Should I Get a Motorcycle Lease?
Motorcycle leasing is comparable to car leasing. You will pay monthly for the right to ride the bike of your choice over a period of time.
Motorcycle leases, on the other hand, are not as common as car leases. You will not find a leasing program at many dealerships. For example, even within the Harley-Davidson franchise, leasing may be available in one location but not in another.
Even if your credit isn’t perfect, you might be able to get a motorcycle lease. However, a high-interest rate or a large down payment may be required as a trade-off. Leasing may not be the best option for everyone for these reasons.
What is a motorcycle lease?
A motorcycle lease, like an auto lease, allows you to drive the vehicle without purchasing it. You can renew the lease, return the bike, buy it, or trade it in for another one at the end of the lease.
Motorcycle lease terms typically range from 18 to 60 months, and you may be able to lease either a new or used motorcycle.
Here are some additional details about motorcycle leasing that you should be aware of.
Availability: Motorcycle leases through dealerships aren’t common in the United States, but they do exist. Motorcycle leases are also available from financing companies such as Moto Lease, in addition to dealerships.
Cost: Motorcycle leasing can be costly. You may be required to put down 10% to 20%, and your interest rate will vary depending on your credit. In general, the better your credit, the lower your interest rate.
Unlimited mileage: Unlike an auto lease, a motorcycle lease usually has no mileage restrictions.
Motorcycle loans vs. leases
Both motorcycle leases and motorcycle loans have advantages and disadvantages. Let’s contrast the two possibilities.
Availability
Because motorcycle leases aren’t as common as motorcycle loans, you might be unable to lease directly from motorcycle dealers. Honda, Harley-Davidson, Ducati, and BMW, for example, all provide motorcycle loans. Only Harley-Davidson provides motorcycle leasing, but not in all locations.
Credit requirements
Even if you have bad credit, you may be able to get approved for a motorcycle lease. While this is also possible with motorcycle loans, be wary of “buy here, pay here” loans, which frequently have high-interest rates and unfavorable loan terms.
Overall cost
Motorcycle leases may cost more than motorcycle loans. If you have good credit, financing a motorcycle may make more sense than leasing one because you may qualify for a lower interest rate.
Also, keep in mind that you will not own the motorcycle at the end of your lease. You’ll need to renew your lease, rent another bike, purchase one, or find alternative transportation.
Is a motorcycle lease right for you?
A motorcycle lease may not be the best option for everyone. If you can afford to buy a motorcycle outright or have good credit, buying may be less expensive than leasing.
However, in these two scenarios, motorcycle leasing may be a good option.
You have credit challenges
Leasing could be a good option if you’re trying to build or rebuild your credit. Consider a motorcycle lease to be a second chance loan. The disadvantages are that you may have to pay a high-interest rate and make a large down payment.
You drive a lot and want a different bike every few years
If you plan on putting a lot of miles on your bike and prefer to drive a new one every few years, leasing can be a great option. Lease programs with no mileage restrictions are frequently available.
What kind of credit score is needed to finance a Harley-Davidson?
Harley-Davidson dealerships offer loans on both new and used models, with the majority of customers qualifying for interest rates as low as 3.49%. There is no minimum credit score required to be approved for a loan, and military members may be eligible for lower interest rates, flexible term options, and no down payment.
Who has the easiest motorcycle financing?
Horsepower Finance is our top overall motorcycle loan lender because it provides unsecured loans with low-interest rates and allows you to borrow between $5,000 and $100,000.
What credit score is needed to finance a motorcycle?
Motorcycle financing typically requires a credit score of 620 or higher. If your credit score is less than 620, you may still be able to find a lender willing to work with you.
Does financing a motorcycle build credit?
Repaying a used-motorcycle loan, like an auto loan, can help you build credit. Your used-motorcycle loan can help you build a positive payment history and a more complete credit profile, both of which can help improve your credit health if you make your payments on time.
What is a good credit score?
Repaying a used-motorcycle loan, like an auto loan, can help you build credit. Your used-motorcycle loan can help you build a positive payment history and a more complete credit profile, both of which can help improve your credit health if you make your payments on time.
What is a down payment for the bike?
It ranges from 15% to 30%* of the value of the two-wheeler. The down payment is solely determined by the cost of the bike and your ability to repay. It is advisable to make a down payment in order to obtain lower EMIs on a bike loan.
Can you use a credit card for a down payment on a motorcycle?
A new motorcycle can be an expensive purchase, though not as large as a car or truck. This means that there are a few more financing options available than with other vehicles, including the use of a credit card.
Bottom line
Whether a motorcycle lease is right for you ultimately depends on your personal situation, particularly your credit and driving habits.
Consider your needs and create a budget before deciding to lease. This will help you determine whether a motorcycle lease is a good fit for your lifestyle and finances, or if you should pursue a different financing option instead.
