Motorcycle Loan Calculator

Motorcycle loans are secured installment loans where the motorcycle serves as collateral. You borrow money to purchase the bike and repay it over a fixed term (typically 24-84 months) with regular monthly payments that include principal and interest. The lender holds the title until the loan is fully paid off. If you default, the lender can repossess the motorcycle.

Most motorcycle lenders require a down payment of 10-20% of the purchase price. New motorcycles often qualify for lower down payment requirements (10-15%), while used bikes may require 15-20% or more. A larger down payment reduces your loan amount, lowers monthly payments, and may help you secure a better interest rate.

Motorcycle loan interest rates typically range from 3% to 15%, depending on your credit score, loan amount, loan term, and whether the bike is new or used. Borrowers with excellent credit (750+) can secure rates as low as 3-5%, while those with fair credit may see rates of 8-12% or higher. New motorcycles generally qualify for lower rates than used bikes.

Motorcycle loan terms typically range from 24 to 84 months (2 to 7 years). The most common terms are 36, 48, and 60 months. Longer terms result in lower monthly payments but significantly more interest paid over time. Shorter terms have higher monthly payments but lower total interest costs and help you build equity faster.

Yes, most motorcycle dealers accept trade-ins, and the trade-in value is applied toward your down payment and purchase price. This reduces the amount you need to finance. To get the best trade-in value, research your bike's worth using guides like NADA or Kelley Blue Book, and get quotes from multiple dealers before committing.

Most lenders require a minimum credit score of 600-650 for motorcycle loan approval, though some may approve scores as low as 550 with higher interest rates. Scores of 700+ typically qualify for competitive rates, while scores above 750 can access the best rates available. If your score is lower, consider a co-signer or larger down payment.

Compare both options. Motorcycle dealers often offer promotional financing (like 0% APR) for new bikes, especially during sales events, but rates may be higher for used bikes or those with lower credit. Banks, credit unions, and online lenders may offer more competitive rates and flexible terms. Get pre-approved from multiple sources to negotiate the best deal.

Beyond your monthly loan payment, budget for motorcycle insurance ($200-$2,000+ annually depending on bike type and coverage), registration and licensing fees, maintenance and repairs (tires, oil changes, chain maintenance), riding gear (helmet, jacket, gloves, boots), and fuel. Sport bikes and high-performance motorcycles typically cost more to insure and maintain.

Most motorcycle loans allow early payoff without penalties, but always verify this with your lender before signing. Paying off your loan early saves interest and frees up monthly cash flow. However, some lenders charge prepayment penalties, so check your loan agreement. If there are no penalties, making extra payments toward principal can significantly reduce total interest paid.

Missing payments damages your credit score and can result in late fees, increased interest rates, and ultimately repossession of your motorcycle. If you're struggling financially, contact your lender immediately to discuss hardship options like payment deferment or loan modification. Selling the motorcycle voluntarily is preferable to repossession, which severely damages your credit.

Generally, motorcycle loan interest is not tax deductible for personal use motorcycles. However, if you use the motorcycle for business purposes, you may be able to deduct a portion of the interest and other expenses. Consult a tax professional to determine if any of your motorcycle expenses qualify for deductions based on your specific situation.

Used motorcycles cost less upfront and depreciate slower than new bikes, but may come with higher interest rates and potential maintenance costs. New motorcycles offer warranties, the latest technology, and often promotional financing rates, but depreciate significantly in the first few years. Consider your budget, mechanical skills, and how long you plan to keep the bike when deciding.