A step-by-step guide to motorcycle financing
No idea how motorcycle financing works? Find out everything there is to know about motorcycle financing, including how to apply for motorbike finance.
Are you dreaming of hitting the road on a sleek motorbike? We’ve all been there - especially when you’ve just got your motorbike licence. That itch to get on your very first motorbike is real!
Wondering how to afford a motorbike in the first place? Fortunately, financing a motorbike can make that dream of owning a bike a reality, allowing you to enjoy the freedom and excitement of two-wheeled adventures. In this guide, we will walk you through the process of financing a motorbike, providing valuable insights and tips to help you navigate the world of motorbike financing as simply as possible.
1. Set your budget
Before delving into the world of motorbike finance, it’s worth getting your finances in order and determining how much you can afford. You may find you’re able to get a motorbike outright, or, you’ll need to enlist the help of a motorbike financing company.
Thinking you’ll need to go down the latter route? A motorbike finance calculator can give you an idea of how much you can expect to pay per month towards your dream motorbike. Whilst it’s not a set figure (as there are many factors at play), you’ll still be able to get a ballpark figure of what to expect. Be as realistic as you can at this stage to avoid disappointment, and consult with a finance expert if you need professional advice.
Can’t get the cash together for a deposit? A zero deposit motorbike financing option is possible these days - which is great news if you’re eager to get riding as soon as possible. It’s worth speaking to your broker or lender about how this works and how it’ll affect your APR.
2. Explore finance options
How does one get motorbike financing to begin with? You may be greeted with a ton of terminology that boggles your mind. We have a guide to motorbike financing that’ll help you out if you need more detail, but we’ll summarise the most common terms you may come across right here.
Hire Purchase
A hire purchase (HP) is a type of financing option that involves making fixed monthly payments towards your motorbike. You’ll put down a deposit towards your bike, and make repayments over a set period of time. Once your HP term comes to an end and you’ve made all of your repayments in full, you’ll officially own the motorbike. Plus, at the end of the HP agreement, you’ll have to pay for the title of the bike to be transferred to your name.
PCP
A personal contract purchase (PCP) is a financial arrangement similar to a hire purchase (HP). It involves making an initial deposit and regular payments over a specified duration. At the end of the agreement, the borrower has the option to make a final balloon payment (lump sum payment) to gain full ownership of the motorbike, return it to the lender, or part exchange with the dealer.
CS
Conditional Sale (CS) is a financial agreement that also shares similarities with Hire Purchase (HP). However, CS and HP agreements differ from ordinary credit agreements in that ownership of the vehicle is not transferred to the buyer until the full agreement has been paid off.
Personal loan
Personal loans are an option where you simply request to a bank or broker that you wish to take out a specified amount of money and pay it back over a period of time. The only downside is that it’s not a specific motorbike loan, so you won’t be greeted with any options at the end of your payment term with regard to your motorbike.
Cash
If you have the cash, then paying for a motorbike outright is an option! There’s not much to this, simply pick your bike and pay it off outright.
Credit card
Credit cards can also be an appealing option for financing a motorbike, especially if you have access to a credit card with 0% interest (like a balance transfer card). It’s crucial to be diligent about paying off your credit card balance before the interest-free period expires to prevent the risk of incurring higher monthly repayments.
Motorbike broker financing
Want to take the work out of finding a lender? A motorbike broker will do the leg work for you. They’ll find motorbike loans, which may include HP or PCP agreements tailored to specific brands or models of bikes, as well as your current circumstances and credit history. When you get your options back, you’ll need to compare the best rates, which again, a broker can assist with.
3. Look at your credit history
Your credit history will determine how much financing you can get towards your bike. Bad credit financing is an option for those who have a bad credit history but want to get a motorbike. In fact, bad credit motorbike finance is our speciality - we take your current situation into account and match you with lenders who are appropriate to your circumstances.
However, you may decide to take steps to improve your credit for a motorcycle loan. Whilst we cover this in our guide, here’s a rundown of these tips to consider:
- Check your credit score to see where you’re at
- Keep up with repayments on other loans or debt you may have
- Reduce your credit utilisation
- Don’t apply for too much credit simultaneously
- Get on the electoral roll
4. Choose your motorbike
Once you have an idea of what your credit history looks like and what you may expect your repayments to be, you can get to researching your choice of motorbike! We imagine you already have a few in mind already, but we recommend choosing a motorbike that you can realistically afford - don’t stretch yourself too thin.
With your budget in mind, research different makes and models, considering factors such as performance, comfort, reliability, and maintenance costs. You could even visit local dealerships to see the bikes in person, take test rides, and ask questions. Not sure which bike to get? We regularly review bikes on the Superbike Loans blog.
5. Consider other circumstances
There are many factors to consider when getting motorcycle finance, such as existing debt, affordability and personal circumstances which may affect you in the future.
For example, if you have no guarantor for motorbike financing, then it’s worth seeking out no guarantor motorbike financing as an option, particularly with a broker such as ourselves. After all, everyone’s circumstances are different and we believe financing your motorbike should be stress-free. We’ll look at your current situation to determine current and future repayments, to find the right deal for you.
6. Apply!
Once you’ve considered all of your financials, checked your credit score and picked your bike, it’s time to take the plunge and apply for motorbike finance. As a broker, we make this super easy by asking questions related to your personal circumstances, employment and finances.
You’ll need to provide specific documentation to the lender, such as proof of identity, income, and address (or addresses over the past few years). Review the lending options carefully, including the APR you’ll need to pay on top of your monthly repayments - and ensure that you understand all terms and conditions before signing.
If you have any questions, don't hesitate to seek clarification from the lender (or broker on your behalf).
Frequently asked questions about applying for motorcycle finance
Who can benefit from motorcycle finance?
Motorcycle finance benefits those looking to afford a new motorbike over a period of time, without having to pay for it right upfront. In fact, motorcycle financing is perfect for those looking to afford their next (or first) motorbike too.
Why get motorcycle financing?
Besides making your motorbike more affordable and increasing your credit rating, motorcycle financing is great for those who want to get a bike as soon as possible. Whether it's to explore a hobby or commute to work, motorcycle financing can really help in both scenarios.
How quickly can you get motorcycle finance and what's the typical contract length?
The typical contract length for motorcycle financing is anywhere between 12-60 months. In terms of how quickly you can get motorcycle financing, this will depend on how quickly you complete your application, get your quote back from your broker, how soon you pick your desired lender and the processing time.
How old do I need to be to get motorcycle finance?
You’ll need to be at least 18 years old to be able to apply for motorcycle finance.
How to get financing for a motorcycle with bad credit
Ideally, you’ll need to source motorcycle financing with a broker such as ourselves. We work with a huge portfolio of lenders, some of which specialise in finance for those with bad credit histories. This can typically be harder to find yourself, so enlisting the help of a finance broker can remove a lot of the hard work.
How to get approved for motorcycle financing
To increase your chances of approval for motorcycle financing, start by determining your budget and researching different financing options available. We listed a few of these above, however, a common route is to go through a broker who can recommend various lenders appropriate to your circumstances. Once you have a few lenders to choose from, thoroughly research and compare them whilst paying attention to interest rates, loan terms, and customer reviews.
How hard is it to get financing for a motorcycle?
Not hard at all - at least we don’t believe it should be! Obtaining financing for a motorcycle is relatively easy for most people. It can be tricky if it’s your first time diving into the world of motorbike finance. But with a broker such as ourselves, we use your details, credit rating and affordability to source the appropriate lenders. This way, you can see your options, even if you have bad credit, no guarantor or can’t put down a deposit.
Ready to apply for motorcycle finance? Get in touch with us to find out more. Our friendly customer service team will assist you in your application, as well as sourcing the right lenders for your circumstances.