New and Used Motorcycle Loans

Motorcycle Loans
Motorcycle Loans

New and Used Motorcycle Loans. When considering financing for a motorcycle, whether new or used, there are several options and factors to be aware of. Here is an overview of new and used motorcycle loans:

New and Used Motorcycle Loans

Loan Terms and Rates:

  1. Interest Rates:
    • New Motorcycles: Typically have lower interest rates as they are considered less risky for lenders.
    • Used Motorcycles: May have higher interest rates due to their decreased value and higher risk.
  2. Loan Terms:
    • The loan term for new motorcycles can be longer, while used motorcycles might have shorter loan terms.
  3. Loan Amount:
    • The loan amount for a new motorcycle will generally be higher than for a used one.

Where to Obtain a Loan:

  1. Banks and Credit Unions:
    • Both types of financial institutions offer motorcycle loans with varying terms and interest rates.
  2. Online Lenders:
    • Online lending platforms may provide competitive rates and terms for motorcycle loans.
  3. Dealership Financing:
    • Dealerships often offer financing options for both new and used motorcycles, sometimes with promotional rates.
  4. Manufacturer Financing:
    • Some motorcycle manufacturers offer financing for new motorcycles, often with competitive interest rates.


  • It’s advisable to get pre-approved for a loan to know exactly how much you can afford before shopping for a motorcycle.

Credit Score Impact:

  • Your credit score will significantly impact the interest rate you’re offered. A higher credit score can result in lower interest rates.

Additional Costs:

  • Don’t forget to factor in additional costs such as insurance, maintenance, and registration when calculating the total cost of owning a motorcycle.

Comparison Shopping:

  • It’s crucial to shop around and compare different loan offers to ensure you’re getting the best deal.

Other Financing Options:

  • If traditional financing options don’t suit your needs, you might consider alternatives like personal loans or peer-to-peer lending.


When looking to finance a new or used motorcycle, it’s essential to compare different lenders and consider the total cost of ownership. Make sure to check your credit score, obtain pre-approval, and factor in all associated costs to make an informed decision.

New and Used Motorcycle Loans FAQs

Certainly! Here are some frequently asked questions (FAQs) regarding new and used motorcycle loans, along with their answers:

1. How do motorcycle loans work?

  • Motorcycle loans work similarly to car loans, where a lender provides the funds to purchase a motorcycle, and the borrower pays back the loan amount plus interest over a specified term. Motorcycle loans can be secured or unsecured, with secured loans requiring collateral, usually the motorcycle itself​1​.

2. What are the average costs of new and used motorcycles?

  • The average price of a new motorcycle is about $16,000, while lightly used motorcycles are usually in the $3,000 – $6,000 range​2​.

3. What are the typical interest rates for motorcycle loans?

  • The interest rates for motorcycle loans can vary based on the lender, your credit score, and whether the motorcycle is new or used. Some examples include rates as low as 9.24% APR as offered by Mountain America Credit Union​3​, or starting at 10.49% APR as provided by Affinity Federal Credit Union​4​.

4. Can I purchase a motorcycle from a private party with a loan?

  • Yes, some lenders allow for the purchase of motorcycles from private parties or dealers. For instance, Patelco Credit Union mentions the possibility of purchasing a new or used motorcycle from a dealer or a private party​5​.

5. What factors should I consider when shopping for a motorcycle loan?

  • It’s crucial to compare rates and terms from multiple lenders, consider the total cost of ownership including additional costs like insurance, maintenance, and registration, and understand the length of the loan term and monthly payment amounts. It’s also advisable to get pre-approved for a loan to know how much you can afford.

6. Is it easier to get a loan for a new or used motorcycle?

  • It might be easier to obtain financing for a new motorcycle as they are considered less risky for lenders due to their known condition and higher value. However, some credit unions and other lenders do offer loans for used motorcycles as well.

7. Can I refinance a motorcycle loan?

  • Yes, refinancing is an option for motorcycle loans if you find a lender offering a lower interest rate or if you want to change the loan term. Some institutions like Patelco Credit Union mention the option to refinance and save on a motorcycle loan​5​.

8. Do all banks offer motorcycle loans?

  • Not all banks offer motorcycle loans. Some financial institutions, especially credit unions, may have specific loans for motorcycles​4​.

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