If you’re a motorcycle enthusiast, chances are you’ve thought about buying a Harley at one point or another. After all, Harley-Davidson is one of the most iconic brands in motorcycle history, and the relatively high price tag that comes with Harley models is a testament to the brand’s popularity and innovation. You can easily spend tens of thousands of dollars for a Harley, even for a used model.
Thankfully, you can finance a Harley-Davidson in Canada to make your bike purchase more affordable.
Key Points
- The cost to finance a Harley-Davidson varies based on the lender, loan amount, loan term, down payment, and interest rate.
- You can get Harley-Davidson financing from various sources, including banks, credit unions, private lenders, dealerships, and directly through Harley-Davidson Financial Services.
- Alternative financing options may be available, such as personal loans and leases.
- Whichever financing route you take, be sure to understand all costs involved.
How Can You Finance A Harley-Davidson In Canada?
Financing a vehicle usually involves taking out a loan so you can buy it over time in a series of installments. Before we discuss where you can get financing for your Harley-Davidson, let’s talk about the types of loans that are typically used.
Recreational Vehicle Loans
Some banks, credit unions and alternative lenders provide loans for “recreational vehicles”, like ATVs, boats, and motorcycles. With this type of loan, the lender will provide a lump sum of money to cover the vehicle price tag. Then, you can spread out the cost of the purchase through regular installment payments, which include both principal and interest.
Personal Loans
Alternatively, you can apply for a personal loan, which may be more suitable if you plan to buy a used Harley from a private seller. While a recreational vehicle loan is designed specifically to finance a vehicle, like a motorcycle, a personal loan can be used for just about any purpose.
Like a vehicle loan, a personal loan allows you to spread the cost of the purchase, then make regular installment payments until you pay off the full loan amount, plus interest. With a personal loan, however, you can essentially shop like a cash buyer, so the seller is fully paid upfront.
| Can You Finance A Harley-Davidson With Bad Credit? If you have bad credit, it can be tough to qualify for a motorcycle loan with a traditional lender. However, you may still qualify for financing through a Harley-Davidson dealership or alternative lender, as they look at other factors, including income and assets. So, if your credit is bad but you have a strong income and manageable debt, you may qualify for financing. |
Where Can You Finance A Harley-Davidson In Canada?
You have a few options when it comes to obtaining financing to fund your Harley-Davidson purchase.
Can You Finance A Harley-Davidson Through A Dealership?
You can finance a Harley-Davidson directly through the dealer you buy it from. With this option, the loan is funded in-house or by a third-party lender, such as a partner bank, credit union, or private lender.
This is a convenient option as it allows you to complete the purchase transaction and finance arrangement in one place. Then, you’ll make regular payments over a set term until the loan is fully repaid.
Can You Finance A Harley-Davidson Through The Manufacturer?
Yes, you can finance your Harley-Davidson directly through the manufacturer through Harley-Davidson Financial Services. You can easily and quickly complete and submit an online application for credit, both for new and used motorcycles. Once your application is reviewed and approved, you can finalize your transaction with the dealership and get your Harley-Davidson.
Can You Finance A Harley-Davidson Through A Bank?
Yes, banks offer both recreational vehicle loans and personal loans to help you buy a Harley. However, a bank’s loan requirements tend to be strict, so you may only qualify if you have good credit and a steady income. That said, banks typically offer the most competitive interest rates and favourable terms.
It’s also important to understand that if you take out a loan from a bank to finance a used Harley, there may be restrictions on the bike’s age and mileage. For instance, some banks may only agree to finance a motorcycle that’s less than 10 years old with a maximum of 50,000 km to 75,000 km.
Can You Finance A Harley-Davidson Through A Private Lender?
You can also use a loan from a private lender to finance your Harley-Davidson purchase. These lenders are better suited to those with bad credit or non-traditional income. This makes financing more accessible to those who may be unable to qualify for traditional bank financing.
However, interest rates from private lenders tend to be much higher compared to banks. Further, you may be given a shorter repayment term, especially if you apply with bad credit or a low income. In this case, it may be more difficult to come up with the full repayment amount in a shorter period of time.
| Provider | Powersport Vehicles | Available Terms | |
|---|---|---|---|
 Loans Canada |
| Up to 60 months or longer | Learn More |
 Spring Financial |
| Up to 60 months | Learn More |
 LendCare |
| Up to 180 months | Learn More |
 Prefera Finance |
| N/A | Learn More |
 All Pro Financing |
| Up to 20 years | Learn More |
 Fairstone |
| Up to 36-120 months | Learn More |
 Revival Powersports Financing |
| Up to 20 years | Learn More |
 Canada Powersports Financing |
| N/A | Learn More |
 Motorsports Financing |
| Up to 180 months | Learn More |
 National Powersports Financing |
| N/A | Learn More |
 Breeze Powersports Financing |
| N/A | Learn More |
 TD Bank |
| Up to 84 months | Learn More |
 Desjardins |
| Up to 20 years | Learn More |
 Scotiabank |
| Up to 20 years | Learn More |
 RBC |
| Up to 20 years | Learn More |
 National Bank Of Canada |
| Up to 240 months | Learn More |
Harley-Davidson Financing Factors To Consider
Here are some important factors to consider before applying for a loan to finance a Harley-Davidson:
- How Much You Can Afford: Harleys are high in demand among motorcycle buyers, which means prices can be pretty high, even for used or older bikes. Not to mention, there are future maintenance, insurance, registration, and storage costs to think about.
- Payment Plan: Different lenders and dealers offer different financing conditions. While many borrowers choose monthly plans, you may also have the option of weekly, bi-weekly and semi-monthly payments.
- Where To Apply: Prime lenders, like banks, tend to have harder requirements but better rates, loan conditions and security. However, private lenders can be more open to negotiation and bad credit.
- Loan Cost: The cost of financing a Harley can go well beyond its sales price. You’ll need to factor interest and service fees into your budget, too. Dealers may also charge fees to prepare your bike for purchase.
- Sales Tax: When buying a vehicle in Canada, including motorcycles, sales tax almost always applies. The rate you pay depends on the province you buy the motorcycle in, whether you’re buying new or used, and whether you’re buying from a dealer or private seller.
Cost Of Financing A Harley
Before committing to purchasing a Harley, it’s important to compare multiple quotes to get the best deal. Be sure to compare the following factors as they can change the total cost of your Harley.
- Interest Rate: Your interest rate is affected by a number of things. For instance, you may pay a higher rate if you apply with bad credit. However, lenders might be more reasonable if you offer a large down payment or finance a cheaper bike.
- Loan Term: The length of your payment term can also affect the amount of interest you pay. Longer terms typically have lower monthly payments but will cause you to pay more interest overall. Shorter terms help you pay the loan earlier but will have higher monthly payments.
- Fees: As mentioned, some motorcycle dealers charge exorbitant fees to ship, prepare and put a title on their Harleys. While that doesn’t occur with traditional lenders, you may have to pay administrative fees or loan origination fees.
Here are a few examples of what you could pay to finance a Harley-Davidson, based on different variables mentioned above:
| Cost of a New Harley | $25,000 | $30,000 | $40,000 |
| Loan Amount | $25,000 | $30,000 | $40,000 |
| Interest Rate (APR) | 5.99% | 4.99% | 3.99% |
| Loan Term | 36 months | 48 months | 60 months |
| Monthly Payment | $790.44 | $690.74 | $736.48 |
| Total Loan Cost | $27,375.67 | $33,155.66 | $44,188.82 |
Learn more: Are Car Dealerships Charging Canadian Consumers Hidden Fees?
What Is The Average Harley-Davidson Financing Rate?
You could pay on average anywhere from 5.99% to 15% on motorcycle financing, and even more if you have bad credit. However, lenders are not permitted to charge you more than the criminal interest rate in Canada, which is 35% APR. The interest rate you pay on a Harley motorcycle loan depends on a few factors, including:
- Your Credit Score: A higher credit score indicates you’re a more responsible borrower, which can lead to a lower interest rate.
- Loan Term: Longer loan terms often come with higher rates, since the lender assumes greater risk for a longer repayment period. On the other hand, shorter loan terms tend to come with lower interest rates, though the monthly payments are higher.
It’s important to compare loan offers from multiple lenders to find the best deal, which you can do quickly and easily using Loans Canada’s CompareHub tool.
How Much Do Harley-Davidson Motorcycles Cost?
The cost of a Harley-Davidson ranges quite a bit based on the model and whether the bike is new or used. The following chart lists some models and their starting MSRPs:
| Model | Starting MSRP |
| Nightster | $12,499 |
| Sportster S | $18,699 |
| Street Bob | $20,299 |
| Pan America 1250 | $24,999 |
| Fat Boy | $27,299 |
| Road King Special | $31,399 |
| Street Glide | $34,299 |
How To Apply For Harley-Davidson Financing
To apply for a loan to finance a Harley-Davidson, follow these steps:
Step 1: Review Your Finances And Credit Score
Assess your finances before applying for a Harley-Davidson finance. You’ll want to make sure you have the income needed to cover your loan payments after all your other existing bills have been paid. You’ll also need to have a lump sum of money to cover the down payment, which typically ranges from 10% to 20% of the purchase price.
You should also understand your credit score to determine your ability to get approved for a loan. You can check your credit score for free from your bank, the credit unions, or third-party platforms like CompareHub.
Step 2: Research Lenders
Look for lenders that specialize in motorcycle financing, including banks, credit unions, alternative lenders, and even dealerships. You can quickly find and compare lenders using an online loan comparison website like Loans Canada. Doing some comparison shopping can help you find the lowest rates and best loan terms.
Step 3: Complete The Loan Application
Fill out the lender’s loan application, which can either be done online or in person, depending on the lender you apply with.
Step 4: Gather Necessary Documents
You’ll need to provide the lender with various documents to back the information you provide in your application and to verify your identity. Documents required typically include the following:
- Government-issued photo ID, like a passport or driver’s license.
- Proof of residency, like a utility bill or lease agreement.
- Proof of employment and income, such as pay stubs and a letter of employment.
- Information about the motorcycle, such as the make, model, year, and the Vehicle Identification Number (VIN)
Step 5: Wait For Approval
Once you submit your application, the lender will review it, as well as the documents you provided. Once approved, you’ll get your Harley-Davidson and will start making loan payments as per your loan agreement.
Do You Need Insurance To Finance A Harley?
Yes, no matter what kind of Harley-Davidson you’re trying to finance, you must have motorcycle insurance to legally operate it. Some lenders and dealerships offer their own insurance packages, but there are many good private insurers out there too. Compare offers so you can find a premium, deductible and coverage plan that fits your budget.
Can You Finance A Used Harley?
Yes, you can finance a used Harley through the same channels as new bikes, including through Harley-Davidson Financial Services, banks, credit unions, and alternative lenders. Further, you can finance a used Harley using either a conventional motorcycle loan or a personal loan.
Keep in mind, however, that depending on the lender you apply with, there may be restrictions when it comes to the bike you’re financing. More specifically, traditional lenders like banks tend to have age and mileage limits. So, you may not be able to get bank financing if the bike is over a certain age or odometer reading.
Can You Lease A Harley-Davidson?
Yes, you can lease a Harley-Davidson as an alternative to financing.Here’s a table comparing the differences between leasing and financing.
| Leasing | Financing | |
| Monthly Payments | Lower than financing | Higher than leasing |
| Ownership | You don’t own the motorcycle and must either return it or buy it at the end of the lease term | You own the motorcycle once the loan is fully repaid |
| Mileage Limits | Mileage limits are applied; if you exceed the limit, you’ll be charged on a per-km basis | No limits |
| Loan Terms | Typically shorter than financing, often between 1 – 3 years | Typically longer than lease terms, often from 2 – 8 years |
| Customization | Not typically permitted | Freedom to customize |
Learn more: Leasing vs. Financing In Canada
Bottom Line
Harley-Davidsons are some of the most popular and timeless motorcycles to finance. If you decide to purchase one, just make sure you do research, compare multiple loan sources, and work with a legitimate financier to fund your Harley.
