Choose between loan options specifically designed to finance the purchase of a Harley-Davidson.
Heart set on a Harley? Buying one of these iconic machines represents a considerable investment, with price tags of up to $50,000 for certain limited-edition models. With the added costs of riding gear, maintenance and licences, the business of owning a Harley-Davidson quickly becomes an expensive one.
If you’ve found the bike of your dreams, you have the option of several loans specifically designed for purchasing it. Whether you’re considering a new or a used model, it’s worth exploring finance brokers that offer specific Harley-Davidson loan packages, as these are set up with terms and repayments suited to this kind of purchase.
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- Low fixed interest rate
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- Interest rate from: 6.99% p.a.
- Comparison rate: 7.54% p.a.
- Interest rate type: Fixed
- Application fee: $380
- Minimum loan amount: $15,000
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What options do I have to finance a Harley-Davidson?
Harley-Davidson Australia offers customers the OWN loan package to finance the purchase of the bike, as well as parts and accessories. You make fortnightly or monthly direct-debit payments, along with interest and fees.
You also have the option of applying with your bank. However, if you have bad credit or outstanding debt, your chances of securing a loan are slim.
A finance broker is another option. The broker submits your application to several different lenders, which increases your chances of getting the loan approved. Alternative lenders have more lenient lending criteria, but loan terms and interest rates may be less flexible.
How to compare your Harley-Davidson loan options
When comparing Harley-Davidson loans, it’s important to consider the factors that determine whether or not you can afford to repay it.
- Loan terms. Different lenders offer different loan terms, so pick the loan that best suits your budget.
- Interest rates. This impacts directly on how much the loan will cost. Interest rates differ depending on the lender, so before committing to a loan offer, it’s a good idea to shop around.
- Buy-back policies. In some cases, a lender will offer to buy back your Harley-Davidson after a certain period or after a certain number of kilometres are clocked. Keep in mind that conditions will apply.
- Traditional versus alternative lenders. If you have bad credit, a traditional bank is less likely to approve your loan. However, an alternative lender might disregard a bad credit report and offer loan terms based on what you can afford to repay.
- Fees. Like interest rates, these additional charges directly affect how much you end up paying in installments. Make sure that you understand the fees schedule and when you’ll be charged additional fees, for instance, in the case of late payments, settling the loan amount early or changing due dates.
Looking at a used Harley?
You can still find a secured loan if you want to purchase a used motorbike. Here are the lenders and criteria to consider:
- Beyond Bank Low Rate Car Loan. The motorbike cannot be more than two years old.
- Latitude Personal Loan. The motorbike cannot be more than 10 years old.
- Cashfirst Secured Car Loan. The motorbike needs to be less than seven years old.
- ANZ Secured Car Loan. The motorbike needs to be less than seven years old.
What should you consider before you buy your Harley?
Here are some of the things to consider when shopping for your Harley.
- Secured or unsecured. If you want to purchase a used Harley you’ll need to find financing to match it. Some secured loans will not accept a vehicle over a certain age.
- Checking the bike. If you’re buying from an individual, it’s important to make sure that you’re getting what was advertised. Make an appointment to inspect the bike for sale, and if you’re a novice, take along someone with some knowledge about Harley-Davidsons. Ask to see service records and guarantees for replaced parts.
- Insurance. Whether new or used, a Harley-Davidson is an investment that should be covered with insurance. If your lender doesn’t offer insurance, enquire about your options at a Harley-Davidson dealership.
- Riding experience. If you’ve never ridden a motorcycle, it might be a good idea to start with something smaller than a Harley-Davidson. Take lessons and get some experience on a motorcycle before making a serious investment.
- Licence restrictions. Motorcycle licences have CC restrictions. It is illegal for you to operate a bike that is bigger than what you’re licenced to ride. These rules vary by state so you’ll need to check before you purchase.
- Maintenance. In the same way that a car or a house requires constant care and maintenance, a Harley-Davidson will need to be serviced regularly. This is especially true of used models. Keep in mind the cost of maintenance when determining your budget.
- Beware loan fees. Fees differ depending on the lender, so it’s important to understand what you’ll be paying in fees and interest.
Frequently asked questions about Harley-Davidson loans
How does a Harley-Davidson loan work?
Already own a car or a house? If yes, then you already know how these kinds of loans work. Usually home loans are taken out with traditional banks, but the procurement and repayment processes are similar. Once you’ve found the bike you want, you submit an application to the lender or financial broker, who will then come back with a loan offer based on what you can afford to repay.
What are the benefits of going through a finance broker to buy my Harley-Davidson?
Financial brokers offer customers assistance throughout the process, from filling in the application forms to finding the right lender and rates to suit your budget. Traditional banks don’t usually approve borrowers with bad credit, but smaller and second-chance lenders have different criteria and loan terms for people with bad credit history.
Should I buy new or used?
This is a question of what you can afford, but also your riding ability and personal taste. Some riders like the character of a used bike, which is probably also the better option for a beginner. Older bikes are a riskier choice because they have a lower resale value. If you’re buying used, make sure that the dealer is reputable and approved by Harley-Davidson.
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