Financing a motorcycle: what makes sense?
Whether Harley, BMW or Kawasaki, financing a motorcycle can blow your budget. Comparis shows what options are available for financing a motorcycle.
13.07.2023
Adobe Stock / prostooleh
1. What are my options when financing a motorcycle?
Have you found your dream motorcycle? Then you need to decide how you want to finance it. The following options are available to you when financing your motorcycle:
Purchasing with your own funds (e.g. cash or bank transfer)
Leasing the motorcycle
Taking out a personal loan for the motorcycle
Do you already have motorcycle liability insurance?
Motorcycle liability insurance is compulsory in Switzerland. You are not allowed to drive a motorcycle without it. The services provided by most insurance companies are similar. Differences exist mainly in the price. This means it’s worth comparing the options.
2. When is it worthwhile financing a motorcycle with my own funds?
If you have saved enough money, you can finance the motorcycle yourself. This is the cheapest financing method when compared to leases and loans. This is because there are additional costs associated with leases and loans.
It is especially worthwhile financing a motorcycle with your own funds if
you want to own and use the motorcycle for a long time,
you buy a used motorcycle,
are solvent (that is, you have enough money to afford it),
the purchase doesn’t put you into financial difficulty.
3. Should I take out a loan for a motorcycle?
Don’t have enough money for a motorcycle? In this case a personal loan can make sense. Interest is charged on the loan. You must repay the loan amount after a contractually agreed period.
| Advantages of personal loans for motorcycles | Disadvantages of personal loans for motorcycles |
|---|---|
| The motorcycle belongs to you. | You bear the loss of value when selling the motorcycle. |
| Interest on debts can be deducted from your taxes. | You need to take care of the sale of the motorcycle yourself and can not just switch to a new model. |
| You can repay the loan early at any time. | A personal loan with a reputable provider is only possible if you have a good credit rating. |
| There are no additional costs when terminating the contract. | Monthly interest rates can be high depending on your credit score. |
| The motorcycle is not tied to any financing agreement. |
Motorcycle loan calculator: financing calculations for motorcycles
With the Comparis loan calculator you can calculate the interest costs for your loan. Do you need help with borrowing? A lender such as Credaris can show you which lender is most likely to grant you a loan and at what conditions.
4. Should I lease a motorcycle?
Leasing is comparable to a rental agreement. You pay monthly installments to use the motorcycle – but the motorcycle still belongs to the leasing provider, not you.
Depending on the contract conditions, it is possible to buy the motorcycle after the lease has expired. To do this, you must insist on the right of first refusal when concluding the contract.
Leasing a motorcycle: is this a good idea?
| Advantages of leasing a motorcycle | Disadvantages of leasing a motorcycle |
|---|---|
| At the end of the term, you can easily and flexibly switch to a new model. | A change of keeper is not possible and in some instances you may not be able to lend the motorcycle to third parties. |
| You do not have to worry about selling the motorcycle. | The leasing provider will tell you in which garage any services need to be performed. |
| Motorcycle financing is in some instances possible without a deposit. | In case of early exit or excess mileage be prepared for additional costs. |
Leasing can be suitable for people who value short terms and do not want to own the motorcycle themselves. Leasing can be especially useful if you want to drive new models on a regular basis. For everyone else, financing through a personal loan usually has more advantages.
Motorcycle leasing costs: what can I expect?
When leasing, full casco insurance for the motorcycle is compulsory in the vast majority of cases. In addition to the monthly leasing rates, there may be additional costs for the motorcycle.
An early exit causes additional costs due to retroactively higher lease rates. If you do not adhere to the contractually agreed mileage, expect to have additional costs for excess mileage.
This article was first published on 07.05.2014
