Motorcycle Finance Australia
Motorcycle finance is funding used to purchase a motorcycle, where the bike itself may act as security for the facility. Finance can be secured against the motorcycle or unsecured, with repayments structured over an agreed term that suits the rider or business using the bike.
Whether the bike is for work, for getting across town, or for the weekend, the right finance structure puts you on the road without draining your cash reserves. Gateway Asset Loans compares options across a panel of over 70 lenders to find a motorcycle finance solution suited to your circumstances, whether the bike is for personal or business use.
How Does Motorcycle Finance Work?
Motorcycle finance provides the funds to purchase a new or used bike. The facility may be secured by the motorcycle itself, which can mean a more competitive structure, or unsecured for greater flexibility.
Repayments are scheduled over a term that suits the expected useful life of the bike, often between two and five years. This aligns the cost of the finance with the period you are using and enjoying the motorcycle.
If the bike is for business use, the structure and GST treatment may differ from a personal purchase. Your broker explains how each option affects your position before you commit, particularly where the bike is used for both business and private purposes.
What Assets Can You Finance?
Key Terms Explained
What is asset finance?
Asset finance is funding used to acquire a business asset, such as a motorcycle or piece of equipment, where the asset itself generally acts as security for the facility. Repayments are structured over an agreed term, and ownership at the end depends on the structure you choose.
What is a secured versus unsecured business loan?
A secured loan is backed by an asset, such as the motorcycle, which the lender can claim if the loan is not repaid, while an unsecured loan has no specific asset as security. Secured loans generally offer a more competitive structure, and unsecured loans offer speed and flexibility.
What is a chattel mortgage?
A chattel mortgage is a finance structure where the borrower owns the movable asset, such as a motorcycle, from the start and the lender holds a mortgage over it until the facility is repaid. GST and tax treatment depends on your individual circumstances.
What is a novated lease?
A novated lease is a three way agreement between an employer, an employee and a lender, where the employee leases a vehicle and the employer makes the lease payments from the employee's pre tax salary. Tax treatment depends on individual circumstances and should be confirmed with an accountant.
Secured Versus Unsecured Finance
Motorcycle finance broadly falls into secured and unsecured options. The comparison below outlines the key differences between the two.
| Structure | Who owns the asset | Balance sheet treatment | GST treatment | Best suited to |
|---|---|---|---|---|
| Secured Loan | You own the motorcycle | Bike and loan appear on the balance sheet if for business | GST may be claimed if the bike is for business use | Riders wanting a more competitive structure |
| Unsecured Loan | You own the motorcycle | Loan appears as a liability if for business | GST may be claimed if the bike is for business use | Riders wanting speed and no asset security |
| Chattel Mortgage | You own the motorcycle from the start | Bike and loan appear on the business balance sheet | GST may be claimed upfront on the purchase price | Businesses wanting ownership and GST flexibility |
| Finance Lease | Lender owns the bike, you lease it | Generally recorded as a lease liability | GST charged on the monthly lease payments | Businesses wanting to preserve working capital |
Tax treatment depends on your individual circumstances and should be confirmed with your accountant or tax adviser.
Who Can Apply for Motorcycle Finance Australia?
Why Use a Broker for Motorcycle Finance Australia?
Frequently Asked Questions
Can I finance a used motorcycle?
Yes, many lenders finance used motorcycles as well as new. The bike's age, condition and kilometres are usually considered when assessing the facility. A broker can identify lenders that actively support used motorcycle finance for your make and model.
Do I need a deposit for motorcycle finance?
A deposit is not always required. Some lenders offer 100 percent finance for the bike, while others ask for a contribution depending on the motorcycle, your circumstances and the structure chosen. Your broker will outline the deposit position for each option.
Can I get motorcycle finance with a casual or part time income?
Lenders assess your capacity to repay, which can include casual and part time income. The structure available to you depends on your overall financial position. A broker can review your situation and identify lenders that may assist.
Can I finance a motorcycle for business and private use?
Yes, many riders finance bikes used for both business and private purposes. The proportion of business use is a consideration for tax and GST, so it is worth discussing with your accountant. A broker can help you choose a structure that suits a mixed use motorcycle.
What happens at the end of the finance term?
With a secured or unsecured loan you own the motorcycle outright once the final payment is made. With a lease there may be an option to purchase the bike, return it, or refinance the residual. Your broker explains the end of term position for each structure up front.
Can I trade in my current bike as part of the finance?
Yes, a trade in can be used as a deposit toward your new motorcycle. The trade in value reduces the amount you need to finance, which can lower your repayments. Your broker can factor a trade in into the finance structure.
Related Finance Solutions
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Get a Quick QuoteFor further reading, see business.gov.au finance and capital guidance.