4 Ways to Finance a Motorcycle

iQuanti: Motorcycles are treasured by many as being some of the most exciting vehicles on the planet, and for a lot of riders, these got-to-have vehicles come with a price tag that says got-to-finance. Many riders hit the road thanks to a motorcycle loan of sorts, which can come in different forms depending on the lender.   

The following common motorcycle financing options have general advantages and risks, but the best way to finance a motorcycle will ultimately depend on your unique circumstances.   

Unsecured Loans  

Some traditional lenders offer motorcycle loans which are a form of unsecured personal loan that can be used to finance a motorcycle. In most cases, you may also use these loans for other purposes, such as motorcycle maintenance costs, upgrades, etc.   

Since these loans are unsecured, you don't need to present any assets as collateral. And you also don't need to wait too long for the application process. These kinds of loans make a lot of sense for anyone who wants a fixed-rate, fixed-term loan that won't put their house or car at risk if they can't pay it off in time.  

Secured Loans  

Secured loans require collateral and are most commonly secured with the vehicle you're purchasing. If you don't make the payments on a secured motorcycle loan, you could lose your vehicle.  

Secured loans can be distributed either from a traditional lender, like a bank or credit union, or a nontraditional lender, like a motorcycle dealership. 

Equity loans   

Equity loans are secured loans that allow you to borrow against equity built up in your home. You usually need at least 20% equity in your home to qualify for an equity loan or HELOC (Home Equity Line Of Credit), and if you do, bear in mind that taking out these loans is a lengthy and costly process, and failing to make your payments could result in losing your home. 


Leasing a motorcycle is technically not buying a motorcycle because you are essentially renting the motorcycle. The advantage of leasing is that it may be easier to get approved. The disadvantages include high fees and interest that compounds, which usually means leases will cost more overall than loans.  

Many leasing companies require large down payments, and the motorcycle will be repossessed by the lender at some point. It will be repossessed sooner if the lessee misses any payments, which will also tremendously hurt their credit score.  

Find the right lender to fuel your passion  

Generally speaking, a traditional lender such as a financial institution will provide you with the most options. For example, whereas many dealerships and manufacturers offer one or two financing options that only apply to the vehicle being purchased, a traditional lender may offer many types of secured or unsecured loans, depending on your credit score and other eligibility factors.  

In many cases, it doesn't hurt your credit score to explore your options with a traditional lender that offers prequalification for personal loans and/or motorcycle loans. You can also consult a loan specialist and/or financial planner for additional information about what options could work best for you. 

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Source: iQuanti, Inc.