Motorcycle Loans: Who Lends, What It Costs, What to Check

In short

Most motorcycle loans are secured installment loans: the lender holds a lien on the bike's title until you pay it off, just as with a car. Credit unions, banks, online lenders and the finance arms of motorcycle makers all lend, and dealers can arrange financing from any of them. The national rate averages we use cover cars, not motorcycles, so get quotes from at least two lenders. As an example, $12,000 at 9% APR costs $298.62 a month over 48 months. Ask for the out-the-door price first, because freight, setup and add-ons can raise the amount you finance.

Loan type: Secured by the bike
Main lenders: Credit unions, banks
Example payment: $298.62 a month
Insurance: Lender sets minimums

Where to get a motorcycle loan

Credit unions

Many list motorcycle or powersports loans next to car loans, with rates by credit tier. See credit union car loans.

Banks and online lenders

Some finance motorcycles as a vehicle loan; others offer only an unsecured personal loan for a bike.

Manufacturer finance arms

Some motorcycle makers have their own lenders, which may run promotional rates on new models through their dealers.

Dealer-arranged financing

The dealer sends your application to one or more lenders and may add a markup to the rate. See how dealer financing works.

A preapproval from your own bank or credit union gives you a rate to compare with the dealer's. The guide to getting preapproved explains the difference between a prequalification and a firm offer.

Secured loan or personal loan

A secured motorcycle loan uses the bike as collateral. Because the lender can take it back if you stop paying, secured loans often cost less than unsecured ones for the same borrower. In exchange, you cannot sell the bike or clear the title until the loan is paid, and the lender sets insurance requirements.

An unsecured personal loan puts no lien on the bike, which can help for an older or inexpensive motorcycle that some lenders will not finance as collateral. The rate depends heavily on your credit, and missing payments still damages your credit and can lead to collection. Our sister site Lendmira covers personal loans in depth.

What a motorcycle loan costs

Your credit history drives the price, as it does for cars. For comparison, Experian's second-quarter 2026 figures put the average used-car loan APR at about 6.3% for scores above 780, 8.8% from 661 to 780 and 13.9% from 601 to 660. Those numbers describe car loans, not motorcycle loans, and individual lenders may price bikes higher or lower, so use them only as a rough check on any quote.

Credit union rate sheets show how wide the range is. One credit union's motorcycle rates, effective April 1, 2026, ran from 6.99% to 18.00% APR on new bikes and from 7.49% to 18.00% on used ones for terms up to 60 months, depending on the borrower's credit score. It lends up to 100% of the sticker price on a new bike and up to 100% of a pricing guide's retail value on a used one, with lower limits for weaker credit, and it charges no penalty for paying early. Other lenders set different limits, so ask each one for its rate range, loan-to-value limit and longest term.

Example: $12,000 financed at 9% APR (standard loan formula, rounded to the cent)
Term	Monthly payment	Total interest
48 months	$298.62	$2,333.76
60 months	$249.10	$2,946.00

The longer term lowers the payment by about $50 and adds $612.24 in interest. Motorcycles also lose value quickly in the first years, so a long term with little down can leave you owing more than the bike is worth. Compare terms for your own numbers with the loan term comparison or the payment calculator.

What the dealer adds to the price

The advertised price of a new motorcycle often leaves out charges that appear on the buyer's order. Ask for one out-the-door figure in writing before you discuss financing, and check each line.

Freight and setup: charges for shipping the bike and preparing it for the road.
Documentation fee: some states cap it; each state page lists the rule where one exists.
Sales tax, title and registration: set by your state.
Optional products: service contracts, GAP, tire and wheel coverage or theft protection. You can decline them, and financing them adds interest.

Insurance and the loan contract

Your state sets the minimum liability coverage to ride legally. A lender usually adds its own requirement: physical damage coverage, often comprehensive and collision, with the lender named as loss payee, for as long as the loan lasts. Get an insurance quote before you sign, because the premium is part of what the bike costs you each month.

If you let required coverage lapse, the contract may let the lender buy coverage for you and add the cost to your balance, and that coverage usually protects the lender rather than you. A lapse can also count as a default under some contracts.

Steps to finance a motorcycle

Check your credit reports at AnnualCreditReport.com and fix errors before you apply.
Set a budget that includes insurance, gear and maintenance, not only the loan payment.
Get a quote from a credit union or bank, then let the dealer try to beat it.
Get the out-the-door price in writing and compare offers by APR, finance charge and total of payments.
Read the contract before you sign, and remove any product you did not agree to.

Questions people ask

Is it harder to get a motorcycle loan than a car loan?

Not necessarily, but fewer lenders offer them and some limit the age or type of bike they will finance. Credit unions and makers' finance arms are common starting points.

Can I finance a used motorcycle from a private seller?

Some credit unions and banks do. The lender usually pays the seller and records its lien on the title; ask before you shop.

Does the new-car loan interest deduction cover motorcycles?

It can. The final IRS rules list motorcycles among qualifying vehicles, as long as the bike is new, had its final assembly in the United States and has a gross vehicle weight rating under 14,000 pounds. Income limits and the $10,000 yearly cap apply; ask a tax adviser about your return.

How long can a motorcycle loan be?

Lenders set their own limits; one credit union we checked offers up to 84 months, with longer terms only on large loans. A shorter term costs less in total interest and keeps the balance closer to the bike's value.

Sources

Facts on this page were checked against these sources on October 26, 2026. Rate averages are for car loans; ask each lender for its motorcycle rates.

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