A secured motorcycle loan is very similar to any other loan that uses an asset as a form of security.

When you’re looking at your options to purchase a motorbike, your choices are usually to pay cash, take out an unsecured loan or a secured loan.

While everyone has slightly different requirements in terms of what they need, there are some advantages to a secured loan.

Is a secured motorcycle loan worth it

More options

An unsecured motorcycle loan works the same way as a personal loan because you don’t need to put down the bike itself as collateral.

However, this might limit your options when it comes to what type of motorbike you’re able to purchase.

Generally, an unsecured loan might limit you to buying a second-hand bike that is worth less than $10,000. If you want something newer or more expensive, you may have to consider a secured loan.

In some instances, it is possible to use a guaranteed loan to help you get an unsecured loan however, this is less common.


Lower interest rates

Like most loans, if you’re prepared to put up some form of collateral it represents less risk to the lender, which generally means lower interest rates.

By paying lower interest rates with a secured loan, you can potentially buy a higher-priced bike and have similar levels of ongoing repayments.



By putting up your motorbike as collateral, the lender is then able to repossess it should you not meet your ongoing obligations.

However, even with a personal or unsecured loan, you are still required to make your repayments.