There’s a lot of contention on whether or not new riders should finance, or buy their first motorcycle outright.
On one hand, buying outright will always be the safest option and it’s one of the best ways to find a deal on a motorcycle.
On the other hand, financing can help you afford a better motorcycle, or help you get started faster.
But how do you know what the best option is for your situation?
This article is designed to help you decide, along with a few tips and suggestions we have here at Hobby Biker.
Key Takeaways
- Assess your financial situation honestly before deciding to finance or buy outright.
- If you lack steady income or financial experience, buying a motorcycle outright is often the safer choice.
- Financing may allow you to afford a better motorcycle, but it comes with risks like interest payments and monthly obligations.
- Your credit score significantly impacts your financing options and the cost of borrowing.
- Riders new to managing monthly payments should carefully consider their ability to handle the commitment.
- Buying outright saves money in the long run, while financing can help build credit if managed responsibly.
- Always factor in hidden costs of ownership—gear, insurance, maintenance, and registration—before committing.
For a more detailed guide, check out our article on How to Buy Your First Motorcycle.
Understanding Your Financial Situation
First things first, you need to review your current financial situation.
Here are some of the factors you should consider:
Income
In most cases, you’re kind of locked out of Financing unless you can prove you have a steady income.
There are ways to get around this but it’s not always recommended since you can easily land yourself in financial trouble.
If you don’t have a steady income and instead, you are saving up for your first motorcycle, you may be better off finding a cheaper motorcycle to buy outright.
It’s not as glamorous and you will put a little more effort into finding the right bike, but trust me, it’s worth it.
And don’t get discouraged, you can save a lot quicker than you think with a solid plan.
For some help getting started, check out our guide on How to Budget for Your First Motorcycle.
Credit Score
Credit Score is another big one.
Unlike a car, a motorcycle is considered to be a “recreational vehicle”, so financing options will be more limited and likely at a steeper cost when compared.
If you are just getting your credit started, or you have a lower score, you can expect to pay higher costs to finance a motorcycle.
Financial Maturity and Experience
Finally, you should really consider your Financial Maturity and Experience.
A motorcycle is a big commitment, especially if you plan to pay for it over time.
If you haven’t had experience making a monthly payment before, or if you don’t have the means to keep up with the payments, you’re 100 percent better off saving up and buying a motorcycle outright.
I’ve seen riders finance their first motorcycle only to drop the hobby within the year, and I’ve also seen riders finance who are still riding the same bike years later.
It really comes down to your own personal situation and accountability to yourself.
Just remember to be honest with yourself and don’t let the excitement of getting a motorcycle land you in financial trouble.
Buying a Motorcycle Outright
So how do you know if you are better off buying a motorcycle outright?
Here are some of the pros and cons, as well as some suggestions on which riders will benefit from buying outright.
Advantages
- Full ownership from day one.
- No interest payments or debt obligations.
- Potential for better negotiation on price.
Disadvantages
- Large upfront cash requirement.
- May limit options to less expensive motorcycles.
Considerations
Buying outright works great for riders who:
- Want to save money
- Want to avoid monthly payments
- May not have experience with monthly payments or saving money
- Prefer owning their motorcycle from day one
Financing a Motorcycle
What about financing your first motorcycle?
Here are some of the pros and cons along with a few considerations for the types of riders who would benefit from this option.
Advantages
- Ability to purchase a more expensive or newer model.
- Spreading the cost over time.
- Potential to build credit history with timely payments.
Disadvantages
- Interest payments increase the total cost.
- Risk of negative equity.
- Obligation to monthly payments affecting financial flexibility.
Considerations
Financing a motorcycle works great for riders who:
- Are financially responsible
- Want the option for a better or more expensive motorcycle
- Understand the added costs and risks
Conclusion
Deciding whether to finance or buy your first motorcycle outright ultimately depends on your personal financial situation, goals, and riding plans.
Both options come with their own sets of advantages and disadvantages, so it’s important to weigh these carefully and honestly assess your financial readiness.
If you value financial safety, want to avoid debt, and prefer the satisfaction of full ownership from day one, buying outright might be the right choice for you.
However, if you’re eager to ride sooner or want access to a higher-quality bike while building your credit, financing can be a viable option—provided you approach it responsibly.
At the end of the day, the most important thing is to make a decision that aligns with your financial situation and ensures you can fully enjoy your riding experience without unnecessary stress.
Remember, your first motorcycle is just the start of your journey.
Make it a smart and rewarding one.