A motorcycle loan term is usually between 36 and 60 months. Some lenders may stretch this to 72 or 84 months.
The ideal term for you must align with your repayment capacity, how long you intend to own the bike, and the general timeframe you wish to be debt free.
A longer agreements lowers your repayments but will increase the total interest paid over the life of the loan.
This also keeps you in debt longer. So there is a tradeoff to be made.
In this article, we will discuss the mechanics of your loan term when financing a new motorbike and how to match the outcome with your needs.
Key Takeaways: Bike Loans Terms
| Standard Terms | Most motorcycle loans in Australia are written for 48 to 60 months (4 to 5 years). This is the sweet spot that balances repayments and cost. |
| Shorter Terms (24-36 months) | Best if you want to be debt-free quickly and minimise the total interest you pay. However, your monthly repayments will be higher. |
| Longer Terms (72-84 months) | Usually only approved for brand-new or high-value bikes. They offer lower repayments, but higher total cost. |
| Asset Age and Quality | If you buy an older, used motorcycle, you may be capped at a shorter term. |
5 Factors That Determine Your Bike Loan Term
Your loan term will be the result of the following factors:
- Credit strength: Strong borrowers can access maximum flexibility and longer terms.
- Repayment capacity: A shorter loan term is only possible if you can afford the repayments.
- Loan amount: Larger loans often require longer repayment terms.
- Lender policy: The range of terms available will be lender specific.
- Bike Age: An older bike may not qualify for a longer loan term.
How you structure you loan can also influence the end result, but more on that later.
Standard Motorcycle Loan Terms
How long are motorcycle loans usually? Lenders tend to structure finance terms in yearly blocks.
Expect to see these term options:
- 36 months
- 48 months
- 60 months
- 72 months (84 months sometimes available)
Lenders do not offer every term to every borrower. You must meet eligibility requirements based on their credit assessment and the factors discussed earlier.
The majority of motorcycle loans are setup over 4 to 5 years (48 to 60 months).
These terms keep your repayments manageable without stretching into ultra-long debt.
Your bike should also retain a reasonable market value throughout the life of the loan.
When Shorter Motorcycle Loan Terms Make Sense
A 24 to 36-month term is your fastest path to outright ownership and minimal interest charges.
These shorter terms suit borrowers with stable surplus cash flow that can support higher repayments.
You simply trade higher monthly repayments for a drastically lower total loan cost.
However, never commit to a short term unless the larger repayments are sustainable and will not place strain on your household budget.
A shorter loan term could also be offered to those trying to finance a bike with bad credit.
Lower loan amounts and shorter repayment timeframes are more common for this category of borrower.
Risks of 72 to 84-Month Motorcycle Loans
Stretching a loan to 72 or 84 months helps keep repayments manageable for a more expensive bike.
However, there are some downsides to consider.
You pay significantly more total interest over the additional year or two.
Depreciation of the motorcycle can also outpace the slower principal repayments, leaving you underwater for longer early on in the repayment cycle.
You will owe more than the bike is worth if you sell or trade-in early on.
How Bike Age Restricts Your Loan Term
Lenders will have strict criteria on what kind of assets will qualify as collateral for a secured bike loan.
A 60-month term on an old bike may breach the lender threshold.
Newer bikes easily qualify for longer contracts.
Whereas older motorcycles face shorter limits because mechanical uncertainty and rapid depreciation shrink the resale market.
Before committing to a used bike, confirm the lender’s age at end of term rule.
This policy dictates exactly how old the motorcycle can be when your loan finishes, preventing unexpected rejections.
How to Calculate the Best Loan Term for You
Head to our repayment calculator and start working out the ongoing costs of your loan over a range of loan terms:
- Step 1: Enter your total borrowing amount.
- Step 2: Change the loan term to 36, 48, 60, and 72 month variations.
- Step 3: Record the monthly repayment and total interest for each term..
- Step 4: Choose the shortest term that fits your budget.
- Step 5: Sense check this term against your intended ownership timeframe.
If you are struggling to meet the required repayments then there are also options to include a balloon payment in your loan structure.
This allows you to repay a portion of the loan over the term, with a large final payment at the end.
Frequently Asked Questions
What is the longest motorbike loan term I can get?
You may be able to secure an 84 month loan term if you meet all credit criteria and the motorcycle being financed is eligible collateral. These lonegr loan terms are usually only available for new, high-value bikes.
Do used motorcycles get shorter loan terms?
Yes. Lenders may restrict the maximum loan term based on vehicle age.
Can I refinance or pay out a motorcycle loan early?
Yes, but check for early termination costs first. Extra repayments are beneficial if your contract permits them without penalty fees.
How long are motorcycle loans usually?
The majority of motorcycle loans are usually between 48 and 60 months (4-5 years). There are variations that can be shorter and longer than this depending on your financial circumstances, and bike you are trying to finance.
Choosing Your Motorcycle Loan Term
Most motorcycle loans are usually in that 36 to 60 months range, but you can go longer or shorter in the right circumstances.
If you are still unsure what would suit your circumstances then get in touch with our expert team of brokers for a free consultation.
