Compare motorcycle loans Australia

What is a motorcycle loan?

A motorcycle loan is a personal loan that’s used to finance the purchase of a motorcycle. While some lenders advertise dedicated 'motorcycle loans', those in the market for a motorbike can feasibly take out any regular unsecured personal loan to buy their ideal wheels. Or, if you're purchasing a new or near-new motorbike, you might turn to a secured personal loan or car loan instead.

How do motorcycle loans work?

Motorcycle loans work much the same as standard personal loans. You’ll agree to borrow a certain amount of money to buy the motorbike, and then repay it, plus interest, in regular repayments over a set period of time. 

Your loan will either charge you a fixed or variable interest rate. Many also charge fees, often for setting up the loan or to cover its ongoing admin costs.

You can usually opt for a secured or unsecured loan. The table above shows a range of unsecured personal loans available for the purchase of a motorcycle. An unsecured loan doesn’t ask that an asset is tied to it but will generally charge higher interest rates.

If you’re buying a newer motorcycle, you might be able to take out a secured loan. These use an asset (like the bike you’re buying) as security against the loan. You’ll usually receive a lower interest rate, but the lender can repossess the security if you can’t pay the loan back. 

Who has the best motorcycle loans in Australia?

There’s no one ‘best’ motorbike loan provider–the best loan for you will depend on your financial circumstances, needs, and personal goals.

To find the best motorbike loan for you, ask yourself:

• How much do you need to borrow?
• How soon do you need the money?
• How much can you afford in repayments?
• How long would you be willing to be in debt for?
• Can you fulfil a lender’s eligibility criteria (minimum income, residency status, credit score threshold)?
• Are there any alternative credit or finance options available to you (like using your savings or accessing equity in your home)?

You can use Canstar's personal loan calculator to get an idea of what your repayments could be and how the interest rate, loan amount, or term length could affect them.

Once you know what you’re after, use the comparison table above to view a variety of motorcycle loan options from our Online Partners. Use the table’s filters to narrow the field down to those that best suit your needs. 

You can also click the ‘GET RATE ESTIMATE’ button at the top of the page to find loan products you’re likely eligible for. Simply answer some questions about how much you want to borrow, your ideal loan term, the purpose of the loan, your personal situation, and either connect or estimate your credit score. You can also check your credit score for free with Canstar or via the Canstar App.

How to compare motorcycle loans

Here are some things to think about when choosing a motorcycle loan:

• Is the interest rate fixed or variable? With a fixed rate, the interest rate and your repayments will stay the same for the life of the loan. With a variable rate, the interest rate can go up or down and the size of your repayments can vary as a result.
• What’s the comparison rate? The comparison rate on a personal loan takes into account both the interest rate and most upfront and ongoing fees and charges. It’s designed to give you a better idea of the total cost of the loan each year,
• What are the fees? Personal loan fees can include establishment, monthly service, missed payment, extra repayment, and early repayment fees.
• What’s the loan term? A loan with a longer term will have lower repayments than one with a shorter term. However, longer terms usually accrue more interest over their life.
• What features are available? Certain loan features may give you more control over your budget. For example, some may allow for extra repayments on the loan without charging a fee or come with a redraw facility attached so you can access extra repayments if you need to.

Read any terms and conditions carefully and consider the loan’s documentation like the Key Facts Sheet and Product Disclosure Statement (PDS) before signing up.

Am I eligible for a motorcycle loan?

Motorcycle loans have similar eligibility requirements to regular personal loans. You’ll have to be:

• At least 18 years or older
• An Australian citizen or permanent resident
• Employed or have a steady source of income to repay the loan with
• A good credit history

Some lenders may have additional eligibility requirements, such as a minimum annual income or particular credit score.

How to apply for a motorcycle loan

Most motorcycle loan lenders have an online application form on their website. To apply for a motorcycle loan, you’ll need to hand over information such as:

• Photo ID like a driver’s licence or passport and supporting documents like your Medicare or bank card.
• Proof of income, typically in the form of pay as you go (PAYG) payslips from your employer or your annual tax return.
• Proof of savings, typically in the form of bank statements.
• Your employment details for the past three years.
• A list of any assets you own, including vehicles and property.
• A list of debts you already have, such as other personal or home loans, credit card debts and credit limits, and outstanding buy now pay later (BNPL) balances.
• A list of your general living expenses, including groceries, utilities, streaming services, rent, medical and transport costs, and education fees.

You may not need to provide all of this information, but it’s good to have on hand just in case.