Where you can get the best bike loan in Canada ?

Where you can get the best bike loan in Canada ? - Bikes are significantly less expensive than new cars, with the average new car costing more than $47,000 in 2022. Bikes, on the other hand, are still an expensive purchase. Bikes in good condition typically sell for $9,000 to $8,000. However, if you want a brand-new bike from a major manufacturer like Harley-Davidson, you should expect to pay much more. The average price of a new Harley-Davidson in 2023 is $24,985.24, based on the prices of their 34 models.

If you don't have the cash or don't want to take out so much money from the bank at once, bike loans are another option. There are several bike loan lenders who can help you loan your next purchase, whether you want to buy a used or new bike.

What Is an Appropriate Credit Score for a Bike Loan ?

Lenders will evaluate your application for a loan to purchase a bike based on your income, credit history, and credit score. Your credit score has a significant impact on whether you are approved and what interest rate the lender will offer you.

To qualify for a bike loan with competitive rates, you will typically need good to excellent credit. Good credit scores, according to Equifax, one of the three major credit bureaus, range between 670 and 850.

What is the bare minimum for obtaining a bike loan in Canada ?

Eligibility criteria vary by lender, but in general, you must meet the following four basic requirements to be considered eligible for bike financing:
  1. You must be at least the age of majority in your province or territory (either 18 or 19 years old).
  2. You must be a Canadian citizen or permanent resident.
  3. You must be a Canadian citizen or permanent resident in order to apply.
  4. You must have good to excellent credit, preferably at least 650.
  5. You must usually provide proof of income or have a cosigner who can provide proof of income; proof of income is especially important if you have no credit or a low credit score.

Can I Get a Loan for a Used Bike ?

Loans are available for both new and used bikes. Some automakers only provide financing for new models. Others, such as Harley-Davidson, offer special financing for used motorcycles.

If you are not eligible for manufacturer financing or want to compare rates from multiple lenders, you can usually find used bike loans and personal loans. Used bike loans are typically unsecured. As a result, some lenders charge higher interest rates and limit loan amounts.

In Canada, can you rent a bike ?

Yes, just like getting a car loan, there are several ways to get money for bike financing in Canada. The best option for you will be determined by your financial situation and credit, which will influence the interest rate and the amount your lender is willing to lend you. Here are some of the various bike financing options available to you.

1. Dealership credit.

Many bike dealerships provide financing. If you haven't been able to qualify for a loan elsewhere or simply want to keep everything in one place, it could be a good option.

2. Manufacturer funding

Manufacturers also provide financing for their bikes, either online or in-store. However, you may not get the best interest rate or loan terms if you go this route.

3. Online loan providers.

Some online lenders that provide car loans also allow you to use your funds for motorcycles and other related expenses such as licensing and registration.

4. Loans from banks and credit unions

Some lenders provide recreational vehicle loans, which typically have lower interest rates, but the application process can take longer.

5. Personal loans

A personal loan can be used to finance almost any purchase, including a bike.

How do I pick the best bike financing?

While deciding between all bike financing options in Canada can be difficult, asking yourself these questions can help make your decision easier.

1. How much money do you require?

When comparing bike financing options, check the minimum and maximum loan amounts set by lenders and only borrow what you need.

2. How long is the loan term?

Bike loans are typically good for two to three years. You may be able to find financing for as long as five years, depending on the model you choose. To see how the length of your loan term affects your monthly payment, use our monthly payment calculator.

3. Are you eligible for a secured or unsecured loan?

Secured loans use the value of your bike as collateral to protect the lender in the event of a default. Unsecured loans, on the other hand, necessitate a good credit score and can provide larger loans with more flexible payments.

4. What interest rate will you be offered?

Your credit history and whether you choose a fixed or variable loan determine your interest rate. Variable rates change with the prime lending rate (which can rise or fall at any time), whereas fixed rates are fixed for the life of the loan.

5. What fees will you have to pay?

To keep the loan active, lenders may charge fees either upfront or throughout the loan term. Before you sign on the dotted line, read the fine print and terms of your loan.

6. Can I make extra payments and repay the loan sooner?

Making extra payments when you can afford it is one way to reduce your loan's interest rate. If you believe you will be able to repay the debt early, make sure your lender allows it or does not charge any penalties.

Keep in mind before purchasing a bike in order to obtain a low-interest loan.

If you're going to sign a bike financing contract, keep the following suggestions in mind to ensure you get the right ride for your budget and wish list.

1. Determine the type of bike you desire.

There's a bike for everyone: Harley Davidson for cruisers, Ducati for speed, BMW touring bikes for longer trips, and scooters for getting around town.

2. Examine the engine's strength.

When shopping for a motorcycle, consider your skill level as well as the engine's cubic capacity (CC). "CCs" stands for cubic centimetres and refers to the amount of air and fuel that the engine's cylinders can suck in at once to pressurize, combust, and propel the bike. A larger engine and a smoother, more powerful ride are associated with a higher number of CCs, though the weight of the bike can offset the power produced by the engine. Higher CC bikes (generally between 1000cc and 1600cc) are best suited for experienced riders; if you're just starting out, 250 CCs should suffice.

3. Decide if you want a new or used bike

Consider the long-term commitment and whether you intend to ride for the foreseeable future. If this is your first bike, consider buying a used one and then upgrading when you're certain it's a hobby you'll enjoy.

4. Ride your bike.

Take the bike for a test ride before purchasing it, just as you would a car. Consider how well it handles, how fast it accelerates, and whether it makes any unusual noises.


Bikes are a great way to get out on the open road, but many models are more expensive than many riders can afford out of pocket. If this is the case for you, getting bike financing in Canada may be the solution.

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