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How do motorbike loans work?
Motorbike loans are a pretty simple product, working in much the same way as a car loan. Here are the key points you’ll need to know:
- Loans are secured by your motorbike, meaning it’ll have to satisfy lender criteria related to age, condition and model
- Borrow from $5,001 up to 100% of its purchase price (depending on how much you’re eligible to borrow)
- Repay the loan over a term between one and seven years, with weekly, fortnightly or monthly repayments
- Make repayments with interest and fees (certain lenders may waive some or all fees) until your loan is repaid in full
- Pay as large a deposit on the purchase as you like, with some lenders also offering residual or balloon payments as an option
How do I compare motorbike loans?
There are plenty of ways to go about comparing your motorbike loan options before you sign your contract. Here’s what you should be looking out for:
- Interest rate: look for the lowest rate available for your situation. The lower your rate, the less you’ll pay overall.
- Fees: additional charges like establishment and ongoing fees can also appear, so look for lenders that charge less in the way of fees.
- Comparison rate: this combines your interest and non-conditional fees into a single rate, so it gives a more accurate indication of your loan’s cost.
- Available loan amounts: different lenders have different minimum and maximum loan amounts, so make sure you can borrow what you’re after.
- Available loan terms: similarly, not all lenders will offer the full range of one to seven years for terms. Look for those who can support your preferred term.
- Repayment flexibility: if you want the freedom to repay your loan ahead of schedule, some lenders may allow you to do this for free (most will charge fees, though).
- Eligibility criteria: of course, you’ll need to make sure you’re eligible for the loan you’re after. There’s no use applying for something you can’t be approved for.
- Bike eligibility: it isn’t just about you, though; your bike will have to meet criteria set by your lender, primarily related to its age and condition.
Fortunately, when you apply with Savvy, we’ll handle the heavy lifting for you when it comes to comparing your bike loan options. We’ll consider offers from our wide range of lending partners to help secure you the best deal available for your profile!
What types of motorbike can I finance?
Savvy can help you finance a wide range of different types of motorcycle, including the following:
- Adventure bikes
- Cruiser motorbikes
- Off-road motorbikes
- Quad bikes
- Scooters
- Sport motorbikes
- Touring motorbikes
Speak with one of our friendly consultants to discuss your finance options for your chosen bike to kick your application into gear!
What factors impact my borrowing power?
There are plenty of factors that can impact the amount you’re eligible to borrow, including the following:
- Your income and expenses
- Your job stability
- Your credit score
- Your record repaying similar loans in the past
- Your assets, including savings
- Your liabilities (other outstanding loans)
- Your dependants
What other costs will I have to budget for when buying a motorbike?
On top of the purchase price of the bike and your loan’s interest and fees, you’ll need to consider a variety of other costs, including:
- Comprehensive insurance
- Registration
- Stamp or motor vehicle duty
- Maintenance costs
- Fuel costs
Why apply for a leisure loan with Savvy?
WHAT OUR CUSTOMERS SAY ABOUT THEIR FINANCE EXPERIENCE
Savvy is rated 4.9 for customer satisfaction by 6323 customers.
How to reduce your motorbike loan interest rate
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Maintain a strong credit score
Perhaps the most effective way to help you lock in a low rate is to have a good credit score. This is one of the biggest factors when it comes to determining approval and interest on your loan. Continuing to pay your debts on time and lowering your available credit limits can keep your score strong and continue to build it up.
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Have a similar loan in your history
A good credit score is a strong indicator of your reliability as a borrower, but having a history of successfully repaying a similar loan in the past is just as valuable from a lender’s perspective. They’ll want to be as certain as possible that they can trust you with the responsibility, so pointing to a past loan could help your lender’s confidence in you.
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Choose a new or near-new bike
While they may cost more to purchase, bikes that are brand-new or only one or two years old are more likely to be rewarded with low interest rates. Although the difference in rate may be small compared to an older used bike, when we’re talking about loans worth tens of thousands, even small discounts can be meaningful in the long run.
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Have savings in the bank
Because repaying a loan requires financial discipline, lenders will look in all the areas they can to determine whether you can take on the responsibility. One of the factors they look at is the savings that you’ve built up in your account. Not only are they a valuable asset, they show that you’re responsible when it comes to your cash.
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Be asset-backed
One of the most effective ways to net yourself a lower interest rate is by showing that you’re asset-backed. In most cases, this means you own a house, either outright or with a mortgage still under your belt. Lenders like borrowers who own property, so you can expect to pay less than someone with the same profile but no property ownership.
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Compare your options with Savvy
Perhaps the simplest way to save on your loan is to compare as many options as you can. With our vast panel of reputable Australian lenders, we’ll run your application through our high-tech system to match you with the cheapest and best lender for your needs.
How to apply for your motorbike loan with Savvy
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Fill out our simple online application form
Start by telling us about what motorbike you’re after and some information about yourself, like your employment, income, credit score and more.
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Supply any required documents
In some cases, if we need more information to verify parts of your application (such as your income), we may ask for a few more documents. You can submit these through our portal.
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Speak about your finance options with us
From there, your consultant will compare the best offers available for your profile. We’ll give you a call and, if you’re happy with the top choice, we can take the next step.
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Have your formal application prepared and receive approval
Your consultant will put together your application to meet your lender’s specifications and submit it to them. Approval can come as soon as one business day after.
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Signed, sealed and your motorbike delivered
After approval, we’ll send you all the forms to sign, which you can do electronically via our portal. We’ll handle the settlement of the bike and, once that’s done, it’s all yours!
Motorbike loan eligibility and documentation
Eligibility
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Age
You must be at least 18 years of age
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Residency
You must be an Australian citizen or permanent resident (or, in some cases, an eligible visa holder)
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Income
You must be earning a stable income which is enough to comfortably support your repayments (this can start from as little as $20,000 to $26,000 per year)
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Employment
You must be employed and earning a consistent income from your job
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Credit score
You must meet your lender’s requirements related to your credit score
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Motorbike
Your motorbike must meet your lender’s requirements related to type, age and condition
Documents
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Driver's licence
Front and back (or another form of government-issued ID)
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Payslips
Your last two consecutive payslips (or your last tax return if you're self-employed)
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Savvy forms
Your Savvy application, consent form and credit guide (supplied by your consultant)
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Motorbike details
Information about your motorbike, such as its model and age, is handy to have
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Bank statements
90 days of bank statements may be requested, but not always
