A motorbike is more than a way to get from point A to point B — it’s a lifestyle. But like many lifestyle choices we make, there are often costs that come with them.

For motorbike owners, or those looking to buy a set of wheels soon, it pays to know the hidden costs of owning a motorbike.

Whether it’s hitting the trails for weekend camping, a day trip up the mountains, or simply a cruise by the ocean, we can help you get there sooner by putting you on the straight and narrow of motorbike finance

Understand all the costs so you don’t blow your bike budget

Before you can know how much buying a bike is going to set you back, getting a feel for all the costs can help ensure that you can put a budget in place that will cover everything.

The motorcycle purchase itself

If you’re new to motorcycle ownership, then chances are you won’t be going out buying a 1000cc super sports bike straight off the bat. Instead, you may be limited to what engine size you choose from, depending on your licence type. For example, in Queensland, the Learner Approved Motorbike (LAM) scheme provides motorbike riders on their learner’s licence a range of approved motorbikes, categorised by engine capacity.

For those that have had their motorbike licence for a while, their level of experience and intended use will also narrow down how much they may be looking to spend. For example, those after a cruiser or chopper may not necessarily wish to buy a top-of-the-range Harley Davidson, but instead, opt for a more cost-effective model. The price difference between dirt bikes, sports cruisers and sports bikes will all vary, similar to the differences between every category of car.

Riding gear

Regardless of what type of bike you’re interested in buying, riding gear is essential for all motorcycle riders. Understandably, you’ll want to protect yourself in the event of an accident, so be sure to consider everything from your helmet, gloves and leather pants when considering the total cost of your protective gear.

Getting safety gear unlike any other, can also rack up a bill unlike any other. Finding the right balance between adequate protection and budget is an important consideration when getting a bike.

Running costs

Buying any vehicle naturally comes with standard running costs. Motorcycles are often an attractive transport option thanks to their fuel efficiency when compared with most cars in Australia. Fuel efficient though they may be, the fuel consumption of your bike will still add up in fuel costs. Not to mention tyres, brake pads, registration, a trailer (if you’re going to put your bike on a carrier for trail bike riding) and other running costs.

Motorbike servicing

Servicing is one of the running costs that riders must consider and is often forgotten about when purchasing a bike. Keeping up chain maintenance and other basic maintenance (such as oil changes and checking the battery) can be a great way to keep repair costs down. Servicing costs vary depending on the brand, model, and whether you’ve got a 2-stroke or 4-stroke engine. Don’t let service prices surprise you after you’ve bought your wheels — know how much you’ll likely need to spend on motorbike servicing before you buy.

Motorcycle insurance

Understandably, you’ll want to make sure your new two-wheeled pride and joy is covered in the event of an accident or theft, which is why knowing how much insurance may cost you can ensure you have enough in your bike budget to cover it. Compulsory third-party insurance typically comes with your registration in most states and territories in Australia, but to cover yourself and the bike, getting a more comprehensive level of cover can provide better protection (although, it will generally cost more than compulsory third-party insurance).

Stamp duty

Regardless of whether you’re buying a new or second-hand motorcycle, stamp duty applies in most states and territories. Check online with your relevant roads authority to calculate how much stamp duty might cost you.

Dealer delivery charges

If you’re lucky enough to be getting your hands on a brand-new bike, then be aware that dealer delivery charges usually apply. Depending on the dealership that you’ve bought it from, these charges may include stamp duty and registration.

Auction fees

Going to an auction to purchase your bike? Then you can expect auction fees to be charged, based on the final purchase price. Remember that sites like eBay are still auction sites, so these fees and other fees may apply!

The hidden costs of motorcycle finance

If you don’t quite have enough saved up to purchase your bike and all of the associated costs outright, then you might look to get a motorbike loan to fund your next adventure. There are, however, some expenses that may not be immediately apparent, which can drive the loan cost upwards.

Administration charges

What many borrowers don’t realise is that your loan repayments aren’t just based on the loan amount plus interest, there may also be administration charges that are charged on top of your monthly repayment amount.

Loan application fees

When applying for a motorbike loan, be cautious of loan application fees that could apply.

Paying interest on registration

Depending on where you get your motorcycle loan, your first year’s registration may be added into the loan amount. This can be super handy as it’s one less thing you need to organise, however, be mindful that if your loan term is longer than one year (most bike loans are over five to seven years), you may be charged interest on that rego amount for the entire loan term.

Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.

Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528

Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.