Can You Lease a Motorcycle?

Don’t you wish you could ride your dream bike without the long-term commitment associated with owning the vehicle? If so, leasing a motorcycle can be a great option for you.

In this article, we are going to take a closer look at whether you can lease a motorcycle and what’s involved in the process. 

Key Takeaways

• You can typically lease a bike for 18 to 60 months, with a 10% to 30% down payment. 
• At the end of the lease term, you will be able to renew the lease, upgrade to a new model, or buy out the bike.
• MotoLease and SpeedLeasing are the two main motorcycle lease companies. Both offer their services through participating dealers.
• Getting a motorcycle loan, taking out a short-term rental, or applying for a balloon loan are viable alternatives to a motorcycle lease.

Can You Lease a Motorcycle?

You can lease a motorcycle, but it is not very common. 

A motorcycle lease is similar to an auto lease - it allows you to get a bike without financing it. Instead, you will make monthly payments for the right to drive the vehicle. Once the lease expires, you would have to renew the lease or return the motorcycle to the lease provider.

Can You Rent to Own a Motorcycle?

Rent to own, also known as “lease to own” is an arrangement where you can buy out a motorcycle at end of the lease period instead of returning it to the lease company.

Rent to own is possible with motorcycles and regular cars alike. You can buy out the motorcycle by paying a prorated fee to the lease company.

A motorcycle lease is similar to an auto lease - it allows you to get a bike without financing it. Instead, you will make monthly payments for the right to drive the vehicle. Once the lease expires, you would have to renew the lease or return the motorcycle to the lease provider.

How to Lease a Motorcycle: Factors to Consider

The process of leasing a motorcycle is fairly standard, whether you want to lease a dirt bike, a cruiser, or even a little moped.

Where to Lease a Motorcycle?

While most dealerships don’t offer motorbike leasing, there are dedicated companies that provide motorcycle lease programs. Two main motorbike lease providers are MotoLease and SpeedLeasing, - if your dealer works with one of these companies, you may be able to arrange a lease directly at the dealership and walk away with a leased bike. Alternatively, you can apply for a lease online.

How Much Should You Put Down on a Motorcycle?

The required down payment ranges depending on the lease provider you choose to work with, but putting down between 10% and 20% is typical. For instance, MotoLease offers leases up to $20,000, with a down payment of 10% to 30%. If you want to ride a more expensive model, you would have to increase the down payment to compensate for the price difference.

How Much Does It Cost to Lease a Motorcycle?

When leasing a motorcycle, your monthly payments will depend on the value of the bike, how much you put down, as well as the motolease interest rate and other fees charged by the lease provider.

For example, a new Harley Davidson Fat Bob with a total price of $19,500 will cost you around $372 in monthly lease payments. Leasing a more basic road bike would be far less expensive, with monthly lease payments of around $100 to $125.

How Long Can You Lease a Motorcycle for?

Most motorcycle leases last between 18 and 60 months. Once the lease term is up, you would have an option to renew the lease, trade in the motorcycle for a new model, or buy the motorcycle from the dealer.

Motorcycle Lease vs. Motorcycle Loan: Which Is Better?

If you are looking to get out on the road with a two-wheeler, your two main options are leasing a motorcycle and financing it. Let’s take a closer look at what you can expect with a motorcycle lease vs. a motorcycle loan.

Pros and Cons of Leasing a Motorcycle

Leasing a motorcycle is much cheaper than financing it and offers the flexibility to test out several vehicles without long-term commitment. With motorcycle leasing, it is easy to upgrade to the latest model at the end of your term or try out a nice bike that you can’t afford to buy.

Pros and Cons of Financing a Motorcycle

The main advantage of a motorcycle loan is that the bike now belongs to you. This means that you can do with it as you please, - you can tweak its performance, customize the exhaust pipes, or even accentuate your bike with a funky paint job. Plus, there is a much wider selection of motorcycle loan providers than motorcycle leasing companies: Lending Tree, Upstart, Credible, and SoFi, to name a few.

While motorcycle loans come with higher monthly payments, many manufacturers offer incentive rates or rebates on the purchase of a new motorbike.

Is Leasing a Motorcycle Right for You?

Leasing a motorcycle is a great option for you if you want to try out several models without the commitment that comes with purchasing a bike. 

It is also a great alternative if you can’t qualify for motorcycle financing at a reasonable rate, - by making regular lease payments, you will be able to improve your credit history and increase your chances of obtaining a motorcycle loan later on.

Note that, unlike auto leases, most motorcycle leases do not have mileage restrictions. This means that leasing a bike can work for your needs even if you ride a lot.

Examples of Motorcycle Lease Providers

MotoLease and Speed Leasing are the two major motorcycle leasing providers. Two smaller providers are Horsepower Financial and Honda Financial Services.

MotoLease - With MotoLease, you can get a lease for a vehicle up to 14 years old and up to $20,000 in value, with terms ranging from 18 to 60 months.

Speed Leasing - Speed Leasing focuses on new and used Indian bikes from 2014 and new and used Harley-Davidson motorcycles from 2007. The lease terms range from 24 to 60 months.

Horsepower Financial - Horsepower Financial offers leases through Harley Davidson dealers, with a pre-determined 36-month term. You can apply for a loan at a participating dealer or online.

Honda Financial Services - Honda is the only motorcycle manufacturer that offers leasing through its own lender, Honda Financial Services. Most other lenders don’t offer in-house leasing due to the overall lower cost of motorcycles.

Alternatives to Motorcycle Leasing

Besides motorcycle leases and loans, there are two other motorcycle financing options to consider:

Rent a motorcycle - If you need a motorcycle only for a few weeks or even days, short-term rental would be a great choice for your needs. You can also rent several bikes to try out different models before committing to lease or buy one.

Get a balloon loan - An arrangement, in which you would make smaller payments on a portion of the total amount you financed. At the end of the contract, you would make a single large balloon payment to compensate for the difference. Some motorcycle dealers offer balloon financing. 

Final Word: Leasing a Motorcycle Is Possible

If you are wondering whether you can lease a motorcycle, know that it is possible. While there aren’t too many companies that offer motorcycle leases, you can often arrange a lease through a participating dealer or by applying online. However, if you want to own the motorcycle rather than pay for its use, financing or buying it out at the end of the lease is your best option.