Motorbike
Finance Deals

Getting the right motorcycle finance deal puts your dream bike within reach through manageable monthly payments. Today's finance options accommodate various budgets and circumstances, from traditional loans to flexible payment plans. Interest rates typically start at 7.9% APR, with loan terms ranging from one to seven years.

Most lenders look for a credit score of 660 or higher for the best rates, though specialized financing exists for scores down to 580. Your choice of motorcycle and intended use also influence available terms and conditions.

Work out how much you can afford every month

Smart budgeting goes beyond the basic monthly payment. Factor in insurance premiums, routine maintenance, fuel costs, and a buffer for unexpected repairs. Financial advisors suggest keeping total motorcycle expenses under 20% of your disposable monthly income.

A £10,000 bike financed over three years with a £1,000 deposit typically costs between £250 and £300 monthly. This figure varies based on your credit score, chosen lender, and specific finance package. Consider that comprehensive insurance might add £30-£100 monthly, while maintenance averages £200-£400 annually.

Extending your loan term reduces monthly payments but increases total cost through interest. For example, choosing a five-year term instead of three years could drop your payment by 35%, but you might pay 50% more in total interest over the life of the loan.

Motorbike financing deals & loans

Understanding different finance options helps you choose the right path to motorcycle ownership. Personal Contract Purchase (PCP) appeals to riders who like upgrading their bikes regularly. These 24-36 month agreements feature lower monthly payments because they're based on the bike's depreciation rather than its full value.

Hire Purchase (HP) offers a straightforward route to ownership. You'll own the bike after making all payments, typically over 12-60 months. Deposits range from 10-30%, with competitive interest rates starting at 9.9% APR for those with strong credit profiles. HP suits riders planning long-term ownership who prefer building equity with each payment.

Personal loans provide flexibility since you own the bike outright from purchase. Interest rates vary significantly based on your credit score, typically ranging from 7.9-15.9% APR. This option lets you shop around for the best bike deal independently of financing.

Bad credit motorbike finance

Past financial difficulties needn't prevent motorcycle ownership. Specialized lenders focus on current income stability and recent financial behavior rather than just credit scores. Most accept minimum scores of 580, while some work with scores as low as 500 if other criteria are met.

Interest rates reflect higher lending risk, typically ranging from 15.9-29.9% APR. Providing a larger deposit of 15-30% strengthens your application and could secure better rates. Many lenders also consider stable employment history, with minimum requirements of 12 months in your current job.

Some lenders offer credit-building programs where consistent payments over 12-18 months can qualify you for better rates. Adding a creditworthy guarantor might also improve your chances of approval and help secure more favorable terms.

No deposit motorcycle financing

Zero deposit options suit riders with strong credit profiles but limited savings. These arrangements typically require credit scores above 700 and monthly income at least triple the proposed payment. Expect interest rates between 12.9-19.9% APR to offset the increased lending risk.

Monthly payments run 15-25% higher than standard finance deals with deposits. Lenders often restrict eligible motorcycles to models under five years old and require comprehensive insurance coverage from day one. This protects their investment while ensuring you can maintain the bike properly.

Most lenders conducting soft credit checks during initial applications, letting you explore options without affecting your credit score. Final approval requires proof of income, address history, and valid motorcycle license appropriate for your chosen bike.

Who can access motorbike finance?

Basic eligibility starts at age 18 for most products, though some specialist lenders accommodate 17-year-old riders. You'll need stable income - typically 12 months of employment or 24 months self-employed history. Your monthly earnings should exceed the finance payment by three to five times.

UK residency requirements usually span three years, with some flexibility for shorter periods. Valid motorcycle licenses matching your intended purchase are essential, though provisional licenses suffice for learner-legal bikes. Most lenders require three years of address history and current bank account statements.

Self-employed riders need to provide two years of accounts or tax returns. Some lenders also check business credit scores alongside personal credit ratings. Clean driving records typically strengthen applications, though minor infractions may be acceptable.

Do I have options if my credit rating is poor?

Alternative lending programs assess applications holistically rather than fixating on credit scores. Recent banking activity, steady income, and current financial stability often carry more weight than past credit issues. Some lenders accept scores as low as 500 with adequate income and larger deposits.

Higher deposits of 25-40% often offset credit concerns. Guarantor arrangements, where someone with good credit co-signs your agreement, can unlock better rates. Some lenders offer step-up programs - start with higher rates but earn improvements through reliable payments.

Local dealerships sometimes maintain relationships with specialist lenders familiar with complex credit situations. These partnerships can smooth the approval process, though you'll still need to demonstrate affordability through current income and expenses.

Guaranteed motorbike financing for bad credit

While true guaranteed approval doesn't exist, specialized programs achieve approval rates above 80% for qualified applicants. Basic requirements include £1,500 monthly income, three years UK residency, and valid ID. Credit scores as low as 500 receive consideration with larger deposits.

Success rates improve significantly with deposits between 25-40%. Additional requirements might include vehicle tracking devices and comprehensive insurance coverage. Most lenders conduct soft credit checks initially, allowing risk-free exploration of available terms.

Documentation requirements include three months of bank statements, proof of address, and income verification. Self-employed applicants typically need two years of accounts. Lenders may also check commercial credit reports for business owners.

Alisa Dan

17 February 2025