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 well-designed, not to mention iconic brands in motorcycle history. The only problem is that Harleys can go for tens of thousands of dollars, even when it comes to older or used models.
Thankfully, you can finance a Harley-Davidson in Canada to make a Harley more affordable.
Where Can You Finance A Harley-Davidson In Canada?
Financing a vehicle usually involves taking out a loan so you can buy it over time with a series of installments. If you’re looking to finance a Harley-Davidson, the average cost of which ranges from $10,000 – $50,000, there are several ways you can buy it:
- Bank Loan – Some financial institutions offer loans specifically for motorcycles. However, the requirements can be strict, so you may only qualify for appealing interest rates and loan conditions if you have good credit and a steady income.
- Private Personal Loan Lender – You can also use an online personal loan to finance a Harley. Be careful, some personal loans feature easier requirements but higher rates and shorter payment terms, especially if you apply with bad credit or a low income.
- Recreational Vehicle Loan – Some banks, credit unions and alternative lenders provide loans for “recreational vehicles”, like ATVs, boats and motorcycles. In this case, approval requirements can vary from client to client and vehicle to vehicle.
Can You Finance A Harley-Davidson Through A Dealership?
If you apply online or through an official Harley Davidson dealership, you can obtain financing for all sorts of Harley-Davidson motorcycles, parts and accessories. Just follow these steps:
- Apply – Start by filling out a secure H-D application with the required information, such as your name, address, employment status and motorcycle license details.
- Submit Your Application – This will give Harley-Davidson permission to verify your income and credit. If approved, you may receive multiple financing offers.
- Get Your Bike – Lastly, you can browse offers, find the right payment plan, pick a Harley and finalize your transaction with the dealer. Then you’re free to ride!
Can You Finance A Harley-Davidson With Bad Credit?
If you have bad credit, it can be tough to qualify for a motorcycle loan. Bad credit is often a sign of irresponsible credit usage in the past, so lenders may be unwilling to lend to you. That said, you may still qualify for financing through a Harley-Davidson dealership as they look at many different factors when approving applicants.
So, if your credit is bad but you have a strong income and no debts, you may qualify for financing. Your online or local Harley dealer can also help you find options that suit your situation. While new Harleys are likely harder to get, you may be able to finance an older model.
Alternative Lenders & Dealers
If your credit and finances are in bad shape, you can also consider a private lender. These private alternative lenders tend to have easier requirements for personal loans and car loans. However, to offset the added risk they take, they usually charge higher interest rates than banks or new vehicle dealerships.
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READ ARTICLEHarley-Davidson Financing Factors To Consider
Here are some of the most important factors to consider when researching Harleys:
- How Much You Can Afford – Harleys are almost always in-demand, which means prices can be pretty high, even for used or older bikes. Not to mention, there’s future maintenance, insurance, registration and storage costs to also think about.
- What Kind Of Payment Plan Do You Want – 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 You’ll Get Financing From – Prime lenders, like banks and credit unions, tend to have harder requirements but better rates, loan conditions and security. However, alternative lenders can be more open to negotiation and bad credit.
- How Much Your Loan Will 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.
The 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’s an example of what you could pay to finance a Harley-Davidson.
| 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 |
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?
Although plenty of motorcycle dealers and lenders provide loans for used Harleys in Canada, financing may only be available for newer bikes. Since motorcycles can depreciate in value rapidly once they’re driven, many lenders who offer secured financing won’t finance models that are too old, have a high mileage or have too much wear n’ tear.
How Much Maintenance Does A Harley-Davidson Need?
Even if your Harley-Davidson is sturdy when it leaves the factory floor, all motorcycles will need routine maintenance throughout the years. This shouldn’t be much of an issue with a newer Harley but it may be with a used one. Unfortunately, not everyone treats their bike well, which is why it’s smart to get your Harley inspected before financing it.
Look for damage and leaks, as well as subpar repairs, modifications and replacement parts. Remember to check the bike’s VIN and history to see if it’s been in any accidents too.
What Do You Need To Ride A Harley?
While motorcycle laws vary between provinces and territories, you’ll usually need these elements to purchase and ride a Harley-Davidson in Canada:
- Riding Experience – Some Harleys have a lot of power and can be hard to handle if you’ve never ridden a motorcycle. Make sure you do all the proper schooling and have enough experience riding bikes of different calibers.
- Motorcycle License – Depending on where you live, you might need different types of licenses to operate different bikes. Additionally, you’ll have to pass various age, vision and written requirements to apply for a general license.
- Insurance, Ownership & Other Requirements – Remember, your Harley must be insured, registered and plated before you can legally ride it. Some regions also have laws that require owners to wear adequate helmets and safety gear.
Find out how much your car sales tax you’ll have to pay.
How To Choose A Harley You Can Finance In Canada
Harley-Davidson sells a huge range of motorcycles, so do research and test drive the vehicle before you make a choice. For example, if you’re a less-experienced rider, you may prefer a smaller model with quick handling, like a scrambler or sportster. On the other hand, a bigger bike may be more comfortable to ride over long distances.
If you’re having trouble deciding online or you can’t find the right dealer, there are several Harley-Davidson related events you can attend in Canada to check out the different models.
- The Motorcycle Shows – This annual motorcycle and pleasure craft display event usually tours through Calgary, Toronto, Vancouver, Montreal, Edmonton and Quebec City.
- The Toronto Motorcycle Show – This separate yearly event draws huge crowds and is a great venue to check out the newest releases, shop for bikes or talk with experts. Plus, you can buy the latest motorcycle gear and accessories there.
- The Wharf Rat Rally – This five-day event happens in Digby (Nova Scotia) and is one of the longest-running motorcycle rallies in Atlantic Canada. Unlike some bike shows, it has activities like workshops, stunt performances and live music.
Harley-Davidson Financing - FAQs
Should I buy my Harley-Davidson through a broker?
Should I buy a used Harley?
How does a Harley loan work?
What is the minimum credit score to get Harley-Davidson 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 sources and work with a legitimate financier to fiHarley-Davidsons are some of the most popular and timeless motorcycles to financend a bike you’re 100% happy with.
