How to Finance a Second-Hand Motorcyle

Buying a used motorcycle can be a great investment. With a second-hand motorcycle, you’ll get all the benefits of motorcycle ownership for a fraction of the price. A lot of buyers will be happy to know that they can also use a loan to finance their motorcycle purchase.

Getting a motorcycle loan can be a challenge if you’re not familiar with the process. To help you out, we’ve outlined important things you need to know when financing a second-hand bike:

Can I use a motorcycle loan at a dealership or for a private sale?

You can use a motorcycle loan when buying from a dealership or for a private sale. This means you’ll have more used motorcycle options to choose from. You’re not limited to just what a single dealership has in stock, and can see what’s in the second-hand bike markets online. With more freedom, you’ll have a better chance at getting a good deal on your used motorcycle.

Using a motorcycle loan to finance your used motorbike purchase is easier than you think. Once you get approved for the bike finance, the lender will handle the transfer of funds to the lender or private seller. It works similarly to any other vehicle finance.

What are the requirements for a used motorcycle loan?

To be eligible for a motorcycle loan, you need to be an Australian citizen (or permanent resident), be at least 18 years of age, and have a regular income.

The type of documents needed can differ per lender, however, common requirements include the following:

Identification: You need to provide a driver's licence, passport, or other government-issued or official identification.

Financial documents: This includes proof of income, bank statements, tax slips, and assets and liabilities.

Good credit score and history: Borrowers with healthy credit scores and a good credit history have a better chance at loan approval. However, some lenders offer motorcycle loans for those with bad credit.

Information on the motorcycle: Some lenders may have a limit on the age of the used motorcycle you can purchase using a loan.

Usually, you don’t have to provide a down payment or deposit when taking out a motorcycle loan. However, if you’re able to afford it, providing one can be a wise choice as it can lower the total cost of your used motorcycle loan.

What should I look for in a used motorcycle loan?

Ideally, you want a motorcycle loan with competitive rates and useful loan features. To get the best deal, it’s a good idea to shop around and see what’s available in the market. Be wary of loans boasting little to zero interest rates as they’re often misleading and are hiding huge fees and restrictive loan terms.

If you’re not keen on fielding multiple lenders or going through dozens of motorcycle loans, you could also use a finance broker like Aussie Bike Loans. Finance brokers can help you find a loan suited to your needs more quickly.

How do I apply for a used motorcycle loan?

Each lender and finance broker has their own loan application process. Usually, you’ll be asked to provide identification, financial documents, and other pertinent information together with an application form.

At Aussie Bike Loans, you can expect a quick and streamlined process. No weeks’ long waits for approval or complicated application requirements, or talking to various lenders all at once. We do all the heavy lifting for you.

Here’s how you can apply for a used motorcycle finance at Aussie Bike Loans:

Speak with our finance brokers. You can call our expert brokers to discuss your loan needs, and they’ll help you find the best used motorcycle that fits your financial situation. You can also get a quote online.

Submit requirements online. All you need to do is send the required documents online. You don’t have to take time out of your busy day to visit an in-person office. Simply provide documents such as official identification, proof of income or employment, assets and liabilities including any existing loans or debt.

Wait for approval. Once you’ve submitted all the requirements, we’ll review them and get in touch with you! Motorcycle loans are usually approved within 48 hours, provided that all required documents are submitted promptly.

Choose a used motorcycle loan. We’ll search through our expansive network of lenders to find the best motorcycle loan for you. We’ll send you a few options to review and you can choose one that you think suits your needs best.

Settle your loan. When you’ve chosen a loan and found a used motorcycle to buy, all that’s left is to settle everything and finalise your motorcycle purchase.