Financing A Used Motorcycle - What You Need To Know

Why buy a used motorcycle?

For many riders, the prospect of a used motorcycle is much more appealing than a brand new one. Given how quickly vehicles depreciate, financially savvy customers might see a second hand motorcycle as a better investment than a new one. You’ll be able to save some money and give a used bike a new home - but there’s a few things you’ll want to consider first. Driva has you covered, from where to find your used motorcycle to the best way to finance it

Starting out

Set your budget

The first thing you’ll want to decide is how much to spend on your new ride. Since you’ve decided to go with a used motorcycle, you’ll be able to make some significant savings on the initial purchase price (win!), but you’ll need to keep in mind that you may incur additional costs depending on how well the bike has been maintained and any existing wear and tear.

Before you start shopping, try and come up with a rough guide of how much you’re wanting to spend in total, and how much you can afford to spend in monthly loan repayments. This will help narrow down the options of bikes and loans, and help you stick within a budget. 

Check your credit score

One of the factors that lenders will consider when pricing your loan is your credit score. Generally, the higher your credit score, the lower the interest rate they can offer you. This is because the lender will view your loan as low risk, giving them more certainty that you’ll be able to meet your repayments. 

When you apply for a loan with Driva, we run a ‘soft credit check’, which means that we’re able to access your credit score without recording an enquiry on your file or impacting your credit score in any way. 

If you want to find out your credit score, and why it is the way it is, you can do this for free with our friends at Equifax. Additionally, you can reach out to us directly to have a chat about how you can improve your credit score, and which rates are available to you. Give us a call on 1300 755 494 or email us at

Do your research

Before you make any large purchase like this, you should make sure that you’re as informed as possible and well equipped to make a decision about which bike and bike loan is best for you. Driva can help you compare loans from across our panel of more than 30 lenders, so you can be confident that you’re getting the best loan possible.

In terms of finding your motorcycle, there are a number of places you can start looking, including bike dealerships, auction houses and private sellers.

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    Finding your dream motorcycle

    Used bike dealership

    Shopping at a bike dealership is a great place to start, as you’re able to look at a wide range of bikes and speak to a professional about what bike is right for you. You will often be able search their online inventory, so you can take your time doing research and browse from the comfort of your home. The dealership will also be able to provide you with a bike history report, which details any repairs or accidents that the bike may have had. However, you also run the risk of encountering a pushy salesperson - so make sure you have a firm budget in mind and don’t make any rash decisions. 

    Private seller

    If you decide not to buy your bike from a dealership, you might instead look at a private seller. Private sellers will probably have more detailed knowledge of the history of the bike, but also be conscious that they might not disclose all details about the bike. It can be a good idea to ask the seller why they are letting go of their motorbike, and to find out if they have any issues or concerns with the condition of the bike. Private sellers often list their motorcycles online on places like Gumtree or

    Can you finance an old motorcycle?

    Yep! Whether you’re buying your motorcycle from a private seller, a second hand dealership, or an auction, we can organise bike finance for it from our panel of 30+ lenders.

    Get your lowest rate from 30+ lenders

    How much should you spend?

    There are a number of costs involved with buying a motorbike, and you should make sure you budget for these before you start shopping. 

    The biggest upfront cost is obviously the motorbike itself, and this will vary greatly depending on the age, condition and type of bike you’re looking at. 

    Additional costs you’ll need to consider include:

    • Petrol

    Although motorcycles are far more fuel-efficient than cars and other modes of transport, make sure you check the fuel consumption of your bike before purchasing it so you can factor this into your budget.

    • Insurance

    In order for your loan to settle with any of the secured loan lenders on our panel, you’ll have to obtain comprehensive insurance in addition to the legally required compulsory third party insurance.

    • Riding gear

    The main gear that you’ll need are a helmet, jacket, boots and gloves. Studies have found that wearing a helmet and other motorcycle gear reduces the risk of serious injury or death by 40% in the event of an accident. 

    • Maintenance and servicing

    You’ll also need to factor in the costs of maintaining and servicing your bike, which will vary depending on the condition of your bike. You’ll usually need to get your bike serviced between every 4000 – 6000kms, depending on the type of bike you have, or at least once a year if you don’t reach the distance thresholds before then.

    • Registration

    The process and cost of registering your motorcycle varies between states and territories, but, just like with a car, it’s a legal requirement.

    Applying for a motorcycle loan

    Once you’re ready to secure finance for your new bike, that’s where Driva comes in. To access your Driva dashboard and compare personalised rates, you’ll just need to tell us a couple of details about yourself and the motorcycle you’re wanting to buy. The process takes just minutes, and you don’t need to provide any documentation to view your personalised rates

    After viewing your pre-qualified rates, you’ll be able to choose your preferred lender from the personalised options available to you. Driva works with over 30 lenders to give you as many choices as possible so you can be certain you’ve made the right choice in lender. All of the options we provide are inclusive of all rates and fees, so there are no unwelcome surprises down the road. 

    Before we share your profile with lenders we’ll make sure your loan is likely to be approved, which will protect your credit rating. Getting your loan approved takes between 2 hours and 2 days depending on the lender. 

    What documentation do you need?

    To access your personalised quotes on the Driva dashboard you don’t need to provide any documentation at all. When you’re submitting your loan application for assessment, typically the only documents you’ll need on hand are your driver's license and your two most recent payslips. The Driva platform will be able to assist you in retrieving your bank statements digitally. In some cases we may require additional documentation, but we’ll let you know if and why we need it. 

    After your loan has been approved by the lender, we just need your vehicle sales invoice and proof if you’re getting a secured loan, proof of comprehensive insurance. 

    What credit score is needed to finance a motorcycle?

    The credit score needed to finance a motorcycle varies depending on the lender, but in most cases the higher your credit score, the better interest rates you’ll be able to access.

    Deciding on a lender for your new motorcycle

    Driva works with over 30 lenders to bring you as much choice as possible! On your Driva Dashboard you’ll be able to see which lenders you are likely to qualify for at what rate. Ultimately, the final choice on what lender to go with comes down to you, but if you’re looking for more information, feel free to get in touch with our friendly team. Give us a call on 1300 755 494 or email us at for a chat. 

    Getting pre-approval

    If you haven’t quite decided what motorbike you’re buying, Drive can help you get your loan pre-approval, so you can start shopping with a set budget in mind.

    If you’re getting a secured loan (this generally applies to newer motorbikes), the age of the bike you’re getting will have an impact on your interest rate. In this case, we’ll just make an estimate of the age and price of the bike you’re likely to buy - and we can change this later in the process if need be.

    Getting pre-approval doesn’t commit you to anything, and you’re always able to change the loan amount and/or vehicle details later on.

    Secured v unsecured loan

    If you’ve been looking into bike finance options, you’ve probably come across the terms secured and unsecured loans. 

    If you’re financing your motorbike with a secured loan, this means that you’re using your motorbike (or in some cases, another asset), as security against your loan. This gives your lender the peace of mind that, in the event you were no longer able to meet your repayment obligations, they could repossess the bike in order to recoup their funds. Because the lender sees your loan as being less risky, they often will provide you with a lower interest rate than if your loan was unsecured.

    By comparison, an unsecured loan means that your motorcycle loan is not secured against any asset. This means that you will probably encounter a higher interest rate, but also that the lender cannot simply repossess your motorbike if you are unable to meet your repayments (though they may commence legal action against you, which would be a messy process). 

    Depending on how old your used motorbike is, you may be eligible for a secured bike loan. The criteria will vary between lenders, but lenders will normally say that the motorbike needs to be less than a certain number of years old in order to be eligible for a secured loan.

    The Driva platform gives you access to secured AND unsecured bike loan products - and will automatically match you depending on your estimate of the age of the bike you want to buy and your personal profile.

    Learn more: Secured vs Unsecured Car Loan - A Complete Overview

    Things to avoid

    Buying a bike you can’t afford

    Before taking out a loan, make sure you have enough savings to pay for additional running costs like servicing, petrol and other day-to-day expenses. Driva helps take the guesswork out of budgeting, and can help you find out how much you’d be approved for based on your current income and expenses. 

    Rushing into a purchase

    The last thing you want to be doing is making a rushed decision on a bike and compromise your budget, or worse, your safety. It’s worth taking the time to weigh up your options and find your dream bike. Take the time to check the bike out in person, go for a test drive and, if necessary, have a mechanic take a look at it.

    Tips before you buy

    Take your time

    One of the biggest mistakes you can make when buying your used motorcycle is to rush into it. Make sure you take the time to weigh up your options, take your potential bike for a test drive and, if possible, get it checked out by a mechanic. The last thing you want is a nasty surprise as you’re riding out the door! If you shop around and wait for the right bike, you might find a seller who’s in a rush or willing to part ways at a very reasonable price.

    Check the motorbike’s history

    Before purchasing your motorbike, obtain a vehicle history report and check the bike’s vehicle identification number, to make sure there is no finance owing on the bike and that it hasn’t ever been stolen or written off. 

    Make sure you have comprehensive insurance

    To secure a loan with any of the lenders on our panel, you’ll need to make sure you have comprehensive insurance. Comprehensive motorcycle insurance covers all loss or damage to your vehicle, as well as any loss or damage to the other person’s property. You will need to obtain comprehensive motorcycle insurance in addition to the legally required compulsory third party insurance, which provides compensation for any injuries that occur to you or another person in the event of a road accident.

    Summing up

    Buying a second hand bike is really exciting, but before you secure your motorbike loan and hit the open roads, it’s important to do your research to make sure you’re as well informed as possible. 

    If you have any queries please get in touch with our team of motorbike finance experts here at Driva today on 1300 755 494. You can check out our motorcycle loan calculator tool or if you’re ready to obtain motorbike finance now, our smart vehicle finance platform allows you to access your best available rates from our panel of lenders in under 1 minute! The platform will automatically assess whether you are better suited to an unsecured or secured loan based on your personal situation and the vehicle you’re looking at - so use it now to find a motorcycle finance option that suits your needs. 

    Maddie Barclay

    Maddie is the Marketing Coordinator at Driva and our resident blog writer on all things car finance. When she’s not discussing the ins and outs of vehicle loans, you can probably find her at the beach or spending time with family and friends. 

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