Should You Buy or Lease a Motorcycle?
If you dream of heading out on the open highway, can you lease a motorcycle, or do you need to buy or rent it?
Yes, you can lease, but whether it’s a good idea depends on how long you want the bike, how much you can spend and other factors.
- Leasing a motorcycle can cost less than buying it.
- Motorcycle leases also let you get a new bike every few years without worrying about maintenance.
- But your lease payments won’t go toward buying the motorcycle, and you might not be able to modify it as you see fit.
Can you lease a motorcycle?
Leasing a motorcycle is possible, although it’s not as common as buying.
Like with leasing a car, you’re not paying for the entire cost of the motorcycle, but just for an amount roughly equal to the bike’s depreciation for that time period.
But unlike most car leases, a motorcycle lease usually has no mileage limitations.
Still, sometimes buying the bike with a motorcycle loan is a better idea, especially if you want it longer than a typical lease term (which usually range from 18 months to five years). It could also be a bad idea if you plan to make upgrades to the motorcycle, since you’ll have to remove them before the end of the lease.
Motorcycle lease vs. motorcycle loan
| Pros | Cons | |
|---|---|---|
| Motorcycle lease | Payments usually lower than with a loan Access to a new bike every couple of years Generally no mileage restrictions | Lower availability Customization of your bike is restricted No ownership or equity |
| Motorcycle loan | Full ownership once the loan is paid Possible buyer incentives/deals Full control over customization (though sometime not until the loan is paid) | May need high credit score to qualify for best rates Monthly cost is usually higher Depreciation eats into the value of the bike |
Probably the biggest disadvantage of leasing a motorcycle over buying is that you’re never really the true owner. That’s why you can’t make any modifications to it. You’re essentially just renting it from the leasing company until the end of the term.
But sometimes the advantages of leasing outweigh this. Unlike with buying, you’re free to return the motorcycle at the end of the lease if you no longer like it. Instead, you can use leasing to get a new bike every few years, enjoying the latest and greatest models.
You’ll also probably have lower monthly payments, and you’ll always be under the original manufacturer’s warranty if you only lease for up to a 36-month period.
Leasing a motorcycle can be a great idea for someone who wants to ride a new bike every few years, wants lower monthly payments or wants to always be covered by the original manufacturer’s warranty.
How to lease a motorcycle
- Decide on a budget. Figure out how much you want to spend on a motorcycle before you go anywhere near a dealership. Otherwise, it’s far too easy to fall prey to “upgrading” to the latest and greatest bike with add-on features.
- Choose a bike. Do some research to find a motorcycle that fits your needs but is still within your budget.
- Apply for a lease. With some financing companies, you can get approved in less than a minute through a simple online application. Make sure you have your personal and financial info handy (including Social Security number and proof of income).
- Negotiate. If you know what you want and what you can afford, you’ll have the upper hand in any negotiation. Just like with buying a bike, you should try to get the best deal possible.
- Sign the lease. Once you’ve got the bike and lease terms that you want, you’ll sign the contract and ride off into the sunset.
Where to find a motorcycle lease
Motorcycle lease financing is usually found at participating dealers, or you may be able to apply online. Lease terms commonly run from 18 to 60 months. If you have a certain bike in mind and want to lease, call the motorcycle dealer ahead of time to check on any available leasing programs.
MotoLease
MotoLease is an independent motorcycle leasing company that contracts with different dealers to help finance leases. Even if you find a bike at a dealer that doesn’t use MotoLease, you might still be able to lease it (or any new or used powersport vehicle) through the lender.
MotoLease offers terms of 18 to 60 months, although leases can be paid off early with no penalty. The company says its financing approval rate is 90%.
It has leases for vehicles up to $20,000 in value, but if you’re looking for a higher-end motorcycle, you may have to offer a trade-in or a higher down payment to get the amount financed under the limit.
You can apply online at MotoLease without your inquiry affecting your credit score.
Horsepower Financial
Horsepower Financial is a powersport leasing company that specializes in working with Harley-Davidson dealers. You can apply either through Horsepower Financial directly or via one of its participating dealers.
The company doesn’t require a FICO score to apply and promises quick online approval. It finances both classic and new motorcycle brands.
Speed Leasing
Speed leasing is also focused on Harley-Davidson, offering new and used Harley leases through its network of over 400 dealers.
There is no required minimum credit score and no mileage limitations, with terms ranging up to 60 months. However, Speed Leasing doesn’t operate in all 50 states.
Dealer Financing
Another drawback of motorcycle leasing is that it can be hard to find, especially directly through a dealer.
Honda offers motorcycle leasing through its Honda Financial Services division, but beyond that, you may have to search by dealer.
Alternatives to motorcycle leasing
Pay cash
Cash is king, and almost all dealers will accept an upfront cash payment covering the entire lease instead of making the regular monthly payments. This way, you won’t have to pay interest, although don’t forget the taxes and fees.
Financing
As discussed above, buying your bike with motorcycle financing is more likely to get you special rates, cash back offers or other incentives. If you know you’re going to keep your bike for the long run, financing will cost less over time.
If you decide to buy your motorcycle, make sure to shop around and look at different lenders to find the right one for you. Try our motorcycle loan calculator to compare offers from up to five lenders at once.
Renting
If you just want to try out a motorcycle to see if you like it, you can rent a bike for a short period of time, just like with a car.
Renting can also be a good option if you only need a bike for a vacation or road trip, though a lease may be a better deal for longer periods.
Balloon loans
If you’ve got an excellent credit score and want a high-end bike, you might be able to snag a balloon loan through some premium manufacturers.
A balloon loan lets you make lower monthly payments followed by a large final payment, often in the thousands of dollars. If you make the final payment, then you own the motorcycle, but if you prefer, you can skip it and turn the bike back to the dealer instead, just like with a lease.
You may also be able to turn in the motorcycle for a new version.
Ducati’s Premier Financing and BMW’s Easy Ride programs are two options for balloon financing high-end motorbikes.
Frequently asked questions
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