Plan to buy your first motorcycle


You’ve seen it all over Instagram, that gorgeous motorcycle gleaming in the sun. You’ve admired it from afar and wondered what it would feel like to sit on top of it and ride away into the sunset. But before you go out for motorcycle finance, there are some things you should know about financing a new set of wheels. Here’s how to ensure your first motorcycle purchase is as smooth as possible.

Estimate how much money you need

The money you need must be estimated before you apply for a loan. This can be done in two ways:

  • By looking at the cost of and then adding up all the associated costs (such as insurance and registration fees)
  • By talking with a financial advisor or another professional who has experience helping people buy motorcycles

Consider buying a used motorcycle

Buying a used motorcycle is the most practical choice for first-time buyers. There are two main reasons to do so: the price and the size. A used motorcycle is cheaper than a new one so you can get more robust or reliable engines for less money. You can also find a model that fits your needs better than a new one would have.

For instance, buying a used one could be your best option if you want long-range capabilities and lots of power but want to spend only a little on your first motorcycle finance.

Figure out your interest rate and monthly payment

Interest rate is the amount you pay for borrowing money, typically expressed as an annual percentage rate (APR). Monthly payment is the amount you spend on a particular loan or debt, including principal and any additional fees or costs associated with the purchase.

To figure out how much you’ll owe on your motorcycle at any given time during its loan period (assuming it has one), multiply its price by its APR and divide by 12 (or multiply it by 100 if there are no digits behind the decimal point). Multiply that answer by 0.12 if there are no digits behind the decimal point; otherwise, subtract 12 from that number so that it represents months instead of years.

Getting pre-approved for a loan

Pre-approval is an excellent idea to ensure you have enough money to buy the bike and know what your monthly payments will be. 

You’ll get a better interest rate if you are pre-approved; lenders are more willing to lend you money because they see how responsible of an individual you are. You can get pre-approved for a loan without applying for one, which only takes about 1-2 days rather than weeks or months.

Finding your vehicle and making an offer

If you live in an area where the riding season is short, consider buying a bike with low mileage to last through many years of use. Once you have found the right motorcycle, you can make an offer on it. Consider the vehicle’s condition and any repairs needed before purchasing. Ensure an authorised mechanic has done all safety checks before agreeing on a price with the seller.

Remember that other bidders may be eyeing the same bike/scooter/moped when negotiating your new purchase. So, if one party raises their bid higher than yours, then walk away from negotiations until later when they might come down again (or if not, try another model).

Finalising the purchase of your motorcycle

Now that you have all of your paperwork in order, it’s time to make the big purchase. You will need the motorcycle’s title, registration and license before you can drive away with it. Once you return home with your new machine, apply for insurance and purchase a helmet. Enrolling in some riding classes at this point is also a good idea so that you are prepared when it comes time to hit the road.


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