Financing Motorcycles and Scooters

Motorcycle finance at a glance

Motorcycle loan options: which route to choose

Dedicated motorcycle loans

Several banks and credit unions offer motorcycle-specific secured loans, structured similarly to auto loans. The motorcycle is the collateral; the lender places a lien on the title until the loan is paid. These typically offer better rates than personal loans because the lender has the asset as security. Lightstream, Southeast Financial, and many credit unions are common sources in the US.

Manufacturer / dealer finance

For new motorcycles, captive finance arms (Harley-Davidson Financial Services, Honda Financial Services, BMW Motorrad Financial Services, etc.) offer promotional rates — sometimes as low as 0% APR on specific models for qualified buyers. These are among the best rates available for new bikes and worth checking before going to a bank.

Personal (unsecured) loans

For smaller amounts or older bikes that secured lenders won't touch, a personal loan from a bank or credit union is often the easiest route. There is no lien on the vehicle, which simplifies title transfer, and the loan can be approved in hours. Rates are typically higher than secured motorcycle loans (7–20% depending on credit), but the convenience and flexibility can outweigh the rate premium for smaller purchases.

Why motorcycle rates are higher than car rates

Motorcycles face several factors that increase lender risk:

1. Higher theft rates: motorcycles are stolen at significantly higher rates per vehicle than cars. In the US, NICB data consistently shows motorcycles among the highest-stolen vehicle categories.
2. Faster depreciation on most models: except for some Harley-Davidson, vintage, and premium sport bikes, motorcycles depreciate quickly — especially Japanese brands in their first few years.
3. Seasonal and discretionary nature: motorcycles are often considered a discretionary purchase, and lenders factor in the risk that owners may stop using and maintaining them in economic downturns.
4. Smaller loan amounts: smaller loans cost proportionally more to administer, which can push rates up.

Financing a used motorcycle

Used motorcycle finance faces the same restrictions as other used vehicle loans — age and mileage limits apply. Many secured lenders won't finance motorcycles over 10 years old or those with very high mileage (30,000–50,000 miles is a common upper limit for sportbikes). For older or high-mileage bikes, a personal loan is usually the more practical option.

Scooters and electric two-wheelers

Standard scooters up to 125cc are often available with dealer finance from manufacturers (Vespa, Honda, Yamaha financial services). Electric scooters and motorcycles are increasingly eligible for green loan discounts from credit unions, and in India, under certain state EV schemes, electric two-wheelers attract subsidised loan rates as low as 5–7% APR alongside purchase subsidies. In the UK, there is no specific scooter finance incentive, but the zero-rate VED and lower insurance costs improve overall affordability.

Documents and process

The application process mirrors a car loan: proof of identity, income, address, and the vehicle details (VIN or frame number, mileage, and a bill of sale or dealer purchase order). If you are buying privately, the lender will need to verify the bike is free of existing finance before approving the loan. A motorcycle-specific insurance proof (including comprehensive coverage) is required before loan disbursement on secured loans.