I remember dreaming about getting a motorcycle for years before actually buying one.
I watched all the YouTube videos, window-shopped at my local dealers a million times, and decided to get a million different bikes.
It still took more than 10 years to make that dream a reality.
And I quickly realized it wasn’t a matter of want but a matter of finances – I was broke.
I had never budgeted for a big purchase like that before, and every year I would just put the dream off until the next.
It wasn’t until I realized the importance of a budget that I was finally able to achieve my dream of owning a motorcycle and I kick myself all the time for not realizing this sooner.
Setting a budget for your first motorcycle is the best and fastest way to put a plan into action, and actually achieve your dream of owning a motorcycle.
All you gotta do is:
- Choose Your Motorcycle Type
- Estimate Your Motorcycle’s Cost
- Decide to Finance or Buy With Cash
- Consider the Cost of Gear, Insurance, Maintenance, and Licensing
- Put a Financial Plan into Place
Here is how you put that plan into action.
1. Choose Your Motorcycle Type
You probably already have an idea of what type of motorcycles you like.
If not, feel free to check out our Guide on How to Buy Your First Motorcycle.
But before we break into that, here are some tips for finding motorcycles in your budget.
Key Takeaways:
- “Beginner” motorcycles are cheaper to own, insure and maintain
- These are your 125cc-500cc motorcycles as well as most 650cc’s and cruisers
- Used motorcycles are where the deals are
- Stick to reliable brands and thank me later
For some specific recommendations, check out our list of the Top 10 Beginner Motorcycles.
Or our other Guide on The Easiest Motorcycles to Learn on.
While there are many types of motorcycles, these are the motorcycles I think are best for beginners:
A. Standard (Naked) Motorcycles
Standard motorcycles are known for their upright riding position, simple design, and versatility.
They’re great for beginners because they offer a great balance between comfort and performance, making them suitable for both city commuting and casual weekend rides.
- Pros: Comfortable riding position, low maintenance, versatile for various types of riding.
- Estimated Price Range: $4,000 to $8,000 for entry-level models.
B. Cruiser Motorcycles
Cruisers are designed for relaxed, laid-back rides, with a low seat height and higher handlebars.
Some cruisers can be heavier, which might take some getting used to, but their stable design and lower power make them manageable for beginners.
- Pros: Comfortable seating, relaxed riding experience, visually appealing.
- Estimated Price Range: $5,000 to $12,000, depending on brand and model.
C. Dual-Sport Motorcycles
Dual-sport motorcycles are incredibly versatile, built for both paved roads and off-road terrains.
They’re great for riders who want to experience a range of environments, from city streets to forest trails.
- Pros: Versatile for on and off-road, good for long distances, robust build.
- Estimated Price Range: $6,000 to $12,000 for beginner-friendly models.
Choosing the right motorcycle type can also save you money, as some styles are more affordable to maintain and insure than others, making them a good choice for beginners.
2. Estimate Your Motorcycle’s Cost
Now that you have an idea of the type of motorcycles you like, you can start researching to see what your budget should look like.
But keep in mind you don’t want to spend a lot, so it’s a good idea to know how much a beginner motorcycle should cost.
If you’re looking for a way to save, check out our Guide on How to Find Deals on Motorcycles.
Research Different Models and Average Costs
Try to find beginner-friendly models that you like.
Websites like CycleTrader, Facebook Marketplace, or your local dealership’s site can give you an idea of prices for both new and used models.
It’s not fun, be you have to be realistic about your budget.
When I first started looking, the motorcycles I liked were twice the cost of what I could afford, so I had to go cheaper.
But trust me, I would’ve been happy with the $500 Marketplace special. No matter what you get, it is virtually impossible to not love your first motorcycle.
After a few weeks of looking around, you will have narrowed down a few different options as well as a general budget for the cost of a motorcycle.
Pro Tip: Don’t rush the research process. Saving up takes time but time is on your side because the longer you look, the better deals you will find
New vs Used Motorcycles
This is also a good time to mention buying new or used.
A lot of people would recommend buying used for your first bike but don’t let that discourage you from buying a new one.
Here are some pros and cons to both options:
New Motorcycles
Pros:
- Warranty: Comes with a manufacturer’s warranty and support.
- Latest Technology: Equipped with the latest features and technology.
- Peace of Mind: Trust that the motorcycle is mechanically safe and sound.
- Knowing you are the only rider.
Cons:
- Cost: More expensive due to being brand new and including dealership fees.
- Depreciation: Loses value quickly in the first few years.
- Insurance: Higher insurance costs compared to used bikes.
- Does hurt more when you drop it.
Used Motorcycles
Pros:
- Cost: Lower purchase price compared to a new bike.
- Depreciation: Slower depreciation, retaining value better over time.
- Insurance: Lower insurance premiums due to reduced value.
Cons:
- Warranty: May not come with a warranty, leading to potential repair costs.
- Condition: Varies widely; potential for hidden issues or necessary repairs.
- Outdated Technology: Might lack the latest features and technology advancements.
If you do decide to go the used route, make sure you check out our Guide on How to Inspect a Used Motorcycle.
Pro Tip: Buying a used motorcycle from a new or used dealer is a great way to get the best of both worlds. Lower cost and peace of mind.
Again, feel free to check out our Guide on How to Find Deals on a Motorcycle.
3. Decide to Finance or Buy With Cash
There are two ways you can look at the cost of your first motorcycle – either financing the purchase or buying the motorcycle outright.
And after this step, you will know two things;
- How long it will take to afford your motorcycle
- or How much your motorcycle will cost each month
Some people will say that you should never finance your first motorcycle, but I disagree.
Mature, responsible riders can choose to finance their motorcycle if they are aware of the added costs and responsibility.
Here are some things to know about each option:
Financing
If you have a steady income and are responsible with the bills you have now, there’s a good chance you can manage a motorcycle payment.
Just keep these things in mind:
- Financing usually requires full coverage insurance
- You will be paying more overtime
- Faster depreciation when you buy new
- Motorcycles are considered “recreational” and have stricter/higher costs to finance
- Yes, it does hurt more when you drop a new bike vs a used one
Pro Tip: You can buy a used motorcycle from a new dealership and save on costs while getting the piece of mind you get when buying new.
Buying in Cash
Buying in cash opens the gates to better deals because you can buy from private sellers.
Just take a look on Facebook Marketplace and you will see so many bikes whose riders are upside down in payments or just decided to stop riding altogether.
You know what this means for you? Great Deals on a Motorcycle.
But this also comes with a few challenges.
Used motorcycles come with added risks like:
- Safety concerns
- Mechanical issues
- Title and VIN issues
- Questionable maintenance
You should only go this route if you have someone who knows enough about motorcycles to spot a deal or a lemon. You can also buy from a trusted seller.
Pro Tip: Buying a used motorcycle from a new dealership is a good middle ground between cost and quality, however, you can also secure financing at your local bank or credit union to buy from private sellers.
4. Consider the Cost of Gear, Insurance, Maintenance, and Licensing
One of the biggest mistakes new riders make is only thinking about the cost of the motorcycle and not saving anything for Gear, Insurance, and Maintenance.
I actually made this same mistake and was riding around like a squid for a month.
Most people underestimate how much it costs to ride a motorcycle.
And this is not just due to how expensive motorcycles are, you also have to consider the costs below.
Motorcycle Gear
Motorcycle gear is expensive and can easily run you $500-$1000 for the basics. Here are some general costs you can expect:
- Helmet – $200
- Gloves – $50
- Boots – $200
- Jacket – $200
- Pants – $200
You can find budget options but don’t forget to save for gear, it’s the only protection you have on the bike!
Check out this Guide for Beginner Motorcycle Gear on a Budget.
Insurance
Another common mistake? A lot of new riders forget to consider the cost of insurance.
Yeah, you may be able to get the $500 marketplace special R1 running, but your insurance company is going to make you regret it.
Motorcycle Insurance rates skyrocket for younger riders, powerful motorcycles, or expensive motorcycles.
Tips for saving on Motorcycle Insurance:
- Stick to beginner motorcycles like 300-500cc and some 650cc models
- Avoid expensive motorcycles and brands
- Avoid financing your motorcycle
- Avoid Sportbikes
- Be older than 21 (or join your parent’s insurance policy)
Whatever you do, don’t make the mistake of skipping out on insurance. Not only is this illegal in most states, but you can be in a world of financial hurt if you wreck your bike.
Maintenance
It keeps going.
Another cost new riders forget to consider? Maintenance.
Between oil changes, tires, and common repairs, motorcycles can be expensive to maintain.
These costs also skyrocket the minute you decide to get a more powerful, expensive motorcycle.
And as always, sticking to “beginner” motorcycles will keep these costs low.
Starter bikes have smaller, cheaper tires. They require less oil and cheaper basic maintenance. And all their parts are cheaper to replace in case you need repairs.
Similar to insurance, you can save money on maintenance by:
- Sticking to beginner motorcycles like 300-500cc and some 650cc models
- Avoiding expensive motorcycles and brands
- Avoiding new motorcycles
Pro Tip: Buying from a used or new dealer helps start a relationship, and save money by having your motorcycle serviced by the same dealer.
Licensing and Courses
Finally, you also have to consider the cost to get your license and potentially for the MSF course as well.
I actually recommend that everyone take the MSF course, which is around $200-400.
But, you can always opt for the cheaper option of taking the test at the DMV.
Just remember to ride safe and practice.
5. Put a Financial Plan into Place
Here’s a step-by-step guide on creating a realistic financial plan—whether you’re saving, financing, or looking for a loan.
This approach will help you stay organized and make smart financial choices, so you can enjoy your first bike without unexpected financial strain.
1. Start Saving Early with a Dedicated Motorcycle Fund
Setting up a separate savings account specifically for your motorcycle fund is a smart move. Here’s how to keep your savings on track:
- Set a Monthly Savings Target: Look at your budget and decide how much you can set aside each month. Even small contributions add up over time.
- Automate Your Savings: Set up automatic transfers from your main account to your motorcycle fund. It’s a simple way to build your fund consistently.
- Consider a High-Yield Account: A high-yield savings or money market account can add interest to your funds and get you closer to your goal.
2. Explore Financing Options to Spread Out Costs
Financing can help you spread out the costs of your motorcycle purchase. Here’s how to navigate financing to stay within budget:
- Check Dealer Programs: Many dealers offer financing specifically for first-time buyers with promotional rates. Be sure to check the terms, including interest rates and required down payments.
- Consider a Personal Loan: Personal loans from banks or credit unions can be another flexible choice, often with competitive rates if you have good credit.
- Set a Payment Limit: Determine how much you can comfortably pay each month for a loan, including insurance and maintenance, aiming to keep payments at around 10-15% of your income.
Conclusion
Budgeting for your first motorcycle is about more than just the price tag—it’s about preparing for the unexpected.
Factoring in additional costs like insurance, maintenance, and gear will help you avoid financial strain and ensure you’re ready for anything that comes your way.
Proper budgeting also gives you peace of mind, allowing you to focus on learning and enjoying your riding experience without worrying about surprise expenses.
With a clear, well-thought-out financial plan, you can make the most of your motorcycle journey, enjoying every ride safely and confidently.