Motorcycle Refinancing (August 2025)

Are you an avid biker who loves the feel of being on the road? In that case, taking good care of your motorcycle should be one of the most important things in life. However, paying too much on your motorcycle loan can take away the fun of being a biker. Motorcycle refinancing can take the stress out of high monthly payments!

If you're servicing a motorcycle loan with high APRs and monthly payments, motorcycle refinancing through Way.com can help you save money easily. We can get you great rates from eligible lenders who will refinance your motorcycle – no matter which model or type it may be!

What is Motorcycle refinancing?

Motorcycle refinancing is the process of replacing your existing motorcycle loan with a new one that has better terms and conditions. Typically, the new motorcycle loan will have a lower APR, longer loan term, and reduced monthly payments, making it easier on your budget.

If done with the right lender and with the best APRs, motorcycle refinance can reduce your monthly payments by up to $100, besides giving you additional protection like GAP insurance and Extended Service Contracts (ESC). However, not all refinance lenders offer easy motorcycle refinance loans – you need to find the best ones before committing. Way.com can help you find and compare the best lenders in just a few minutes!

Why Should I Refinance My Motorcycle?

The main reason to refinance your motorcycle is that you were likely given a bad deal when you first purchased the bike and are paying too much in monthly payments. Typically, bank loans or dealership loans for motorcycle purchases will have higher APRs because of their financing criteria like:

• Credit Score
• Payment History
• Vehicle Eligibility

If your financial standing has improved since the motorcycle purchase, you can apply for auto refinancing to reduce the high monthly payments and take the stress off your wallet. The best refinancing for your motorcycle can help you compare rates from several lenders, buyout your lease, add co-borrowers, and even get cash-out refinancing for immediate expenses.

When Should You Consider Motorcycle Refinancing?

You can consider refinancing your motorcycle in the following cases:

Your credit score has improved – To refinance motorcycle loan, a higher credit score lets you qualify for lower rates and favorable terms. Have you paid off your motorcycle loan on time for at least six months? If you have an excellent loan repayment history, and your loan amount has been reduced, your credit score should have improved in such cases.

Interest rates have gone down - If the interest rates on the loan you already have reduced since you took it out, you might be able to refinance motorcycle loan at a lower rate and save money by doing so. If you refinanced $15,000 at a rate of 6% instead of 9%, you would save approximately $740 throughout the loan's lifetime. However, remember that application fees can cut into your accumulated cost savings.

The kind of lender that you go with is another factor that may make a difference. Because dealerships typically charge the highest interest rates and costs, you might be able to lower your interest rate by refinancing from a dealership loan into a loan from a bank or credit union.

Affordable shorter loan term – The quicker you finish your loan, the more you can save in the long run. You may have to make a larger monthly payment, but in the long run, you will save more because the loan will have a shorter period to accrue interest.

If you have already paid a sizeable portion of the principal amount on the existing motorcycle loan, you may be eligible to apply for a shorter repayment term. Also, a shorter repayment term is a worthwhile choice if you can make large monthly payments.

Motorcycle Refinance Rates (June 2023)

When shouldn't you refinance?

The costs outweigh the savings – Refinancing does not come that easy. Before refinancing your existing loan, you must make a thorough study and understand whether this move will prove to be beneficial for you in the long run.

There are several additional charges, such as the application fee you must pay the lender and the new interest on the refinanced loan. Ensure you compare the overall cost of paying off your present loan with the cost of the refinancing before deciding whether or not to accept an offer to refinance.

Prepayment penalty on your loan - Some lenders charge a fee for the premature closing of loans, commonly known as a prepayment penalty. Ensure with your lender before refinancing your loan. Not all lenders impose such fees, but those that do should be avoided.

Can You Refinance If You Have Negative Equity?

Motorcycle refinance with negative equity makes it difficult to get a new loan. When the collateral—your bike—is worth less than the loan, lenders tend to avoid refinancing risks. If you default with negative equity, the loan may cost more than the motorcycle.

If you can't acquire a loan, extra principal payments might erase negative equity for refinancing. Another possibility is refinancing a secured motorbike loan with an unsecured personal loan. Your bike's value and equity aren't evaluated for an unsecured personal loan.

Interest rates are higher on unsecured loans than secured ones. Credit scores of 720 or higher are preferable for cheap lending rates.

Is it difficult to get a bike refinanced?

Some mainstream lenders do not refinance motorcycles. It can also be difficult to go and search for the ones that do, since they have different rates compared to cars. However, Way.com has a vetted list of partners who offer motorcycle refinancing. You can compare their rates quickly and find the lender that fits your budget!

What Kinds of Motorcycle Refinancing Are There?

There are refinancing options for almost all brands of motorcycles in the market like:

• Harley Davidson
• Triumph
• Yamaha
• Honda
• Kawasaki
• Suzuki

What Do You Need to Refinance a Motorcycle?

Ensure you have the following loan details ready before choosing motorcycle refinancing.

• Credit score: Keep track of your credit score and ensure it’s over 660. This will give you the best APRs for refinancing.
• 10-day payoff amount: It is the amount you owe to your current lender including the next 10 days’ principal and interest.
• Motorcycle Loan-to-value ratio: It is the amount you want to borrow divided by the current resale value of the motorcycle. It also indicates whether you are “upside down” on your loan (owe more than what the bike is worth).
• Loan term remaining: It only makes sense to refinance if you have more than a year left to repay the current loan.
• Prepayment penalty: Ensure that your existing loan provider will not penalise you for paying off the loan early.

Besides, also have your other details ready, like:

• Motorcycle information: VIN, title, registration, number, and mileage
• Income information: Income proof and tax returns
• Personal information: Driver’s license and Social Security Number

How do I refinance my motorcycle?

While you can apply to any motorcycle refinancing offer, it takes patience and research to find the one that benefits you. Here are a few steps to help you navigate your perfect plan.

Determine if Refinancing is What You Need

Refinance motorcycle loan only if you are sure that the new loan will be a great option to lower your interest rate and reduce that overall loan term. However, there is no guarantee that refinancing will give you the terms you want.

It is best to determine your goals and decide what you want to achieve before applying. Most often, it's only worth refinancing if it fulfills one or more of the following goals:

• Cut down your monthly payments
• Cut down your interest rates
• Cash out your motorcycle's value
• Pay off your motorcycle sooner
• Add or remove a cosigner
• Switch to a better lender.

Review Your Credit

Your motorcycle refinance loan terms are directly affected by your credit score. But if you have a good credit score (670 or more on the FICO Score scale), you may be more likely to get a loan with a good interest rate.

Check out lenders and get prequalified

Many lenders let you prequalify for a loan, which gives you an idea of the rates and terms you might be able to get. When you look at prequalification offers, you can get a good idea of what you're qualified for without filling out a full application or losing points on your credit score. Use a motorcycle refinance loan calculator to figure out how much your monthly payment will be and how much the whole loan will cost.

Compare Lenders

Every potential lender presents a unique set of advantages. One lender may charge you far more than another due to differences in their conditions. Research your options for a refinance motorcycle loan, including local banks and credit unions, before applying.

Things to look for:

• Minimum and Maximum APR (Annual Percentage Rate)
• Credit Score Specifications
• Repayment Terms
• Origination fee, late fee, and other applicable charges
• Prepayment penalty.

Apply

It's time to apply when you've settled on a suitable loan and lender. This takes only a few minutes to complete online, but the lender may send a follow-up request for additional information.

If the lender accepts you and has signed the contract, your current loan will be repaid, and the new repayment schedule will begin.

Will my motorcycle qualify for refinancing?

Your motorcycle will qualify for refinancing if:

• It is less than 10 years old
• It has valid registration documents
• It has full coverage insurance; and
• If the motorcycle loan payments have been consistent

What are the benefits of GAP and ESC with motorcycle refinancing?

When you refinance your motorcycle, you also have the option of adding other components to the loan, like GAP and ESC.

• Guaranteed Asset Protection (GAP) covers the difference between the motorcycle’s worth (paid by your existing insurance company) and the actual amount you owe on it. This is extremely useful if your motorcycle is completely totaled in an accident and you have to pay off a loan amount that is more than the value of the motorcycle.
• Extended Service Contract (ESC) is an additional warranty that will cover mechanical failures, engine issues, and electrical problems your motorcycle may face after the manufacturer’s warranty expires.

Can I refinance my motorcycle with bad credit?

You can refinance your motorcycle even with bad credit, but you might have to pay higher monthly amounts. However, you can still ensure your credit is decent before applying by following the guidelines below:

• Ensure you are consistent in your payments for at least 6 months before applying. Clear any pending dues that may lower your credit score.
• Make a larger down payment so that the lender is satisfied to refinance your loan even with bad credit.
• Get a free copy of your credit report and keep track of your penalties.
• Shop around using online lending platforms and compare different offers before applying.

Why choose Way.com to refinance your motorcycle

We at Way.com know that maintaining and financing your motorcycle is hard work. However, it needn’t drain your wallet – with some smart steps, you can save thousands every year in vehicle expenses! Refinance your motorcycle with any of our trusted partners and never waste a penny again.

Use Way.com to easily compare the best rates and lenders for your motorcycle – all in just a few minutes. We’ll also help you find motorcycle refinancers that provide additional GAP insurance, extended service contracts, a 100% online application process, and excellent customer support.

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