Motorbike finance for the open road

How does motorbike finance work?

Motorbike finance is a secured loan. The lender advances the purchase price, you repay it over an agreed term, and the bike serves as security. Terms are often shorter than for cars, particularly for older or high-performance bikes, and a deposit can strengthen the application.

Ownright Custom Finance arranges motorbike finance Australia-wide. Our director, Trevor Scott, has more than 40 years in finance, and we like nothing better than helping a rider get from a “maybe” to a set of keys.

What types of bike can be financed?

• Road bikes, sports bikes and cruisers
• Adventure and touring bikes
• Dirt bikes, enduro and motocross machines
• Scooters and commuter bikes
• Quads and side-by-sides
• Trikes and custom builds, depending on the lender

Who is motorbike finance for?

• Commuters swapping a car for a more economical ride
• Weekend riders buying their first road bike
• Experienced riders moving up to a bigger machine
• Farmers and rural workers who need quads or farm bikes
• Self-employed buyers without payslips

For work vehicles, our pages on tradie ute finance and car loans may suit better.

What do lenders look at?

Factor	What lenders often consider
The bike	Type, age, make, price, resale demand
Income	Wages, business income, pension or a mix
Credit history	Defaults, repayment behaviour, enquiries
Commitments	Existing loans, cards and living costs
Deposit	The amount you are putting in
Licence	Valid licence for the bike class

How does Ownright approach motorbike finance?

Bikes can fall between the cracks. Some lenders want nothing to do with them, while others have good policies for the right profile. Ownright matches the bike and the buyer to a lender that is comfortable with both, instead of sending the application to whoever happens to answer.

If a previous application has been declined, we ask what the reason was. Sometimes it is credit, sometimes the age of the bike, sometimes the way income was presented. Understanding the cause points us to a better path. No outcome is guaranteed, but a clear, honest application helps.

Apply online or call the Knoxfield head office on 03 7043 7233.

An illustrative example

Illustrative only: a nurse on casual shifts wants a three-year-old road bike for commuting between hospitals. Her hours vary, and a mainstream lender declines because her payslips fluctuate. She also wants to include riding gear in the loan.

Ownright would gather several months of payslips and bank statements to show an average, look at lenders that treat casual income more flexibly, and ask whether gear can be added to the invoice. A modest deposit might help. As always, approval depends on the lender and cannot be promised.

Mistakes to avoid

• Buying before the loan is confirmed
• Skipping a PPSR check on a private sale
• Forgetting insurance, which most lenders require
• Underestimating gear, registration and servicing
• Choosing a long term on an older bike
• Applying with several lenders in quick succession, which can leave several enquiries on your credit file

Documents to have ready

• Photo ID and motorcycle licence
• Recent payslips, or tax returns and BAS if self-employed
• Bank statements for the last few months
• Details of the bike: make, model, year, VIN and seller quote
• A list of existing debts
• Proof of address

Related options

If credit is a concern, see bad credit car loans and our bad credit car loan guide. For an unsecured alternative, look at personal loans.

How do lenders view bike type and age?

Lenders usually group motorbikes into categories, and each can be treated differently. Mainstream road bikes and commuter machines are generally the easiest to finance. High-performance sports bikes, custom builds and very old classics can be harder, because the lender worries about resale value and wear. Off-road bikes, quads and side-by-sides may sit in their own category, and some lenders will not touch them at all.

Age matters too. Many lenders set a maximum age at the end of the loan term, so an older bike may be limited to a shorter term. Matching the loan to the bike’s likely life avoids owing more than it is worth.

What costs come with owning a bike?

MoneySmart advises looking at the total cost of owning a vehicle, not only the repayment. For motorbikes that typically includes:

• Comprehensive insurance, which lenders usually require
• Registration and compulsory third-party cover under your state or territory’s rules
• Servicing, tyres, chains and brakes, which can wear faster than on a car
• Riding gear, including helmet, jacket, gloves and boots
• Fuel, parking and storage
• Optional extras such as luggage, alarms and accessories

Putting a rough figure beside each helps you choose a loan amount and term that leave room for the rest of life.

How does buying at auction or privately work?

Auctions and private sales can deliver good value, but they need more care. Finance is normally arranged before you bid or commit, since you often need to pay quickly. Lenders may want to see the registration, VIN and an inspection, and a PPSR search helps confirm whether the bike is recorded as free from debt, stolen or written off.

If you plan to bid at an auction, it helps to have the finance position clear in advance, so you know your limit and do not get carried away.

What about learner and new riders?

First-time riders are sometimes surprised to find finance harder than expected, especially when they are young, have a thin credit file or are still on a learner or restricted licence. Lenders want to see a valid licence for the class of bike, stable income and a sensible choice of machine. A smaller, more affordable first bike often makes the application simpler and the repayments easier.

If you are new to credit, a modest deposit and a clear record of paying other bills on time can help. Ownright can talk through what lenders tend to expect, and whether an unsecured personal loan might be an easier route for a lower-priced bike.

Can you refinance or trade up later?

Yes, though the numbers matter. If you owe more than the bike is worth, trading up becomes harder, since the shortfall has to be paid or rolled into the next loan. Keeping the term sensible and making extra repayments where possible helps you stay ahead of depreciation. Our car loan refinance page covers similar ground for vehicle loans.

Secured, unsecured or something in between?

Most motorbike finance is secured, meaning the bike is the collateral, and that usually makes it easier to arrange and gives the lender more comfort. An unsecured personal loan leaves the bike free of a lender’s interest, which some riders prefer, but lenders may be more cautious about the amount and the term since there is nothing behind the loan. The better choice depends on the bike, the price and your circumstances.

Feature	Secured bike loan	Unsecured personal loan
Security	The bike itself	None
Typical suitability	Mid to higher priced bikes	Lower priced or older bikes
Selling the bike	Lender’s interest must be cleared first	You can sell freely
Assessment focus	Borrower plus the machine	Mainly the borrower

What about novated leases, chattel mortgages and business use?

If the bike is used for business, such as courier work, delivery riding or farm work, the structure can change. A self-employed rider or a company may be able to use a commercial loan, and a chattel mortgage is one common structure for that. Our guide on the chattel mortgage explains how it works. Work use also affects how a lender looks at income, since the bike is helping earn the repayments. Ask your accountant how any tax treatment applies to you before you sign.

How do you compare two quotes properly?

Two offers can look similar while differing in the details that matter. When comparing, line up:

• The loan amount, and whether extras such as gear or accessories are included
• The term, and what that does to the total you will repay
• Any balloon or final payment
• Establishment and monthly account charges
• Early repayment conditions
• Insurance requirements, including whether you can choose your own insurer

Never judge an offer on the repayment alone. A lower repayment over a longer term on a bike that ages quickly can leave you owing more than the bike is worth for years.

Buying new, demo or second-hand

Dealers sell new and demonstrator bikes, and a lender will usually see these as simpler, because the price, age and condition are clear. Second-hand bikes from a dealer are also routine. Private sales add steps: confirming the seller owns the bike, checking the VIN against the registration and running a PPSR search to see whether money is owing on it. If something looks off, walk away before paying a deposit.

Riders with irregular income

Delivery riders, couriers, tradies and casual workers often ask whether their income counts. It usually does, when you can document it. Several months of bank statements, an income summary from the ATO via myGov and tax returns can show a pattern even without payslips. Self-employed riders can use returns, BAS and accountant letters. The aim is to give the lender the clearest picture of what comes in. For self-employed buyers who want a broader view, see self-employed car loans.

Learner-approved bikes and licence rules

State and territory road authorities set the rules on which bikes a learner or restricted rider may use, and in each place there is an approved list of learner-approved motorcycles. If you hold a learner or restricted licence, check your state’s road authority before choosing a bike, because a lender will want the bike to match the licence. Buying a machine you are not yet permitted to ride is an expensive mistake.

Ready to ride?

Get the finance sorted before the sale, not after. Start an application and Ownright will look at options that suit you and the bike.