businesses can also claim GST on the purchase price upfront. However, personal motorcycle use (commuting, weekend rides, recreation) is NOT tax deductible. To maximise deductions, keep a logbook tracking business vs personal kilometers for 12 weeks, then apply that percentage to ongoing claims. Most couriers and delivery riders save $1,500-$3,000 per year in tax through proper bike finance structuring.

The optimal motorcycle loan term depends on the bike type and depreciation curve. Sports bikes and learner bikes depreciate quickly, so shorter terms (2-3 years) ensure you don't owe more than the bike is worth. Cruisers, touring bikes, and premium brands (Harley-Davidson, BMW, Indian) hold value better and suit longer terms (4-7 years) to keep payments manageable. For example, a $35,000 Harley-Davidson Road Glide over 5 years might cost $700/month at 7.49% p.a., while 3 years is $1,080/month — same bike, but the 5-year term is more affordable. However, longer terms mean more total interest paid. As a general rule: LAMS and sports bikes = 2-3 years; mid-range naked/adventure bikes = 3-5 years; premium cruisers and tourers = 5-7 years. Match your loan term to how long you plan to keep the bike.

Yes, motorcycle loan refinancing can save you money if interest rates have dropped, your credit score has improved, or you want to access equity for upgrades. You can refinance to: (1) get a lower interest rate (save $500-$2,000+ over remaining loan term), (2) extend the loan term to reduce monthly repayments, (3) borrow extra to finance accessories, exhaust systems, suspension upgrades, or riding gear, or (4) consolidate multiple debts into one lower-rate loan. The refinance process is similar to a new motorcycle loan — lenders assess your income, credit, and the bike's current market value. Most lenders require at least $5,000 outstanding on the existing loan to make refinancing worthwhile. We work with {COMPANY.lenderCount} lenders who offer competitive motorcycle refinance rates from 6.49% p.a. for quality bikes with strong borrower profiles.