Motorcycle Finance Calculator

There are a number of things that lenders will look at when calculating your interest rate, and here are a few of our top tips when it comes to finding the most competitive rate for you:

• Maintain a good credit score. One of the key factors that lenders will look at is your credit score. You can maintain a good credit score by meeting all of your existing debt obligations in full and on time.
• Choose a newer bike. Although the outright cost will be higher, bikes that are brand new or near new generally tend to attract lower interest rates.
• Have savings in your bank account. Lenders will also check your bank statement when they’re pricing your loan, and by having savings in your account you’ll likely be perceived as a lower risk customer. 

Speak to a member of the Driva team. If you’ve got any questions about the loan process and would like to chat to one of our finance professionals, feel free to get in touch!

Just like with a car loan, a secured motorcycle loan means that your loan is secured against an asset, in this case, the asset would be your new motorcycle. In the event that you default on your loan, the lender will be able to repossess the bike in order to recover its funds. Because this type of loan gives the lender a large amount of security, interest rates are much lower than with unsecured loans.

By comparison, an unsecured loan means that your loan is not secured against any asset. This makes your loan a higher risk and, in turn, lenders will pass on a higher interest rate to compensate for this risk. Secured loans are typically most suitable for newer motorbikes, while unsecured loans are more suitable for older and used motorcycles.

Our motorbike repayment calculator can help you work out your monthly payment options available with motorcycle financing. We've also got a car loan calculator available if you're more interested in a four-wheeled vehicle!

The eligibility criteria for bike loans varies between lenders, but in most cases you’ll need to be over the age of 18, earning some form of income and be either an Australian citizen or permanent resident. You’ll also, obviously, need to have your motorcycle licence.

To submit an application for assessment, the only documents you’ll need to provide are your driver’s licence and copies of your two most recent payslips. You’ll also need to provide a recent bank statement, but we can help you access this online for free, without the hassle of contacting your bank. In some cases, we might require a couple of extra documents, but we’ll let you know if and when this is necessary for you.

An APR, or annual percentage rate, is the lender quoted rate that you’ll be charged on your loan amount. This rate does not include any lender fees (early repayment fees etc) and charges, so it’s important to be wary that this figure can be quite misleading. Instead, Driva recommends considering comparison rates as the key metric when comparing loans. Unlike APR, comparison rates include nearly all the fees that lenders will charge (excluding fees like stamp duty), so it is a much more reliable indicator of how much you can expect to pay in total on your loan.

Our bike loan calculator can give you an indication of how much you could expect to pay per month with a motorcycle loan through a credit provider.

Absolutely. If you’d prefer to start shopping for a motorcycle with a set limit of what you can spend, a pre-approved motorcycle loan could be a great option for you. If successful, you’ll be pre-approved for a certain loan amount at a fixed interest rate, so you can start looking for your dream bike with the confidence that you’ll be able to afford it. Your pre-approval period cannot be longer than 90 days. After this time has lapsed, you’ll need to start the pre-approval process again.

This depends on the lender. Some lenders allow for co-applicants, which means you can put another person, normally a partner or a child, as a co-applicant on the loan. Keep in mind that they’ll assess both parties’ income expenses and credit scores when considering the application.

If you’re looking for motorcycle finance, Driva has a number of finance options available. These include:

• Secured motorcycle loan. Secured loans are our most popular finance product. They will require you to make regular repayments plus interest to your lender. Because your loan will be secured against your bike, you’ll be able to access lower interest rates. They are most suitable for newer bikes.
• Unsecured motorcycle loan. If you’re considering buying an older or used bike, you’ll likely be looking at an unsecured loan. As your bike won’t be used as collateral, your interest rate will be a bit higher than a secured loan.
• Commercial loan. If you’re planning on using your motorcycle for business purposes at least 50% of the time, you may be eligible for a commercial loan with Driva.

There are a number of costs associated with owning a motorcycle that you’ll need to factor in before buying a bike. Depending on how experienced you are, the type of bike you’re looking for and whether you are wanting to buy new or second hand, you could expect to spend anything from $5,000 to upwards of $40,000. Aside from the cost of the motorcycle itself, you’ll incur a number of running costs. These will likely include registration, insurance, petrol, maintenance and servicing, repair costs, safety gear, roadside assistance and toll road costs.

Learn more: The Cost of Owning a Motorcycle

In order for your loan to settle with any of the lenders on our panel, you’ll need to secure comprehensive insurance. Comprehensive insurance covers all loss or damage to your vehicle, as well as to another person’s property, in the event of a road accident. You’ll need to get comprehensive insurance in addition to the legally required compulsory third party insurance, which provides compensation for any injuries in the event of an accident.

Nope! When you compare loans and get your personalised quotes through Driva’s smart financing platform, we run what’s called a ‘soft credit check’. This allows us to access the credit score that lenders use to price your loan without recording an enquiry on your file. We won’t share your profile until you’ve decided which lender you’d like to go with, and we’ve made sure that you meet the lending criteria and that your loan application is likely to be approved.

Driva's smart financing platform will present you with your best rates based on your profile, but you’ll ultimately decide which lender you want to go with. There are a number of factors that might influence your decision on which lender to choose.

• How long does your loan term need to be? Keep in mind that although a longer loan term will mean that your monthly repayments are smaller, it also means that you’ll end up paying more over the life of the loan.
• Do you want a secured or unsecured loan? Depending on the age of the bike, this decision might be made for you. Often newer bikes (2013 or later) are best suited to secured loans, and older bikes (2012 or earlier) are used for unsecured loans.
• What are my fees? Make sure you’re comparing comparison rates (rather than APRs) to get a more accurate idea of how much your loan will cost you.
• What is your interest rate?  Interest rates will vary significantly depending on factors like the age of the bike and your credit history. All of the motorbike finance options that Driva facilitates are fixed rate, so your monthly or weekly repayments won’t change over the life of the loan.
• Can I afford it? This is the most important question you need to ask yourself. If you can’t afford to meet your loan repayments, you’ll either have your bike repossessed or you’ll face legal action.
• What loan amount do you need? With our bike loan calculator, you can find out the minimum and maximum loan amount available for different lenders, so you can make sure you’re able to borrow the amount you need to.

We work with a panel of over 30 lenders, including traditional finance lenders and non-bank lenders, so you can be sure that you’re getting the best rate possible. If you’ve still got questions, our friendly team of motorcycle finance experts are happy to help! Email us at contact@driva.com.au or give us a call on 1300 755 494 to chat with a finance specialist.

When it comes to finding the perfect motorcycle, there are a few things you should keep in mind.

• What do you need it for?
• Are you an experienced rider?
• How much do you want to spend?
• Do you want to buy new or second hand?

It’s also always a good idea to take the bike for a test drive before making your final decision.

Driva works with a panel of more than 30 lenders, including several who are able to offer finance to customers with lower credit scores. To check out your finance options, without impacting your credit score, get your personalised quotes here.

From our panel of over 30 lenders, we have interest rates available from 3.96% (4.90% comparison rate) up to 19.95% (26.64% comparison rate). If you’re looking for a commercial loan, we have rates from 3.78% (4.89% comparison rate) up to 16% (20.45%).

The length of your loan term will depend on which lender you go with, but normally you’ll be able to get finance for a period of between 1 and 7 years.

Driva takes the hard work out of motorbike finance to make the entire process as transparent and seamless as possible. Getting your personalised rates takes less than two minutes, and once you’ve chosen your preferred lender, getting approved normally takes between two hours and two days.

If you’re looking for motorcycle finance, Driva has a number of bike loan options available. These include:

• Secured motorcycle loan. Secured loans are our most popular finance product. They will require you to make regular repayments plus interest to your lender. Because your loan will be secured against your bike, you’ll be able to access lower rates. They are most suitable for newer bikes.
• Unsecured motorcycle loan. If you’re considering buying an older or used bike, you’ll likely be looking at an unsecured loan. As your bike won’t be used as collateral, your interest rate will be a bit higher than a secured loan. These work in the same way as personal loans.
• Commercial loan. If you’re planning on using your motorcycle for business purposes at least 50% of the time, you may be eligible for a commercial loan with Driva. 

With all of these options, you’ll need to make regular repayments (plus interest) to your lender in order to pay back the loan. These payments are normally monthly, but you can chat to your lender about a different repayment frequency. 

When looking into how much to spend on a vehicle be sure to consider all your options. If you’ve got the cash on hand to buy your bike outright, then this will be the cheapest overall finance option. However, we know that this isn’t an option for everyone! You can also look into dealer finance options, but these can be a bit misleading. Loans with extremely low-interest rates might seem enticing, but be wary that the price of the bike could be inflated and there could be extra fees involved.