There are two types of bike finance available for personal use; secured or unsecured loans (see descriptions below).
For either secured or unsecured, Aussie Bike Loans will organise the amount you require which is repaid over a period of up to 5 years.
Scheduled fortnightly or monthly payments can be made by direct debit, cheque, BPAY, internet banking, direct payroll, or cash where applicable.
A deposit is not required in most cases, but it will assist in your approval chances should you have a borderline application.
The loan is daily reducible, which means the interest is calculated on the unpaid balance daily, just like a home loan. Extra or additional payments will reduce the outstanding balance and therefore reduce the interest charges. This can have the effect of shortening the term and reduce the overall cost of the loan. And with Aussie Bike Loans, there may be an option to have the low interest rate fixed for the term of your loan, so it won’t go up in a rising market.
Although it’s a personal use loan, depreciation and interest charges could be tax effective claims if the bike is for business or work related usage (view our business bike loan options).
A variation known as the balloon payment or residual option is also slowly growing in popularity. By setting a larger balloon payment for the end of the term, which can vary according to circumstances, you can reduce your monthly payments to better balance your budget. At the end of the term, you can either pay out the full amount in one hit or re-finance the balloon amount and continue paying off the bike over a new loan period.
Most personal use loans for cars, boats, and bikes in Australia are secured loans.
As an individual you’re borrowing money to purchase a tangible item – a motorcycle – which will be used as security for the loan. When you trade-in or sell you must then payout your loan, and get a new loan if you require money to buy something else.
Secured bike loans generally have a lower interest rate than unsecured loans.
This is a rather versatile loan as it can be used for nearly any purpose including debt consolidation, holidays, weddings, or even cars and bikes that do not qualify for the secured loans above. There is no security required for this type of loan, which means interest rates are slightly higher than secured loans.
Note: This product is not available in some areas.
Don't be fooled by 0% bike loans
It may cost you more than expected. Read the facts about the dangers of getting locked in to a 0% loan. Read more