Introduction
Motorcycle journalists often dream of riding the latest and greatest motorcycles. Their experiences, spending so much time with each particular model, often make these bikes feel like a part of a permanent collection. While a handover of cash is typically needed to fully own a bike, buying isn’t the only way to truly know a motorcycle. There’s another low-risk, long-term alternative: a lease.
Leasing a motorcycle allows you to ride around almost free of long-term commitment. This option, although not as common as in the car world, is still viable. Leasing provides a low-risk and flexible rental alternative. We were wondering if Can You Lease a Motorcycle is even possible. As it turns out, the answer is yes! In the United States, there are companies currently offering motorcycle leases. This gives potential riders a chance to experience the thrill of a bike without the immediate handover of cash. So, if you’re looking to enjoy the ride without the full commitment, a motorcycle lease might be the right choice for you.
Motorcycle Leasing 101
Anyone who has rented or leased a car is likely familiar with the concept of leasing a motorcycle. The basic premise is straightforward: another party owns the bike and you are responsible for making payments at an agreed-upon price for an agreed-upon length of time. This can be up to 60 months or 5 years in some cases. Once the time is up, you have several options.
You can trade in the motorcycle for a new model, agree to new terms and continue making payments. Alternatively, you can buy the motorcycle outright by paying a prorated fee. Finally, you can simply turn the bike in and walk away.
Motorcycle Lease vs. Motorcycle Loan
When deciding between a motorcycle lease and a motorcycle loan, it’s important to understand the advantages of each. A motorcycle loan means the bike is yours to customize as you like. You can change the exhaust pipes, tweak the performance, or give it a custom paint job. Manufacturers often provide incentive rebates or special rates on the purchase of a new motorcycle. However, you will pay more overall with a loan because you’re paying for the full value of the motorcycle, plus interest and fees.
On the other hand, a lease offers more flexibility and lower monthly payments. You only pay for the value of the bike during the lease period, not the entire amount. For a new motorcyclist, a lease can be a good way to try different bikes without a long-term commitment. It also makes it easier to upgrade to the latest model and you might be able to trade up during the lease term.
If buying a more expensive bike is out of your budget, leasing can enable you to bring it home. If you fall in love with the bike, you have the option to buy it at the end of the lease. This way, you can enjoy the ride without the financial strain of purchasing it outright.
Considering the pros and cons of each option, a motorcycle lease typically offers lower monthly payment, the ability to drive a new motorcycle every few years, and unlimited mileage. A motorcycle loan, however, provides ownership, manufacturer’s incentive rates, and the ability to personalize your bike. Yet, a lease can be hard to find, doesn’t build equity, and requires acceptable credit. Loans come with higher monthly payments and high depreciation.
Is Leasing Right For You?
Leasing a motorcycle might seem strange to some people in the US, where wheels are often seen as an essential part of daily life. For many, making payments on what is considered a discretionary purchase can feel like investing in a toy you don’t get to keep in the end. However, there are significant benefits to this arrangement for certain riders.
If you love having new vehicles every few years and tend to rack up significant miles on your current vehicles, then leasing might be right for you. It avoids the long-term costs and reliability concerns of ownership, allowing you to enjoy something new and shiny regularly. The dealership handles maintenance on your motorcycle while you borrow it, making it easy to upgrade to a new model every few years.
For those with bad credit, leasing can be a good option. It’s often easier to get approved for a lease than a loan, which can help build your credit over time. However, if you default on a payment, your credit could take another plunge. If you don’t put on many miles, you might end up with negative equity at the end of your lease. On the other hand, if you already have smart financial decisions and pay cash for your motorcycles, this article might not apply to you.
Who Offers Motorcycle Leases?
Currently, two companies offer leasing options for motorcycles: Motolease and Speedleasing. These companies work with dealers to become an authorized dealer. To apply for a lease, you simply need to get approval, which usually comes within minutes. Once you agree to the terms, you can ride off on your motorcycle.
Speedleasing highlights in its FAQ section that low or no down payment is often needed, though this isn’t always the case. Motolease provides leases for up to $20,000, with down payments ranging from 10%-30%. If you need a larger lease amount, you might need a larger down payment or a trade-in to cover the difference. As an added bonus, both Motolease and Speedleasing offer unlimited mileage, unlike many car leases.
The main difference between these companies is their offerings. Speedleasing offers leases exclusively for Harley-Davidsons from 2007 to 2020 and for Indians from 2014 to 2020. Meanwhile, Motolease offers leases on new or used motorcycles that are up to 14 model years old, as long as the make and model are listed in the NADA powersport guide. Remember, these companies only operate in certain states, so check their site or your local dealer if you’re interested in motorcycle leasing. If you meet the criteria, it might be a good option to try.
Alternatives to Motorcycle Leasing
Maybe motorcycle leasing is rare for a good reason. There are many alternatives to motorcycle leasing that can help you get the motorcycle you want without the hassles of leasing. For example, buying used bikes with cash is a great option. You avoid financing costs, though you need to pay taxes and registration fees in addition to the price of the motorcycle.
Dealer financing is another way to go. You can take advantage of incentive offers on a motorcycle loan if you have good credit. This is a smart choice if you plan to keep the bike for a long time. It’s wise to compare rates and terms from multiple lenders before deciding on a motorcycle loan. Services like LendingTree can help you compare offers from different lenders.
Short-term renting is a smart option if you want to try out different bikes or need a special ride for a trip. You won’t need to stress over long-term obligations. You simply return the bike at the end of the rental period, and the rental company handles the maintenance.
For premium motorcycles, Balone Loan combines the aspects of leasing and purchase. It offers relatively low payments for a set term, but the final loan payment is much larger, often thousands of dollars. If you want to keep the motorcycle, you can pay the lump sum or refinance the balance. Programs like BMW’s Easy Ride and Ducati’s Premier Financing offer these loans through manufacturers. However, they typically require an excellent credit score, so not everyone will qualify.
FAQs
Is it cheaper to paint or Is it smart to lease a motorcycle?
Leasing a motorcycle can be a smart option for those who want flexibility. With leasing, another party owns the bike, and you make payments for an agreed-upon price and length of time. This can be up to 60 months or 5 years. When the time is up, you have options: trade the motorcycle for a new model, agree to new terms, buy the motorcycle outright by paying a prorated fee, or turn the bike in and walk away.
Is it easier to finance a motorcycle?
Financing a motorcycle can sometimes be easier than leasing. With financing, you can take advantage of incentive offers from dealers and secure a loan if you have good credit. This can help you own the bike in the long run.
Can I buy a motorcycle on a credit card?
Buying a motorcycle on a credit card is technically possible if your credit limit is high enough, and it can be appealing to earn rewards points or take advantage of a 0% introductory APR offer. However, this method generally isn’t recommended because credit card interest rates are typically much higher than those for traditional financing or loans. If you don’t pay off the balance quickly, the interest can significantly increase the total cost of the motorcycle. It’s crucial to compare this option carefully with others like loans or dealer financing.
Can I lease motorcycle in Canada?
Yes, you can lease a motorcycle in Canada. The process is similar to leasing a bike in other places. Another party owns the motorcycle, and you make payments for an agreed-upon price and length of time. This can be up to 60 months or 5 years. When the lease period ends, you can trade the motorcycle for a new one, agree to new terms, buy the bike outright, or simply walk away. Leasing offers flexibility and can be a smart choice for many riders.
