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5 of the Best Ways to Finance Your New Motorbike

  • Written by NewsServices.com

When it comes to motorcycles, not only do you have a choice of many different brands and styles, but there are also a number of ways you can purchase one. You could buy a motorbike from a dealership or second-hand from a private seller. Alternatively, you might want to think about getting a motorbike on finance, and if you choose to do so there are a number of different finance options available.

The most important thing to do is to make sure you've fully assessed all of your options, and consider the specific finance options available for different types of bikes. For example, if you've got your eye on a Harley Davidson motorcycle, it's a good idea to consider specific Harley Davidson financing options, like going through a dealer, in addition to banks and online car finance options.

Secured bike loan

A secured bike loan will use your bike as collateral against the loan. This means that you will be able to access a lower interest rate, but also means that if you are unable to meet your repayment obligations, your bike may be repossessed by the lender (so that they can recover their funds).


If you have a poor credit rating, you may be able to get your hands on a better-quality motorbike through leasing. This way of buying is particularly popular for those needing the latest model and the maximum possible performance. However, you will require adequate insurance cover that is both comprehensive and suitable for motorcycles.

Unsecured bike loan

With an unsecured bike loan, your bike won't be used as security on the loan. This means that because your lender doesn't have as much security on the loan, you are likely to end up paying a higher interest rate. However, this also means that your lender won’t be able to immediately repossess your bike if you default on your loan (though you may face legal action down the road).

Hire Purchase

Hiring the bike is just like hiring anything else; you pay for use of something instead of actually owning it. This option is often referred to as 'hire purchase' or simply 'HP'. Hire Purchases are typically best suited to drivers who are looking to purchase a bike for commercial use.

Buying it outright

Finally, if you have the cash on hand to do so, buying a bike outright will always end up being the most efficient and long-term cheapest way to buy a motorcycle.

You might be wondering which option is best for you. Well, it's important to assess your needs and aspirations as a motorcycle owner and also look at the amount of money you have available before making any decision about finance.

However, having said that, there are some definite advantages of taking out a motorbike loan such as:

  • * Financing can help those with bad credit or no credit history to get their hands on a better quality bike than they otherwise would be able to

  • * A motorbike loan allows for greater flexibility in terms of repayment lengths and amounts (although make sure you understand exactly what this means and how much interest will be added)

  • * Motorcycles tend to depreciate rapidly; financing over 3 years actually reduces the overall cost of the bike


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