Owning a motorbike in Australia is about more than just transportation. For some, it’s about exploring the scenery that Australia has to offer. For others, it’s about excitement and adventure.

But, that freedom comes at a cost, and many cannot afford the upfront money that’s required to realise their petrol-laden dreams. In this article, we will explore the different types of financing options available for motorbikes, and how best to navigate this potential minefield.

What types of financing options are there?

There are a few ways to make your ambition of owning a motorbike – or upgrading a current one – come true.  Here are the most popular forms of motorbike finance Australia. But, if you’re looking for a faster way specific to your situation, automated tools to find the best offers are available.

Personal Loans

Personal loans aren’t really motorcycle loans, they’re used for anything and obtained through places like banks. They’re either secured, meaning they require collateral, or unsecured, meaning no personal assets need to be put forward for collateral. Generally, you are very much liable for a personal loan, and they usually offer fixed repayment terms. Personal loans can range anywhere from 4-20%.

Dealership Financing

Dealership financing is usually a loan provided directly by the motorbike dealer. This is convenient, as it will be the same place you buy the motorbike, and they will also provide fixed repayment terms. But, they’re never going to be the cheapest option, and the APR can range anywhere from 5-15%.

Manufacturer Financing

Manufacture financing is a bit like the previous option, only the manufacturer is now the lender i.e. Harley-Davidson financing. However, they are more likely going to have some special incentives or more unique terms. Whether it’s KTM financing or Suzuki, APR can vary wildly, but it’s often cheaper than dealership financing. However, you’re more likely buying a more expensive, brand-new motorbike unlike second-hand options at a dealership.

Alternative Methods

There are a handful of alternatives. Online lenders, which are currently gaining popularity due to their fast streamlined process of approving applications and quickly handing out funds. They’re often easier to obtain than a personal bank loan, but can cost anywhere from 4-20% APR. The average, however, is certainly under 10%.

Beyond that, there are some options to use credit cards (expensive), P2P lending (expensive), or simply lease a motorbike.

What factors affect the cost of a motorbike?

The main factors that determine the price of a motorbike are its performance, age, and model. Premium features and add-ons can quickly rack up the price, too. However, what motorbike you’re looking at can also affect the cost of the financing.

For example, used car loans are typically more expensive (in terms of APR) than brand-new car loans. This is no different with motorbikes either, as highlighted by the fact that manufacturer financing is cheaper than dealership financing.

But that’s far from the only reason. Generally, people look after new vehicles better than older ones, which may be banged up already. It can sometimes be an incentive too, to spend more money on a newer bike, but equally it can be down to used motorbikes sometimes having shorter loan terms. Shorter terms mean that repayments need to be higher.

Pros and cons of each financing method

Personal Loans

Pros

• Flexible in its use (can agree on more than the bike’s value i.e. for upgrades, future maintenance, personal use etc)
• Competitive APR rates compared to many other methods
• Fixed repayment schedule makes it easier to budget

Cons

• Often have high credit requirements
• Long approval process

Dealership Financing

Pros

• It’s convenient to get financing from where you purchase the motorbike itself
• Scope for promotions either on the vehicle or the financing terms
• Negotiable, unlike a bank loan

Cons

• Often a higher APR
• Limited options

Manufacturer Financing

Pros

• Brand-specific support that can help down the line
• Often more streamlined and cheaper than dealership loans
• Even larger scope for incentives and promotions

Cons

• Limited in many ways (i.e. the model, loan options, etc.)
• Less scope for negotiation compared to a dealership

Online Lenders

Pros

• Online lenders are a very fast option and often have higher approval rates
• Large range of options with many lenders and terms
• The most flexible option

Cons

• It can be challenging to find a trustworthy lender compared to a bank loan
• Limited personal interaction regarding negotiation or understanding the terms

What’s the best option for you? How to pick

There is no “best option” objectively speaking, but that doesn’t mean there isn’t the right decision to be made according to your needs. The first thing to do is figure out exactly your situation and options available.

Credit history

Off the bat, a personal loan from a bank will seem like the cheapest option. It may not always be the case, but it often is. However, it may not even be on the table depending on your credit history.

Banks have the highest standards when it comes to creditworthiness, whilst bad credit motorcycle loans are more possible at online lenders and other alternatives. However, if your motorbike is used as security on a loan from a dealership, for example, you may be in with a better chance than a bank for approval.

Income

Again, banks sometimes require evidence that you’re on a consistent, and sometimes high, income to prove that you can afford the repayments. This is where an alternative like credit unions and online lenders can be helpful, as they often have greater flexibility. P2P is also an option for low earners, but you will pay the price for that.

Furthermore, a dealership may negotiate a more significant downpayment in order to make up for a lack of income.

How quickly do you need it?

Online lenders are the fastest of the bunch when it comes to approval, whilst bank loans are typically the slowest. If you’re not in a rush, it might be worth applying for the cheaper option at a bank, but be prepared to wait up to several weeks for an answer.

Where would you like to buy your motorbike from?

Finally, it’s important to consider who you want to buy from. Some options are completely ruled out unless you’re buying from them directly, whilst other landing options are more universal. And, if you’re looking for extra cash for maintenance or immediate upgrades, a flexible personal loan is the best option.

The very alternative financing

If nothing above ticks all the boxes for you, there are some more far-out alternatives. We have already touched on peer-to-peer lending, which is a pricey but highly accepting option. It can also be quick too as P2P lending is done online.

Credit cards certainly are on the table too, as a convenient option. They do have some unique benefits, such as rewards and introductory offers. But, for the most part, you won’t be able to borrow the entire cost of a motorbike and the APR will be high. Also, be careful not to worsen your credit score when using these.

Whilst motorbike leasing is an option for those that don’t want to bear as many upfront costs – or monthly costs for that matter – we will try to stay focused on financing to buy. Plus, leasing isn’t economical if you’re looking to buy at the end of it, anyway.

This leaves us with what sounds like a dramatic option, but it could make sense: home equity motorbike finance. Releasing some equity can mean obtaining a fairly cheap form of financing. After all, you already have the mortgage if you’re considering this option. But, some hefty additional fees can sometimes occur, and it can be a heavy application process. The real selling point here is that it has a large borrowing capacity at a fairly low cost.

Frequently Asked Questions

How common is financing a motorbike?

It’s a lot more common than you may think – most people cannot afford a $20,000+ motorbike in cash.

How can I increase my chance of securing funding?

Firstly, shop around and consider alternative lending options. Secondly, work on building up your credit score, as well as save for a bigger down payment.

Are there any additional fees associated with motorcycle loans?

Yes, it’s not just the repayments for the loan, but often there are additional fees (i.e. prepayment fees, processing fees, extra charges, etc.)

What are some alternative options for motorbike finance Australia?

First and foremost, online lenders for personal loans are worth checking out. But, home equity loans, peer-to-peer lending, and credit cards are also some alternatives.

Final Word

The open road awaits. Whilst you should always treat debt with caution and ensure you can meet the repayments, many people consider the APR well worth it even if bike loan interest rates vary wildly. Motorcycle loans are plentiful, whether it’s dealership financing or peer-to-peer lending. And, whilst motorbike loans may initially sound uneconomical, a motorbike itself is far more cost-effective than a clunky car drinking up all your petrol.

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Contact us on how we can help.

Motorcycle Sales Figures in the First Half of 2013

 

Below is the official statement. Read the full report at Motorcycle News – MCNews.com.au

Official figures released today by the Federal Chamber of Automotive Industries (FCAI) show that 

25,848 new motorcycles, ATVs and Scooters were sold in Australia during the first three months of 

2013. This is a slight decrease of 0.3 per cent (71 units) over the same period in 2012.

Both the Road motorcycle and Off-road motorcycle segments showed good growth of 7.6 and 7.3 

per cent respectively. Road motorcycles continued to sell more than Off-road with 10,840 road 

bikes finding new owners as compared to 8,074 Off-road motorcycles for the quarter.

ATV sales decreased by 18.7 per cent (to 4,343 units) compared with 2012 while Scooters also 

decreased. There were 2,586 new scooters sold in the first three months of 2013, compared to 

2,953 in the same period last year.

In the Road motorcycle segment, Kawasaki led the volume race with 2,156 units sold (an increase of 

87%), however, they were closely followed by Harley-Davidson with 2,048 sales and Honda coming 

in third place with 1,868 units sold. Other brands to show growth in the segment were Yamaha 

with an 8.9 per cent increase and Victory with a 21.6 per cent increase in sales, compared with the 

same period in 2012.

Honda was the leading volume Off-Road producer for the first three months of 2013 with 2,018

units sold (an increase of 40.3 per cent for the quarter) with Yamaha following closely on 1,921 

sales. Suzuki sales of off-road motorcycles were also strong in the first quarter, selling 1,428 units, 

an increase of 30.2 per cent in comparison to their first quarter for 2012.

Honda again led the sales of ATVs with 1,227 units sold, followed by Polaris and Yamaha.

While scooter sales softened overall, Piaggio sales again increased slightly to 452 (up 7.6%) to be 

the leading brand for the quarter. Honda was the second biggest seller of scooters with 282, and 

then several brands were slightly below that mark, including Kymco (252 units) and Vespa (233 

units).

FEDERAL CHAMBER

OF AUTOMOT IVE

INDUSTR IE S

ABN 53 008 550 347

59 WENTWORTH AVENUE

KINGSTON ACT 2604

TELEPHONE 02 6247 3811

WWW.FCAI.COM.AUIn the total sales stakes across all segments, Honda was the leading volume manufacturer for the 

first quarter of 2013 with 5,395 units sold, followed by Yamaha with 3,746 units, Kawasaki with 

3,228 units and Suzuki with 2,969.

Troy Bayliss New Business Venture

Troy Bayliss today announced that he would start the next exciting journey of his life but this time off the race track. Troy revealed his plans to host two of the biggest motorcycle exhibitions in Australia and to us, it seems like he is going to make it amazing! 

When you walk into some motorcycle shows and exhibitions you get the feeling that it is exactly like the last one you went to.. it seems a little bland and not that exciting. Troy looks like he will change that and make it a biker’s paradise. We look forward to hearing more. Read the official press release below.

Three-time World Superbike Champion Troy Bayliss today revealed plans to stage two of Australia’s largest motorcycle exhibitions in Brisbane and Melbourne in 2014.

MOTO EXPO Brisbane will be held at Brisbane’s RNA Showgrounds on March 21-23 followed by MOTO EXPO Melbourne, which will be held at Melbourne Showgrounds on November 28-30, 2014.

MOTO EXPO Brisbane will feature over 100 exhibitors showcasing the largest range of motorcycles, scooters, ATVs and UTV as well as custom, vintage and classic bike displays. Visitors can see product launches, meet special guests and watch live demonstrations across the three days of the event. 

“MOTO EXPO is a new and fresh approach to motorcycle exhibitions,” Bayliss said. “We have been working hard to create the perfect blend to showcase the motorcycle industry products and services, to enthusiasts and the wider community.

“Both the Brisbane and Melbourne Showgrounds offer newly renovated exhibition buildings and allow the exhibition to expand outdoors.

“The shows will come to life with test rides, safety demonstrations and racing. It is all there to create a great day out for the whole family,” Bayliss explained.

The Brisbane event will also stage a superstar of motorcycling feature event – The ‘Baylisstic Scramble’ Dirt Track Teams challenge.

The Baylisstic Scramble feature event will take place on Saturday evening and entry into the show will grant access to the 20,000-seat stadium. Five teams of four riders will compete for points across many races to determine the team champions.

A full list of riders will be announced in the coming months but visitors can expect to see some of Australia’s most successful motorcycle athletes past and present competing along with support races that include, classic and vintage bikes, ATVs, side by sides (UTV), mini moto, Freestyle Moto X, Trials and more.

“To compliment MOTO EXPO Brisbane we are bringing such a special competitive motorcycle event to the heart of Brisbane city which is going to be phenomenal,” Bayliss continued.

“The list of special guest riders competing is world-class and I always look forward to dirt flat track racing, it’s where it all began for me and many other riders, it’s bar-to-bar action.”

With the floor plan recently released, motorcycle manufacturers have thrown their support behind the innovative new event. KTM, Yamaha, BMW, Triumph, Ducati, Hyosung, Vespa/Piaggio and Arctic Cat are all confirmed with many more expected to sanction their attendance in the coming weeks.

Visitors to MOTO EXPO on Friday and Sunday won’t miss out on the Baylisstic Scramble action with special guest riders to participate in Friday practice sessions and demonstration races on Sunday.

A huge entertainment program featuring freestyle motocross, freestyle trials and street bike stunts will run over the three days of the event and for the kids, a special come-and-try zone will be created giving them the chance to get their first taste of motorcycle riding in a safe environment.

For further information visit troybaylissevents.com or follow us on Facebook   

For exhibitor information please contact Mark Petersen mark@troybaylissevents.com   

“The California Superbike School has a bulletproof, step-by-step method for training riders in the exact skills of cornering motorcycles. They are not famous racers or great businessmen but have become recognised worldwide, on four continents, because our system of training works and riders benefit from it.

If you have spoken to anyone who has done one of the schools you will know that everyone takes something away from it whether it be Level 1 or Level 4 no matter what their experience or current lap times. The coaches work closely with students on a 3 on 1 to or level 4 on a 1 to 1 basis. Our coaches thrive on improving your riding to ensure your experience is more enjoyable, safer and faster. 

Each of our many riding discoveries over the past three decades cleanly and effectively shatters the targeted barrier or the uncertainty riders experience in their cornering. The Superbike School’s program has matured and become integrated based on the experiences of real riders and their countless successes at overcoming their uncertainties, replacing them with skill and the real rush they’ve always wanted.

As we forge these discoveries into defined skills and written material, we translate them into simple and understandable techniques to constantly refine our four levels of training. With more effective drills and ways to demonstrate and communicate them, the success rate climbs and climbs. Our students are coached by us and they learn. Their barriers get blown away and are replaced with confidence.”

Keith Code – CSS Founder

A day with the California Superbike School is not just for racers or people who want to go fast. Their program suits all levels of riders and ages. If you do not have full control of your bike at time, know exactly what to do in certain situations or know how to get the most out of your motorcycle and make your riding as enjoyable as possible we highly recommend signing up today. With the most experienced advanced rider training programme in the world and training students at over 111 race tracks around the world we know what we are talking about and our students speak time and time again and keep coming back for more. 

To learn more about the California Superbike School’s classes check out their website at www.superbikeschool.com.au or call them during business hours on 1300 793 423

The team at Bike Domain have attended these classes and we cannot recommend them highly enough. We love the saying “Would you like to be taught to play golf by Tiger Woods or his Coach?” Time and time again we see famous racers teaching racing and we have attended those days. We much preferred the structured approach designed and taught by trainers with proven methodologies.

Meet the Yamaha 01Gen: Yamaha Launches Three-wheeler Crossover

Yamaha 01Gen. It is one of those designs that split opinion right down the middle. Some will feel it’s the most smoking hot thing to ride out of Iwata, Shizuoka Prefecture in a long while, while others, well others think it’s plain ole stupid.

Whatever side of the spectrum you lie on,

The 2014 Intermot show in Cologne saw Yamaha debut a new concept model they’ve dubbed the Yamaha 01Gen. This piece of machinery has had all sorts of tags thrust at it: a multi-wheel crossover, a trike or an ‘on and off crossover’ as Yamaha themselves call it.

Whatever term or syllable your tongue fancies, the three-wheeled motorcycle is designed for crossing a range of terrain, both on and off-road.

You probably may be curious as to what’s behind the name 01Gen. According to the Japanese OEM, it has been inspired by the words ‘genesis’ and ‘generate’, and these two express the bike’s ‘original Yamaha design and the new values it now represents now and forever.’

Mind Shift

The three-wheeler concept was a common sighting back in the ‘80s, albeit they had a single wheel in the front before the four-wheeler came about. Back then, they were not very popular with many because they were accused of being unsafe and unstable with the blame placed on the single wheel in front.

It was just a matter of time until the then three-wheelers made way, and quads came onto the scene.

Street-legal three-wheeling motorcycles have been a common feature on the streets for decades, but in the last couple of years, a shift has happened where we are seeing some preferring dual wheels in the front with the rear boasting a sole drive wheel.

It is this trike concept that Yamaha has pulled the wraps off, and their idea is to have a dual-purpose trike that can be used on both asphalt and rugged terrain.

Motorcycles meant for riding both on and off-road have been around for quite some time now, so the dual sport concept is no fresh off-the-oven idea. However, this stab at the market by the Japanese whopper is the first attempt to make a reverse trike for both trail and street.

At the moment though, Yamaha is a bit mingy on this boy’s mechanical parts.

‘Refined Dynamism’

A press release by the company dubbed the Yamaha 01Gen angular design as ‘Refined Dynamism’.

The top half is meant to bear a resemblance to a sports bike with sharp lines and a mean look. The lower half, on the other hand, is supposed to be utilitarian to hint at the trike’s dual-track abilities. Yamaha says this is just the beginning, and the company has plans for more GEN concepts on the horizon.

The suspension on the front uses separate forks for every wheel to enable it to lean. The idea is to provide riders with the stability to cross rough terrain and still find it usable on the asphalt. It also boasts larger wheels and more suspension, an integrated exhaust, with a striking silver and blue colour scheme. Sources also say the rear is belt-driven.

The Yamaha 01Gen resembles others like the Piaggio MP3, which has great performance and feels more like a motorcycle than you would have expected.

Final Thoughts

If you are the futuristic type, this will no doubt come as very welcome news. And as much as the idea of a trike may not augur well with some of us, you have to admit the Yamaha 01Gen should be able to lean smoothly through turns, which in itself can add to the motorcycle sensation, but this time with a bit more stability on the front end.

The press release by the company may sound a bit farfetched, but give them credit for the design.

It may not be everyone’s cup of coffee too, but Yamaha has done a good job in delivering for powersport aficionados.

Watch the launch here:

http://youtu.be/JSqpK_xX6YU

Make Way Earthlings, Lotus C-01 Superbike will be roaring in your Neighbourhood

What’s the first thing that comes to mind when you lay your eyes upon the Lotus C-01 superbike? ‘Majesty’, ‘Monster’, ‘Oh my God’, ‘It’s a beast of a…’, ‘The biking alpha-male’ – many thoughts jetting your mind at once it leaves one dumbfounded; for many, it’s just jaw-dropping. And rightly so.

When Lotus first revealed computer-generated images of the C-01 in January 2014, the reaction that ensued was akin to that faced by scientists who made life-changing discoveries back in the day. ‘Outrageous’ many called the daring styling, saying Lotus would never pull it off, and if it did, then it would never work out.

Fast-forward several months later and behold! The latest images of the finished product almost resemble the very first comp-generated design images.

Marvel at the Majesty of the C-01

Whether you love motorcycles or hate them, you have to swallow it and admit this is the most gorgeous motorcycle ever created. Just cast another look its way and absorb it all. Stunning. Mind-boggling. Gorgeous and masculine at the same time. It’s wicked and awesome in every possible way. This is the definition of what a 200hp 21st-century superbike ought to look like.

And guess what else makes it all the more amazing? The C-01 is the very first motorcycle to come out of the Lotus production line. British luxury automaker Lotus Cars, well known for their sleek supercars, decided to give the biking world a go. So, they sat down and decided to create a beast of a bike that would have the world sit up and take notice.

The hyperbike has been a partnership between Lotus and KPM (Kodewa Performance Motorcycles), flanked by the Holzer Group. It is Dr. Colin Kolles – KPM’s lead – who came up with the idea of a superbike in the first place.

Speaking to the press earlier in the year, he said that they embarked on a mission to build a bike that would not just be a great idea but also one that would typify ‘a piece of art in motion.  He also reflected on the good number of bikes oozing style over substance that he’s seen over the years. It is a combination of these two attributes that rode him into this farfetched idea that aimed to combine ultramodern technology with a ‘truly jaw-dropping aesthetic’.

Star-studded Cast

The C-01 may carry a moniker with much gravitas, but the team behind its creation comprises several industry bigwigs.

The external bodywork is courtesy of renowned designer Daniel Simon (former Bugatti designer who was also behind the Disney motion picture Tron: Legacy, and Tom Cruise’s Bubbles in Oblivion). He calls his latest creation a ‘high-tech monster in a tailored suit’.

The Holzer Group, with several Moto One and Moto Two world championship bikes as well as Formula One and Lotus LMP2 sports cars under their belt, is responsible for the geometry and construction.

Specs Sheet

To avoid risking unnecessary problems by getting bespoke parts to function, the team decided to go with the engine from the KTM RC8R superbike. The 1195cc water-cooled V-twin Lotus C-01 engine packs 175bhp, powering the rear wheel through a 6-speed transmission and hydraulic clutch.

Made of carbon fibre and lightweight metals, this machine boasts 180 kg without a rider, fuel, and oil, on par with the world’s fastest superbikes.

Frame-building experts at Kalex are behind the chromoly trellis frame. These guys are famous for assembling and welding frames to within 30-micron tolerance. The colour is custom, based on the customer’s preference.

The wheels too are carbon fibre and are courtesy of South African firm BST who had to design custom wheels for the C-01 given their slightly unusual size: the fronts measure 19” in diameter with the back measuring a traditional 17 inches. Together, they span 65 inches (almost five-and-a-half feet).

It also boasts Brembo twin disc brakes, with 320mm callipers, radially mounted. There is traction control, but no ABS-shocking.

Twin Ohlins have been fitted between the swingarm and subframe given there’s no room for a single shock. The front features Sachs forks placed upside-down, but they have been covered in aerodynamic sleeves in a bid to preserve the oval fork design contained in the original comp-generated design images.

Oh, we can’t forget to mention that the C-01 will be a limited-edition creation with only 100 examples being manufactured. And with a $137,000 price tag to its name, most of us can only gaze at this wonder from the confines of our Internet connections.