Motorcycle Loans in Australia

Obtaining a motorcycle loan in Australia is not all that much different than procuring one for a car. You can obtain a loan that is secured by something you can use as collateral, or get an unsecured loan which does not even list the bike as its own collateral.


The loan may be taken out for a minimum of three years to a maximum of five years. Often it is the purchaser who will make this decision and opt for the payment that will fit well within the limits of a person’s budget. You also have a choice between getting a fixed or variable rate on your loan. The variable rate, or adjustable rate mortgage, involves a bit more risk. In the recent years of a poor economy, an adjustable rate mortgage has, and continues to, save some people a substantial amount of money in interest that is paid out on a loan. If the economy were to begin to recover, interest rates would increase along with your monthly remittance.

Places where the best rates can be found are local banks and credit unions. There are a number of private lenders to choose from, but even when their rates are good, they usually are not as low as a the aforementioned lending institutes.

Whether or not you are approved for your loan has a lot to do with your credit history. If you have always paid your debts in a timely manner, you have little to be concerned about. If, on the other hand, you have made persistent late payments, there is a possibility you may still get the loan but it will cost you more in interest. Your approval can come through in as little as a few hours, or possibly two days.

If you are denied the loan due to a poor credit rating, there are other options open to you, but again you will be paying substantially more in interest rates. Some companies do nothing other than deal with people who have poor credit. You will have a higher interest rate that will raise the payment you must make each month. These lenders will not deal with you in the same manner as a bank either. Miss a few payments and you will most likely see your motorbike being repossessed.

As with anything else you buy or sell, do not refrain from looking around. Just a few percentage points will make a great difference in the amount of money you lose over the life term of the loan.