Want to buy a Harley-Davidson using a loan or finance? We've compared the different finance and loan options for buying a Harley, including in-house finance, a bank loan, broker finance as well as secured and unsecured personal loans.
Compare a range of Harley-Davidson loans
What options do I have to finance a Harley-Davidson?
- In-house. 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.
- Bank loan. 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.
- Contact a broker. 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.
- Non-bank lender. There are also a number of non-bank lenders that supply loans that are either specifically for motorcycles, car loans that are inclusive of motorcycles or personal loans. See below for more details.
Non-bank lender Harley-Davidson loans
Getting a loan from you bank can sometimes prove tricky, especially if you don't have a perfect credit record. And even if you do, due to their monopoly on the market, banks can usually afford to charge higher rates than their smaller competitors. Therefore, it's a good idea to shop around for other options on offer before you get in contact with your bank.
There are a number of different loans from non-bank lenders that you can choose from, all with slightly different features:
A motorcycle loan is a loan specifically designed for purchasing a motorcycle. Benefits of this may include tailored packages and expert knowledge from the lender that will fit your specific needs.
Motorcycle loans usually vary between $5,000 and $100,000. They are also usually secured by the purchase, so the actual amount available to you will depend on the cost of the Harley you want to buy.
If you don't have perfect credit, you may have to pay a higher rate, but you could still qualify for a loan. This is because the lender faces less risk when the loan is secured.
Many car loan lenders also cover motorcycle purchases. If you see a car loan that you like the look of, contact the lender directly – if you're on Finder, you can do this by clicking "Go to site" – and ask them if they fund motorcycles. Car loans can be both secured and unsecured and vary widely in funding amounts.
These types of loans are more flexible in their usage. There are two main types of personal loans:
Unsecured personal loans can be used for just about anything. This means that if you wanted to take out an unsecured personal loan to cover the cost of your Harley-Davidson, you wouldn't have to use the bike as security. However, unsecured personal loans do have higher rates than secured loans.
If you have bad credit, an unsecured personal loan will likely have a much higher rate than other types of loans.
Taking out a secured personal loan will usually cost you less than an unsecured one. But, unlike car and motorbike loans, you can use almost anything you own of value as security. This could be useful if, for example, you wanted to make modifications to your Harley. Securing a loan with the bike would usually mean that you would be unable to do this, but if you secured the loan against your home equity, car, some valuable jewellery or even art – you would be free to do so.
How to compare 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 the loan.
- Loan terms. Different lenders offer different loan terms, so pick the loan term that best suits your budget. Note that the longer the term, the more the loan will end up costing you. On the other hand, shorter term loans require much higher repayments.
- 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.
- Traditional versus alternative lenders. If you have bad credit, a traditional bank is less likely to approve your loan. However, an alternative non-bank 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 instalments. Make sure that you understand a loan's fee schedule before signing a loan contract. Instances when you may be charged additional fees include in the case of late payments, settling the loan amount early or changing due dates. Some lenders also charge monthly or annual account-keeping fees.
Looking at a used Harley?
You can still find a secured Harley-Davidson loan if you want to purchase a used bike. Here are the lenders and criteria to consider:
- Beyond Bank Low Rate Car Loan. The motorbike cannot be more than 2 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 7 years old.
- ANZ Secured Car Loan. The motorbike needs to be less than 7 years old.
What should you consider before getting a Harley-Davidson loan?
Here are some of the things to consider when shopping for your Harley:
Secured or unsecured?
Some secured loans will not accept a vehicle over a certain age. If you want to buy a used Harley, check with the lender to see if it can be used as security. If not, or if you don't want to use your Harley as security, consider an unsecured loan.
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. If you’re a novice, take along someone with some knowledge about Harley-Davidsons. Ask to see service records and guarantees for replaced parts.
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.
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.
Motorcycle licences have CC restrictions. It is illegal for you to operate a bike that is bigger than what you’re licensed to ride. These rules vary by state so you’ll need to check before you purchase.
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, as well as in interest.
Frequently asked questions
How does a Harley-Davidson loan work?
Already own a car or a house? If you do 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 a 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 short term lenders have different criteria and loan terms for people with bad credit history.
Should I buy a new or used Harley-Davidson?
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.
What to remember
Before submitting a loan application or committing to a loan contract, it's important to remember to compare your options. Comparing your options equips you with the knowledge to make the best possible decisions. If you want to find out more about a Harley-Davidson loan or you're ready to apply, click "Go to site" to contact the lender directly.
In Australia, Harley-Davidson sells a mixture of bikes. There's a softail street bike called the Street Bob, which blends vintage-inspired styling with modern features.
Prices start from $23,995 for this model. If you want to cruise around on one of the most iconic models, the Softail Standard is probably your bike. It starts at $21,495.
Harley isn't just about choppers though. It sells trikes, an adventure touring bike called the Pan America 1250 Special and even an electric bike, marketed as the LiveWire. The LiveWire costs $49,995 and was the bike used by Ewan McGregor and his friend to travel through South America.
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