FAQ

The amount of a loan can affect the motorbike loan interest rate offer. When assessing applications, lenders look at the amount of the loan compared with the price or value of the machine. This is the loan-to-value ratio. Lenders will be want assurance that should the borrower default on the loan, the value of the bike they can recoup through repossession and sale, will be in line with the outstanding loan payments. Making a downpayment to reduce the loan required, may contribute to a better rate.

Used bike loan rates are not usually the same as new bike loan rates. Lenders offer better rates on new goods than used goods. The age and condition of the bike will be assessed by lenders when assessing the application and preparing a loan and rate offer.

The specific motorcycle model does not directly affect the bike loan interest rate. All types of motorcycles can be financed with the same loans and attract the same rate. The exception being used models which attract typically a higher rate than new models.

Secured motorbike loans for new machines will typically attract the best interest rates, compared with unsecured loans and finance for second-hand bikes. The specifics of the application and the lender will determine the rate offer.

A motorbike loan Comparison Rate is the interest rate calculated on a specific loan amount and term based on the lender’s advertised rate and when some lender fees and charges have been included. Displaying a Comparison Rate is required by all lenders offering consumer finance, under ASIC Consumer Credit Laws.

A Comparison Rate is different from an advertised rate because the Comparison Rate includes some lender fees and charges.

Motorbike loan rates may be fixed or variable, depending on the type of loan and the lender. Most secured format loans have a fixed interest rate. Unsecured loans may have a fixed or a variable rate.

To get the lowest bike loan interest rates, applicants should have a good credit score and strong financials. Lowering the size of the loan compared with the price of the bike may result in a better rate offer. Rates can be different from different lenders. Buyers may use a broker to find their lowest rate from a large number of lenders.

A motorbike loan interest rate will not change if it is a fixed rate loan. Loans for motorbikes may be arranged with a fixed or a variable interest rate. A fixed rate remains unchanged over the full fixed term of the loan. A variable interest rate may change if the lender alters their rate for that lending product. Rate changes typically occur when the RBA announces a change to the cash rate.

The interest rate on a motorcycle loan will depend on the lender, the strength of the individual application, the lending product, and the amount of the loan in relation to the price of the machine. Lender rates vary across the market. Secured loans attract different rates to unsecured loans. Applicants with strong financials and good credit scores are offered better rates than less than good credit score applicants. Applications are individually assessed by lenders to determine the rate they will offer.