8 Best Motorcycle Loans of April 2024
Updated March 25, 2024 at 4:09 pm
Motorcycle loans can come in many different forms, including secured loans from dealerships and unsecured personal loans. While secured loans for motorcycles help buyers finance the bike they want directly at the source, the best motorcycle loans are typically unsecured personal loans that feature competitive fixed interest rates, fixed monthly payments and set repayment terms that will not change.
Our picks for these loans feature the best motorcycle loan rates for purchases in nearly any amount. This includes less expensive bikes, which may cost anywhere from $500 to $1,500 according to J.D. Power. However, the best motorcycle loans can also finance high-end luxury motorcycles that may cost as much as $25,000, $50,000 or more.
Our Methodology Newsweek Vault’s loan experts evaluated multiple data points to help our readers make sense of their borrowing options across student loans and personal loans. To narrow down the best available offers, we weigh the product pros and cons across five core categories, including:
- Application process
- Eligibility requirements
- Interest rates
- Loan amounts (minimum and maximum)
- Repayment flexibility
Our Picks - Best for Excellent Credit: LightStream
- Best for Large Loan Amounts: SoFi
- Best for No Fees: Discover
- Best for Small Loan Amounts: Upgrade
- Best for Imperfect Credit: LendingPoint
- Best Manufacturer Financing: Harley Davidson
- Best for Fast Funding: Avant
- Best for No Minimum Credit Score: Upstart
Best Motorcycle Loans of 2024
The best motorcycle loans are offered through a range of online lenders and financing companies. We dive into each lender, their pros and cons and who they’re best for in the sections below.
Best for Excellent Credit
LightStream
on Credible’s website
Why we chose it: While LightStream only offers financing to consumers with good to excellent credit, its loan options feature competitive interest rates and no origination fees or hidden fees. Applicants can qualify for $5,000 to $100,000 in funds for a motorcycle and repay the loan over 36 to 84 months.
Pros
- Competitive interest rates
- Make payments for 36 to 84 months
- No origination fees or hidden fees
Cons
- Excellent credit and autopay required for the lowest rates
- No prequalification option
Additional Information
- Minimum Credit Score: Not disclosed
- Early Payoff Penalty: None
- Late Fee: None
- Origination Fee: None
Best for Large Loan Amounts
SoFi
on Credible’s website
Why we chose it: SoFi is another lender that offers personal loans in amounts from $5,000 to $100,000 along with competitive interest rates. Users can repay their loans over 24 to 84 months and qualify for motorcycle financing with no origination fees or hidden fees and unemployment protection built in.
Pros
- Competitive interest rates
- No origination fees or hidden fees
- Comes with unemployment protection
Cons
- Good to excellent credit required
- Autopay required for best rates
- Minimum loan amount of $5,000
Additional Information
- Minimum Credit Score: Not disclosed
- Early Payoff Penalty: None
- Late Fee: None
- Origination Fee: None
Best for No Fees
Discover
on Credible’s website
Why we chose it: Discover is an excellent choice for borrowers who want financing with no origination fees and no hidden fees. However, these loans are best for motorcycles that cost less than $40,000 and for applicants with good credit or better.
Pros
- No origination fees or hidden fees
- Flexible repayment terms
- Get prequalified online
Cons
- Minimum income requirement of $25,000
- No co-signed or joint loan options
- Maximum loan amount of $40,000
Additional Information
- Minimum Credit Score: 660
- Early Payoff Penalty: None
- Late Fee: $39
- Origination Fee: None
Best for Small Loan Amounts
Upgrade
on Credible’s website
Why we chose it: Upgrade offers unsecured personal loans for motorcycles and other purposes in amounts as low as $1,000, which makes them a good option for budget-minded bike purchases. Interest rates can be competitive for borrowers with good credit, and potential applicants can “check their rate” without a hard inquiry on their credit reports before they apply.
Pros
- Borrow $1,000 to $50,000
- Get prequalified online
- Available to borrowers with fair credit
Cons
- Origination fee of 1.85% to 9.99%
- Autopay required for best rates
- Up to a $10 late fee
Additional Information
- Minimum Credit Score: Not disclosed
- Early Payoff Penalty: None
- Late Fee: Up to $10
- Origination Fee: 1.85% to 9.99%
Best for Imperfect Credit
LendingPoint
Vault Verified
Why we chose it: LendingPoint can be a good option for consumers with imperfect credit since its approval process looks at other factors beyond your credit score, including your employment situation and income. This lender lets applicants access between $2,000 and $36,500 in loan funds and pay these amounts back over 24 to 72 months.
Pros
- Holistic approval process that looks beyond credit
- Competitive interest rates
- Get prequalified online
Cons
- No joint or co-signed loans
- Minimum income of $35,000 required
- Origination fee of up to 10% applies
Additional Information
- Minimum Credit Score: Not disclosed
- Early Payoff Penalty: None
- Late Fee: Up to $35
- Origination Fee: Up to 10%
Best Manufacturer Financing
Harley Davidson
Vault Verified
Why we chose it: You can also apply for motorcycle financing right at the source with a company like Harley Davidson, which extends special financing offers for eligible purchases that can change over time. Rates and terms vary based on ongoing promotions, but some loans come with rates as low as 6.39% and $0 down.
Pros
- Qualify for special financing promotions
- Convenient, on-the-spot financing
- Flexible repayment terms
Cons
- Minimal transparency about loan options
- Minimal transparency about eligibility criteria
- Can only be used for Harley Davidson bikes
Additional Information
- Minimum Credit Score: Not disclosed
- Early Payoff Penalty: Not disclosed
- Late Fee: Not disclosed
- Origination Fee: Not disclosed
Best for Fast Funding
Avant
on Credible’s website
Why we chose it: Avant made our ranking due to its fast decision-making process and loan funding as soon as the next business day. This lender lets applicants borrow $2,000 to $35,000 for a motorcycle purchase and other goals and repay over 12 to 60 months.
Pros
- Get a loan decision in minutes
- Available for fair credit or better
- Get prequalified online
Cons
- Less competitive interest rates
- Administration fee can apply
- Smaller loan amounts
Additional Information
- Minimum Credit Score: 580
- Early Payoff Penalty: None
- Late Fee: $15
- Origination Fee: Administration fee of up to 4.75%
Best for No Minimum Credit Score
Upstart
on Credible’s website
Why we chose it: Upstart offers motorcycle loans for consumers with credit scores as low as 300, which is the lowest possible credit score someone can have. Borrowers can access $1,000 to $50,000 in funding with repayment terms from 36 to 60 months.
Pros
- No minimum credit score requirement
- Get prequalified online
- Competitive interest rates
Cons
- Only two repayment options (36 or 60 months)
- Origination fee up to 12%
- High interest rates for imperfect credit
Additional Information
- Minimum Credit Score: 300
- Early Payoff Penalty: None
- Late Fee: 5% of monthly past due amount or $15
- Origination Fee: Up to 12%
What Is a Motorcycle Loan?
A motorcycle loan is a type of installment loan used to finance the purchase of a standard motorcycle, cruiser, sport bike, adventure bike or even a moped. These loans are available through motorcycle dealerships that use the bike itself as collateral for the loan, yet there are plenty of reasons to apply for an unsecured motorcycle loan instead.
Personal loans are popular for motorcycles as well as debt consolidation, home improvements, vacations, weddings and other loan purposes—and for good reason. Not only do personal installment loans come with fixed interest rates and set monthly payments, but they feature fixed repayment terms that let you agree to make monthly payments for a specific period of time upfront.
Unsecured personal loans don’t use the motorcycle you’re purchasing as collateral for the loan either, which means your bike won’t automatically be seized if you fail to keep up with payments. That said, not making payments on a motorcycle loan can still lead to other consequences, including damage to your credit score, late fees, interest accruing and more.
How Do Motorcycle Loans Work?
Individual motorcycle loans have their own eligibility requirements and processes for approvals, as you have probably seen across the lenders we profiled in this guide. Where some lenders require a minimum credit score of 600 or higher, others have less stringent requirements or no credit score requirement at all. Additional eligibility requirements that can apply include minimum income requirements, age requirements and residency requirements.
Loan amounts and repayment options also vary by lender, with some offering loans up to $100,000 and others limiting loan amounts to $35,000 or $40,000. Other differences between lenders include repayment terms, or how long you have to pay the motorcycle loan back, and fees that apply.
It’s easy to apply for motorcycle financing online before you even start shopping for a bike. Most lenders in this industry offer an online loan application and approval process, and some even let you “check your rate” and gauge whether you can actually qualify before you move forward with an application.
If you apply for a motorcycle loan and get approved, you’ll typically get your loan funds deposited in your bank account within a few business days. After that, you can purchase the motorcycle you want from a dealership, a private seller or someone you know. From there, you’ll make motorcycle loan payments based on the payment amount and repayment term you agreed to.
Typical Characteristics of Motorcycle Loans
- Loan amounts: $1,000 to $100,000
- Repayment terms: 12 to 84 months
- Minimum credit score requirements: Varies by lender (can be as low as 300)
- Fees: Origination fees and late fees are common
- Interest rates: 6.40% to 35.99% depending on the lender
How To Choose the Best Motorcycle Loan
The best motorcycle loans highlighted in this guide are an excellent place to start your search, but you’ll still want to compare these lenders side by side. Here’s a rundown of the criteria that matters most when it comes to motorcycle loans.
Loan Amounts
One of the most important factors to consider is how much you plan to spend on a bike and how much you need to borrow. With loan companies offering different minimum and maximum loan amounts, knowing this ahead of time can help you narrow down your options.
Some lenders let you borrow as little as $1,000 or $2,000 and up to $35,000 or $40,000 for the bike you need, whereas others let you borrow a minimum of $5,000 all the way up to $100,000.
Repayment Terms
Also look at available repayment terms and keep in mind that your monthly payment will vary based on how long you have to pay back the money. If you’re looking for a motorcycle loan with the lowest possible monthly payment, you’ll want to consider lenders with the longest repayment terms available (typically up to 84 months).
Interest Rates
Look at lenders based on the interest rates they offer, and see if you can “check your rate” with a few to see where the interest rates you can qualify for fall. Remember that your monthly payment and total interest charges will vary based on the rate you can get and that you want the lowest possible interest rate you are eligible for.
Loan Fees
Also check for loan fees, and especially origination fees. These fees are automatically deducted from the loan amount you get upfront, meaning getting a $10,000 loan with a 5% origination fee would lead to you getting just $9,500 in loan funds but having to pay the full $10,000 back plus interest.
Other fees to watch out for include “administration fees,” late fees and prepayment penalties.
Eligibility Requirements
Finally, see if lenders you’re considering disclose their eligibility requirements, including minimum credit score or income requirements. Knowing these standards ahead of time can help you focus on lenders that might actually approve you for financing.
How To Get a Motorcycle Loan
Once you’re ready to apply for motorcycle financing, the following steps can help you get to the finish line.
- Step 1: Compare lenders. Take a close look at individual lenders to see which ones offer the loan amounts and repayment terms you prefer. Also compare lenders based on their interest rates and loan fees to avoid origination fees and other hidden fees if you can.
- Step 2: Check your rate. See which lenders will let you “check your rate” without a hard inquiry on your credit reports. This step can help you find out the rates you would have to pay if you get approved with different lenders, which makes it easier to compare and narrow down your options.
- Step 3: Apply for a loan. Pick the lender you want to move forward with and take steps to apply. You’ll need to submit personal and financial information including your income, employment history, and Social Security number (SSN).
- Step 4: Submit documentation. Be prepared to submit additional loan documents upon request, which may include pay stubs, tax returns, a copy of your driver’s license and more.
- Step 5: Get the financing you need. If you’re ultimately approved for motorcycle financing, you should see the loan funds show up in your account within a few business days (depending on the lender). If you apply directly with a dealership, the loan funds will be automatically diverted to the dealership to cover your motorcycle purchase instead.
Alternatives to Motorcycle Loans
The best motorcycle loans can be secured or unsecured personal loans, but other types of loans may also work just fine. Consider the other ways you can finance a motorcycle purchase and whether they make sense for you.
Banks and Credit Unions
If you have an existing relationship with a bank or credit union, you can always stop in to see about motorcycle loan rates and available loan options. You may qualify for a stellar deal if you have good credit and you already have a checking or savings account or other loans with a financial institution, but you won’t know unless you check.
Home Equity Loans
Home equity loans use the value of your home as collateral for the loan, and they also come with fixed interest rates, set monthly payments and repayment terms that won’t change. Note, however, you typically need to have at least 80% in home equity across first and second mortgages to qualify, so these loans won’t work for newer homeowners who don’t have a ton of home equity built up.
Home equity lines of credit
Home equity lines of credit (HELOCs) are similar to home equity loans in the fact they use your home as collateral, yet they come with variable rates and base your monthly payments on how much you borrow. That said, a HELOC can still be a good deal for consumers who aren’t sure how much they want to spend on a bike and only want to borrow what they need.
Like with home equity loans, however, the fact you’re using your home as collateral for the loan means it could be subject to foreclosure if you don’t make loan payments.
Credit Cards
You could also charge a motorcycle to a credit card if the dealer you’re buying from allows it and you have enough available credit on your card. That said, this alternative works best when you have a credit card that offers a 0% APR on purchases for a limited time. Also note that some credit cards offer a 0% APR, rewards for spending and a first-year welcome bonus, which can make buying a motorcycle an even better deal.
Just remember that 0% APR offers don’t last forever and the average credit card interest rate is on the high side (22.77% as of August 2023, according to Federal Reserve data).
Frequently Asked Questions
Can I Get a Motorcycle Loan With Bad Credit?
It’s possible to get a motorcycle loan with imperfect credit, but you won’t qualify for a loan from every lender. To get a motorcycle loan with bad credit, you’ll need to look for lenders with low minimum credit score requirements or no requirements.
As an example, Upstart offers personal loans to consumers with credit scores as low as 300. This doesn’t mean you’ll automatically be approved with bad credit, but it does give you a better shot at approval than you’ll have with other loan companies.
How Much Is the Average Motorcycle Payment?
The average motorcycle payment depends on the loan amount, interest rate and repayment term. Dallas Harley-Davidson, for example, says they frequently see monthly payments that fall between $100 and $1,000.
For a more specific estimate, consider someone who is borrowing $20,000 for a bike with an interest rate of 8% and a repayment term of 60 months. In this scenario, the motorcycle payment works out to $405.53.
Do You Need a Down Payment for a Motorcycle?
Unsecured personal loans for motorcycles won’t require you to make a down payment. Instead, these loans can offer the full amount of money you need for the purchase upfront, which you use to buy the bike you want. From there, you make monthly payments to the loan company based on the repayment schedule you agreed to upfront.
With dealership motorcycle financing, down payment requirements vary, and you may need to put down as much as 10%.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
