A motorbike loan can help fund a motorcycle without requiring you to pay the entire purchase price upfront. Motorcycle finance in New Zealand can potentially be used for new or used bikes and, depending on the lender, purchases through a dealer or private seller. The interest rate, deposit, loan term, security, fees and the bike itself can all affect the finance available and what you ultimately pay.
Key takeaways
- ✓Motorbike finance can potentially be used for new and used motorcycles.
- ✓Dealer and private-sale motorcycle purchases may both be financeable depending on the lender.
- ✓Motorbike finance can be secured or unsecured depending on the lender and loan structure.
- ✓Credit history, financial circumstances, security, loan amount and term can influence the finance available.
- ✓A deposit or trade-in can reduce the amount you need to borrow.
- ✓Budget for insurance, registration, fuel, tyres, servicing and riding equipment as well as the loan repayment.
What is a motorbike loan?
A motorbike loan is finance used to purchase an eligible motorcycle. You borrow an agreed amount and repay the debt over a specified period, together with interest and any applicable fees. Depending on the loan, the motorcycle or another acceptable asset may be used as security.
A motorbike loan lets you spread the cost of an eligible motorcycle across scheduled repayments instead of paying the full purchase price upfront.
How does motorcycle finance work in NZ?
You first determine which motorcycle you want to purchase and how much finance you require after allowing for any deposit or trade-in. A lender assesses the application and, if approved and the credit agreement is completed, the purchase is funded according to the finance arrangement. You then repay the loan over the agreed term.
What types of motorbikes can you finance?
Motorcycle-finance criteria vary between lenders. New and used motorcycles may potentially be eligible, while requirements around the bike's age, value, condition and purchase method can differ.
| Motorbike purchase | What to consider |
|---|---|
| New motorbike | Purchase price, deposit, finance term and total ownership cost |
| Used motorbike | Age, condition, value and suitability for the proposed finance |
| Dealer purchase | Compare the finance available as well as the motorcycle price |
| Private purchase | Ownership and security checks may be required |
What do lenders consider for a motorbike loan?
A lender can assess both the borrower and, for some secured loans, the motorcycle being purchased. The exact criteria vary between lenders.
| Factor | Why it can matter |
|---|---|
| Income and expenses | Help determine whether the proposed repayments are affordable |
| Existing debts | Other financial commitments can affect the application |
| Credit history | Shows how previous credit has been managed |
| Amount financed | Determines the size of the new credit commitment |
| Motorbike | Age and value can matter when the bike is used as security |
| Loan term | Changes the repayment and how long the debt remains |
Secured vs unsecured motorbike finance
A secured motorbike loan uses an acceptable asset as security for the debt. Depending on the lender, this may be the motorcycle being purchased. Unsecured finance does not require a specified asset to secure the debt.
If the motorcycle secures the loan, understand the lender's rights over the secured asset before accepting the finance.
| Feature | Secured finance | Unsecured finance |
|---|---|---|
| Specified security | Yes | No |
| Motorbike may secure loan | Potentially | No specified secured asset |
| Interest rate | Can be lower | Can be higher |
| Actual terms | Depend on lender and application | Depend on lender and application |
What are motorbike loan interest rates in NZ?
There is no single motorcycle-finance interest rate that applies to every New Zealand borrower. Rates can vary between lenders and applicants according to the credit assessment, loan structure, security and other circumstances.
An advertised starting rate should not be treated as a guaranteed motorbike loan rate. Compare the actual rate offered for your application.
Do you need a deposit for a motorbike loan?
Not every motorcycle-finance application necessarily requires the same deposit. Requirements depend on the lender and application. Contributing a deposit reduces the portion of the purchase price that needs to be financed.
A deposit reduces the amount you need to finance, but there is no universal deposit percentage that applies to every NZ motorbike loan.
| Motorbike price | Deposit | Amount to finance |
|---|---|---|
| $20,000 | $0 | $20,000 |
| $20,000 | $2,000 | $18,000 |
| $20,000 | $4,000 | $16,000 |
| $20,000 | $6,000 | $14,000 |
Can you trade in a motorbike that still has finance?
Potentially. If finance remains on your existing motorcycle, compare its trade-in value with the current settlement figure. For example, if the bike has a $10,000 trade-in value and $6,000 is required to settle the existing finance, approximately $4,000 of equity remains.
| Trade-in example | Amount |
|---|---|
| Trade-in value | $10,000 |
| Existing finance settlement | $6,000 |
| Remaining equity | $4,000 |
Can you finance a used motorbike?
Potentially. Used motorcycles can be financed depending on the lender, bike and application. If the motorcycle will secure the loan, its age, value and condition may be relevant to the lender. Finance approval does not guarantee the mechanical condition of the motorcycle.
For a used bike, consider its condition, service history, mileage, tyres, brakes and modifications before completing the purchase.
Can you finance a motorbike from a private seller?
Private-sale motorcycle finance can potentially be available depending on the lender. Additional checks may be required around the seller, ownership, the motorcycle and any existing security interests.
When buying privately, check whether another lender has a registered security interest in the motorcycle before completing the purchase.
How long can you finance a motorbike for?
Available terms depend on the lender and finance product. A longer term can reduce the regular repayment because the debt is spread across more payments, but it also gives interest more time to accumulate.
| Shorter term | Longer term |
|---|---|
| Higher regular repayment | Lower regular repayment |
| Debt repaid sooner | Debt remains for longer |
| Less time for interest to accrue | More time for interest to accrue |
| Higher short-term commitment | Potentially higher total borrowing cost |
Example motorbike loan repayments
The examples below use an illustrative interest rate of 9.95% p.a. over five years and exclude fees. They demonstrate how the amount financed affects repayments and are not current finance offers.
These figures are illustrative repayment examples only. Your actual repayment depends on the rate, term, fees and finance available to you.
| Amount financed | Example rate | Term | Approx. weekly repayment |
|---|---|---|---|
| $5,000 | 9.95% p.a. | 5 years | $24 |
| $10,000 | 9.95% p.a. | 5 years | $49 |
| $15,000 | 9.95% p.a. | 5 years | $73 |
| $20,000 | 9.95% p.a. | 5 years | $98 |
| $30,000 | 9.95% p.a. | 5 years | $147 |
Can riding gear and accessories be included?
Whether riding gear, accessories or other equipment can be included depends on the lender and finance arrangement. If additional items are financed alongside the motorcycle, remember that you may also pay interest on those costs.
The repayment isn't the full cost of owning a motorbike
Motorcycles have ongoing expenses that should be included when deciding what loan repayment is comfortable.
| Ownership cost | What to budget for |
|---|---|
| Insurance | Premiums can vary by rider, motorcycle and level of cover |
| Registration | Ongoing road-registration costs |
| Fuel | Depends on the motorcycle and how much you ride |
| Servicing | Scheduled mechanical maintenance |
| Tyres | Replacement can be a meaningful ownership expense |
| Safety gear | Helmet, jacket, gloves, boots and other riding equipment |
| Repairs | Allow for unexpected mechanical costs |
Can you repay or refinance a motorbike loan?
Consumer credit can generally be repaid in full before the scheduled end of the agreement, although reasonable early-repayment costs may apply depending on the contract. Motorcycle finance may also potentially be refinanced with a replacement loan. When refinancing, compare the existing settlement amount with the new rate, fees, term and total cost.
How to compare motorbike loans
Compare finance using the same motorcycle price and similar loan terms where possible. Looking at the complete finance arrangement gives you a better comparison than focusing only on the advertised rate or weekly repayment.
| Compare | Why it matters |
|---|---|
| Amount financed | Make sure the loans are funding the same amount |
| Actual interest rate | Determines a major part of the borrowing cost |
| Fees | Can change the overall cost |
| Loan term | Changes repayments and total interest |
| Security | Shows whether an asset secures the debt |
| Regular repayment | Needs to fit your budget alongside riding costs |
| Total amount repayable | Provides a broader view of the finance cost |
Compare motorbike finance options
Motorbike finance can vary between lenders in rates, fees, terms and security requirements. EveryLoan refers visitors to Simplify Finance, where applications, lender matching, credit decisions and funding are handled by Simplify Finance and its lender partners.
EveryLoan is not a lender. Motorbike-finance availability, approval, rates and loan terms depend on the lender and your individual application.
Frequently asked questions
A motorbike loan provides finance for an eligible motorcycle and is repaid through scheduled payments over an agreed term, together with interest and any applicable fees.
Potentially. Used motorcycles can be financed depending on the lender, motorcycle and individual application.
Potentially. Private-sale motorcycle finance may be available, although additional ownership, security and asset checks can be required.
Not necessarily. Deposit requirements vary between lenders and applications. A deposit reduces the amount you need to finance.
Potentially. Depending on the lender and loan, the motorcycle being purchased may be accepted as security for the finance.
Rates can depend on the lender, credit history, financial circumstances, amount financed, loan term, security and characteristics of the motorcycle.
Available loan terms vary between lenders and products. A longer term can reduce regular repayments but may increase total interest.
Consumer credit can generally be repaid in full before the scheduled end of the agreement, although reasonable early-repayment costs may apply depending on the credit contract.