Powersport Financing

Motorcycle Financing

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Powersport Financing stands as the premier option when it comes to motorcycle financing bad credit motorcycle loans, owing to our streamlined application process and committed financing experts. Our offerings include competitive rates and adaptable repayment terms, ensuring that owning a motorcycle remains affordable.

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How Does Motorcycle Financing Work?

Time to get approved for a good or bad credit motorcycle loan

1. Take Our Quiz

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2. Choose Motorcycle

Buy privatley or from a dealer

3. Enjoy Your Motorcycle

All that's left is to enjoy your new toy

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Estimate Your Motorcycle Financing Payments

Check your payment quote first to see if it fits your budget before you begin shopping.

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Bad Credit Motorcycle Loans

Powersport Financing has created an extensive team of knowledgeable motorcycle specialists who are dedicated to assisting you in obtaining approval and providing guidance throughout the purchasing journey.

Motorcycle Financing Q&A

There are a few main options for financing a motorcycle in Canada. The most common are bank loans, dealer financing, personal loans, and lines of credit. Bank loans allow you to borrow directly from a bank or credit union. Dealer financing is financing offered directly through the motorcycle dealership you are purchasing from. Personal loans can be acquired through banks, credit unions, or online lenders. Lines of credit function like credit cards, allowing you to borrow up to a set limit. Each option has different interest rates, repayment terms, and eligibility requirements. Shop around to find the best motorcycle financing option for your needs and budget.

With bad credit, the amount you can borrow for a motorcycle in Canada will be limited compared to someone with excellent credit. Some rough guidelines on loan amount limits with poor credit:


Credit score below 550: up to $5,000

Credit score 550-600: up to $10,000

Credit score 600-650: up to $15,000

Credit score 650-700: up to $20,000


Higher credit scores, lower debt-to-income ratios, larger down payments, and bringing a co-signer can help boost loan amounts approved. Many lenders will also finance up to a certain percentage of the motorcycle’s value, typically 60-80% with bad credit. Shop multiple lenders to find the highest loan amount for your needs.

Most lenders recommend a credit score of at least 650-700 for motorcycle financing in Canada. The higher your credit score, the better interest rate you are likely to qualify for. Anything below 600 will make it very difficult to get approved for motorcycle financing. If your credit score is on the lower end, consider taking steps to improve it before applying, such as paying down debts, avoiding new credit applications, and ensuring on-time payments. A cosigner with good credit may also help you get approved and secure a better rate if your credit needs improvement.

The typical down payment for a motorcycle loan in Canada is 10-25% of the purchase price. Some lenders may offer financing with little to no down payment, but this usually comes with higher interest rates and is only available to those with excellent credit. Putting down 20-25% or more can help you secure a better interest rate and lower your monthly payments. Make sure to factor in taxes and fees in addition to the motorcycle’s sticker price when saving for a sufficient down payment.

The average interest rate for motorcycle loans in Canada typically ranges between 6-12%. Lower rates around 6-8% tend to be offered to borrowers with great credit (720+ credit score). Those with fair credit in the mid 600s will usually see interest rates of 10-12%. Several factors determine your rate, including your credit score and history, the motorcycle’s price, the loan term, and current market rates. Getting pre-approved can help you see what rates you qualify for before visiting dealerships.

Most motorcycle loans in Canada offer repayment terms between 24 and 72 months. 24-36 months are common for less expensive bikes, while 48-72 month loans allow you to spread out payments over time for more expensive motorcycles. Longer terms come with higher interest charges but lower monthly payments. Carefully consider whether you can manage higher payments over 2-3 years, or need a longer term but will pay more in interest. Read all loan details to make the best decision.

Here are some tips for getting the best motorcycle loan rates in Canada if you have poor credit:


– Shop around with multiple lenders and compare quotes

– Opt for shorter loan terms, which have lower rates

– Make a larger down payment of 20% or more if possible

– Provide proof of steady income by showing pay stubs

– Bring a co-signer with good credit to help you qualify

– Explain any past credit issues and steps you’ve taken to improve

– Build your credit score before applying by paying bills on time

– Consider a secured loan requiring collateral to get better rates

– Look for lenders that specialize in bad credit loans


Taking these steps can help you get more affordable financing even with less-than-perfect credit.

Typical documents required for motorcycle loan applications in Canada include:


– Proof of income – Recent pay stubs, tax returns, bank statements

– Proof of identification – Driver’s license, passport

– Proof of address – Utility bill, bank statement with address

– Proof of down payment

– References

– Completed loan application

– Insurance documentation


Having these documents ready will help speed up the application and approval process. Double check with your lender if any additional documents are needed.

Yes, getting pre-approved for motorcycle financing in Canada is recommended. Pre-approval allows you to check interest rates and your estimated borrowing power before visiting dealers. Having a pre-approved loan shows sellers you are a serious buyer and can give you stronger negotiating power. To get pre-approved, submit a financing application with your personal details and financial documents. You can apply with banks, credit unions, or third-party lenders. A soft credit check is usually done initially that won’t affect your score.

Here are some tips for securing the lowest interest rate when financing a motorcycle in Canada:


– Have excellent credit (720 score or higher)

– Put down a larger down payment, at least 20%

– Opt for a shorter loan term (24-36 months)

– Become a member at a credit union

– Have a co-signer with good credit

– Shop for rates from multiple lenders

– Look for promotions and special offers


Taking steps to improve your credit profile and financial position will help you qualify for the most favourable interest rates. Compare options to find the best rate.

When financing a motorcycle in Canada, expect to pay the following common fees:


Origination fee – Charged upfront to process the loan, usually 1-2% of the loan amount

Prepayment penalties – May be charged if you pay off the loan early

Late fees – Typically $15-40 for overdue payments

NSF fees – Up to $45 for bounced cheques or failed automatic payments

Lien registration fee – To register the lien with the provincial government

Dealer documentation fees – Charged by dealerships for preparing documents


Ask your lender to explain all fees so there are no surprises. Fees can add a considerable cost to your loan.

Both banks and dealerships offer motorcycle financing in Canada. Banks typically offer lower interest rates, while dealers promote incentives like no payments for 6 months. Dealerships are convenient but bank loans usually save money long-term. Get quotes from both to compare rates and fees. Banks also tend to have higher approval requirements while dealers are more flexible. If you have good credit, start with your bank or credit union first.

The typical interest rate for a bad credit motorcycle loan in Canada can range from 10% to 29%. The actual rate offered will depend on factors like:


Your credit score – the lower your score, the higher the rate

The lender – banks tend to offer lower rates than private lenders

New or used motorcycle – used bikes may have higher rates

Down payment amount – larger down payments can mean lower rates

Loan term – shorter terms tend to have lower rates

Co-signer – having a co-signer with good credit may lower your rate


Those with poor credit scores below 600 should expect to pay interest rates on the higher end, around 25-29%. Improving your credit and shopping around can help you find the most reasonable rate for your situation.

Yes, there are motorcycle financing options available in Canada even if you have bad credit. Subprime lenders provide loans to borrowers with credit scores below 600. However, expect very high interest rates around 15-25%. Other bad credit financing options include:


– Secured loans using collateral like another vehicle

– Co-signer with better credit

– Down payment over 25%

– Special dealer financing programs

– Borrowing against a home equity line of credit


Improving your credit score and putting more money down are the best ways to get reasonable motorcycle loan rates with bad credit.

The typical process for applying for motorcycle financing in Canada is:


  1. Check your credit score and reports. Address any issues.
  2. Research different lenders and pre-qualify if possible. Compare rates.
  3. Gather required documents like proof of income and ID.
  4. Complete a motorcycle loan application with a lender.
  5. Wait for loan decision. This may take 1-7 days.
  6. If approved, review loan terms and sign paperwork.
  7. Lender will wire funds to the dealership.
  8. Pick up your new motorcycle!
  9. Make your first monthly payment within 30 days.

Some alternatives to consider beyond regular motorcycle loans in Canada include:


Personal loans or lines of credit – Unsecured loans from banks often with better rates

Payment financing – Pay off the motorcycle in installments directly to the dealer

Leasing – Make lower monthly payments with the option to buy or return the bike

Home equity line of credit – Borrow against your home’s value

Credit cards – Higher rates but offer rewards and flexible payments

Family loans – Borrow from relatives; draft a contract

Crowdfunding – Create a campaign to fund your bike purchase


Look at all your options to find the right motorcycle funding solution for your financial situation.

Some alternatives to consider beyond regular motorcycle loans in Canada include:


Personal loans or lines of credit – Unsecured loans from banks often with better rates

Payment financing – Pay off the motorcycle in installments directly to the dealer

Leasing – Make lower monthly payments with the option to buy or return the bike

Home equity line of credit – Borrow against your home’s value

Credit cards – Higher rates but offer rewards and flexible payments

Family loans – Borrow from relatives; draft a contract

Crowdfunding – Create a campaign to fund your bike purchase


Look at all your options to find the right motorcycle funding solution for your financial situation.

Here are some tips to rebuild your credit and improve your chances of getting approved for a motorcycle loan:


– Pay all bills on time – set up automatic payments if needed

– Pay down credit card and other debt balances

– Limit new credit applications – too many can lower your score

– Review credit reports and dispute any errors

– Become an authorized user on someone else’s account in good standing

– Sign up for secured credit cards and use responsibly

– Wait for negative information to fall off reports after 7 years


With time and diligent credit management, you can raise your score significantly. Lenders also like to see positive payment history.

The easiest motorcycle loans to get with bad credit in Canada are from private lenders and dealerships that specialize in bad credit financing. Private lenders often have more flexible approval requirements and can offer higher loan amounts, longer terms, and structured payments. Dealer financing may be easier to get approved for but often have higher interest rates. Having a large down payment and steady income source will help improve your chances no matter where you apply.

Here are some helpful tips for finding the best motorcycle loan lender in Canada:


– Get loan quotes from banks, credit unions, online lenders, and dealerships. Compare interest rates, fees, and terms.

– Look for lenders that specialize in financing motorcycles as they may offer better rates.

– Ask about discounts for setting up automatic payments or taking a safety course.

– Calculate the total loan cost including interest and fees, not just the monthly payment amount.

– Inquire about loan terms from 12 months to 60 months to see which fits your budget best.

– Read reviews and check complaints with the Better Business Bureau before choosing a lender.

– Make sure the lender reports your loan payments to credit bureaus to help build your credit.

– Ask about flexible options if you hit temporary financial trouble during your loan.


Taking the time to research lenders will help you find the best loan experience.

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