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Motorcycles are small and lightweight, cheaper to produce, use up less fuel, and are more affordable to insure, Yet, they require the purchase of pricey safety gear and more frequent maintenance.
In this article, we are going to see whether motorcycles are cheaper than cars, and how much you can expect to pay for each option.
Key Takeaways
- Both buying a motorcycle and insuring it will cost you less than buying and insuring a car.
- While motorcycle riding requires the purchase of additional protective gear, the overall upfront and yearly costs of owning a motorcycle are several times lower than those of owning a car.
- Maintenance may seem daunting, but you'll be surprised to learn how it compares for motorcycles and cars.
Are Motorcycle Cheaper than Cars?
Motorcycles are considerably cheaper to purchase and more cost-efficient to own than cars. Their lower cost is due to their small and lightweight design, cheaper manufacturing, and faster production. Additionally, motorcycles consume less fuel, require fewer materials, and are cheaper to park.
While higher-end motorcycle models can also present a substantial investment, it is perfectly possible to find a decent bike for only a few thousand dollars.
Is Motorcycle Insurance Cheaper than Car Insurance?
Motorcycle insurance tends to be much more affordable than car insurance because motorcycles cost less to produce and are cheaper to fix as compared to cars. For instance, Jerry insurance company states that their average motorcycle insurance premium is around $560 per year, while yearly car insurance costs run just under $1,500.
How Much Does a Motorcycle Cost?
While motorcycles are fairly cheap to buy, the upfront purchase price is not the only expense you should be budgeting for. Let us take a closer look at the different costs associated with buying and owning a motorcycle.
Average Price of a Motorcycle
A new motorcycle can cost between $4,000 and $6,000 for an entry-level model and up to $30,000 for a higher-end bike. A typical range for a reliable bike is around $6,000 to $15,000. For used motorcycles, you can expect to pay between 20% and 50% less than for a brand-new bike of the same model.
Motorcycle Maintenance Costs
While motorcycles require more maintenance than cars, motorbike servicing is cheaper, which leads to maintenance costs comparable with cars. According to LendingTree, a typical cost to maintain a motorcycle can range between $800 and $1,500 per year.
How Much Does It Cost to Get a Motorcycle License?
While the exact cost of getting a motorcycle license can vary from state to state, you should not pay more than $120 for it. If you choose to take a motorcycle safety course, prepare an additional $300 to $500.
Additional Costs of Owning a Motorcycle
When calculating how much a motorcycle costs, remember to account for additional costs, such as:
- Insurance: $200 to $500 per year
- Fuel: avg. $245 per year
- Financing payments: approx. $250 per month
- Depreciation: approx. $95 per month
- Safety gear: $70 to $300+
The typical range for a reliable bike is around $6,000 to $15,000. For used motorcycles, you can expect to pay between 20% and 50% less than for a brand-new bike of the same model.
One of the ways to afford a motorcycle, especially the high-end ones, is through motorcycle loans. Many online lenders provide unsecured personal loans you can use to buy a motorcycle and motorcycle gear.
One such lender is LendingTree. You can use this platform to get personal loans from $1,000 to $50,000. To get approved, your credit score score can be as low as 586, and the APR. ranges between 3.99% to 35.99%.
How Much Does a Car Cost?
Naturally, owning a car also comes with more than one expense.
Average Price of a Car
Cars aren’t cheap! According to Statista, the average selling price of a new light car is around $46,290, which is considerably higher than the average price of a motorcycle.
Car Maintenance Costs
While a car may not require frequent service visits, car maintenance and replacement parts are on the expensive side. According to Policy Genius, the average annual maintenance cost of a car is around $792 per year (or $66 per month).
How Much Does It Cost to Get a Driver’s License?
Just as with the motorcycle license, the cost of a driver’s license varies by state. Most of the time, you would have to pay between $10 and $90 to obtain your license.
Additional Costs of Owning a Car
Additional costs associated with owning a car include:
- Insurance: avg. $111 per month
- Fuel: avg. $200 per month
- Financing payments: avg. $520 per month
- Depreciation: avg. $258 per month
Comparing the Average Cost of a Motorcycle vs. Car
Motorcycles require more maintenance, and you would need to spend an additional couple hundred dollars on protective gear. Nonetheless, a motorcycle would cost you around 4.2 times cheaper to buy and around 2.5 times cheaper to own as compared to a typical car.
| Avg. Motorcycle Costs | Avg. Car Costs | |
| Purchase Price | $11,000 | $46,290 |
| Maintenance Cost | $1,150/year | $792/year |
| License Cost | $70 | $50 |
| Insurance Payments | $350/year | $1,332/year |
| Fuel Cost | $245/year | $2,400/year |
| Depreciation | $1,140/year | $3,096/year |
| Cost of Protective Gear | $185 | $0 |
Total Cost (if not financed) | $11,255 upfront + $2,885/year | $46,340 upfront + $7,620/year |
Why Are Motorcycles So Cheap?
Due to their small, lightweight, and minimalist design, motorcycles are much cheaper to produce than cars. Let’s review some reasons as to why motorcycles are so cheap:
- They are smaller in general. Due to the compact size of motorcycles, their production requires fewer materials and less time. As a result, the production cost of a motorcycle is much lower.
- They have lower transmission costs. Since motorcycles are smaller and lighter, they use smaller (and, hence, cheaper) transmission systems. Motorcycle transmission also uses much less fluid.
- They have smaller (and cheaper) seats. Car seats are extremely expensive, especially when made from genuine leather. Motorcycle seats are small and require less material, which leads to a lower price tag.
- They have fewer technical and safety features. Most motorcycles don’t have advanced features like air conditioning, heated seats, or a rear-view camera. Because motorcycles focus on essentials, they cost much less than cars.
- They require less gas. Smaller size and lighter weight of motorcycles mean that they have much better gas mileage than typical cars. Naturally, better mileage means lower fuel costs.
- They are cheaper to park. Typical parking lots charge by size. Since multiple motorcycles can fit in a standard parking spot, parking fees for bikes are much lower than those for cars.
Final Word: Motorcycles Are Cheaper than Cars in Many Ways
Without a doubt, riding a motorcycle is one of the most affordable ways to get out on the road. Small and compact, motorbikes are faster and cheaper to produce than cars, have cheaper insurance, consume less fuel, and are even cheaper to park. So, if you are looking for a way to save money, perhaps, it’s time to trade in your car for a motorcycle!
