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Motorcycle title loans
Take out a short-term loan using your motorcycle as collateral—but make sure you understand the risks involved first.
Title loans aren’t just limited to cars. Many title loan providers allow you to put other types of vehicle titles up for collateral, including motorcycles. Motorcycle title loans are similar to other title loans. You’ll get money fast, but loans are expensive and you risk losing your motorcycle if you can’t repay borrowed funds.
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How do motorcycle title loans work?
Motorcycle title loans use your motorcycle’s title as collateral for a short-term loan. You can typically borrow up to 50% of the value of your motorcycle. Because you’re providing collateral, title loans have more lenient eligibility requirements than other loans. This means that you may be able to qualify for a loan even if you have bad credit or no credit.
But there are two main drawbacks to be aware of:
- Motorcycle title loans are an expensive borrowing option with high APRs.
- If you can’t keep up with repayments, the lender can repossess your motorcycle.
If you’re approved for a motorcycle title loan, the lender will place a lien on your bike title and may also install a GPS tracker on your motorcycle until the loan is paid off.
Features of motorcycle title loans
- Loan amount. Maximum loan amounts vary between lenders, and the amount you can borrow is based on the value of your motorcycle. As a general guide, most lenders will let you borrow 25% to 50% of the value of your bike.
- Rates. Title loans often have high APRs of 9%–49%. You need to shop around to find the best motorcycle title loans with the lowest rates.
- Turnaround time. Same-day funding is often available, and if you apply in-person you may be able to get funded within an hour. You’ll typically get your loan amount via e-Transfer or direct deposit.
- Loan term. Terms commonly range from 3 – 60 months, but some title loan lenders offer longer repayment periods.
- Eligibility. You’ll need to own your motorcycle outright and it’ll need to meet the lender’s eligibility criteria. We’ll explore these requirements in more detail below.
Consider a motorcycle title loan if…
- You have bad credit. Usually, all credit types are accepted, and many lenders offer no credit check motorcycle title loans. Learn more about the best bad credit loans.
- You need a large loan amount. Providing your motorcycle title as collateral could help you qualify for a larger amount than you would get with an unsecured loan.
- You need a fast loan. It’s possible to get a motorcycle title loan the same day in some cases. You’ll need to make sure that you have all your paperwork in order and that you can take your bike to the lender for an inspection. Learn more about same-day loans.
Pros and cons of motorcycle title loans
Pros
- Fast funding. You can get a title loan within an hour if you apply in person.
- All credit types accepted. You can still qualify for a motorcycle title loan if you have bad credit or no credit.
- No job necessary. As long as you have proof of income from government benefits, a pension, alimony or anywhere else, you might still qualify for a title loan.
- Lower APR than other short-term loans. Though costly, title loans are less expensive than payday loans.
Cons
- Expensive. Lenders can charge up to 60% (effective annual interest).
- Risk losing your motorcycle. If you can’t pay off your loan, your lender can repossess the motorcycle to cover what you owe.
- Watch out for fees. Title search fees, motorcycle inspection fees and other charges can increase the cost of your loan.
- Scams. Sketchy lenders often target bad credit borrowers who struggle to qualify for traditional loans, so research the lender thoroughly to make sure it’s legit before applying. Learn more about personal loan scams.
Motorcycle title loan eligibility requirements
Like other short-term loans, title loans are usually easier to qualify for than a traditional personal loan. However, you generally still need to meet a few requirements:
- Have a suitable motorcycle. Each lender has its own criteria for determining whether a vehicle is suitable for a motorcycle title loan. For example, your bike may have to be less than 10 years old, be insured and not have exceeded a specific mileage limit. Check the lender’s website for details of acceptable motorcycles.
- Have a lien-free motorcycle title. Most lenders will require that you own your motorcycle outright.
- Have a regular income. You don’t necessarily need to be employed to get a title loan, but you need a steady source of income like government benefits or a pension.
- Be the age of majority. You must be the age of majority in your province or territory.
- Have proof of residence. Some lenders might ask to see a copy of a utility bill, mortgage or lease agreement that shows your residential address.
How do I apply for a motorcycle title loan?
The application process varies depending on your lender, but you can generally expect to follow a version of these steps:
Step 1: Compare lenders
Find a nearby provider offering loans that you qualify for. When comparing options, double-check that lenders accept motorcycle titles as collateral—not all do. Compare loan terms and APRs before deciding where to apply.
Step 2: Fill out an application
Provide your personal information and contact details, plus the make, model, year and mileage of your motorcycle.
Step 3: Provide paperwork
Provide any documents the lender requests to process your application. This may include proof of ID, proof of income & employment, proof of residency (like a recent utility bill) and proof of insurance.
Step 4: Upload photos and your motorcycle title (if applying online)
Upload photos of your motorcycle as requested by the lender. Most lenders will request images of your bike from different angles as well as photos of the VIN and odometer.
Step 5: Take your motorcycle for an inspection (if applying in person)
While it’s possible to get a title loan online, it’s far more common for title loan providers to ask you to stop by in person. Once there, you can submit documents, leave a copy of your keys (if required by the lender), get your motorcycle inspected and sign the loan papers.
Step 6: Sign the loan contract and get funded
Review the details of the loan carefully before signing. Check the amount, loan term and APR, and read the fine print for details of any hidden fees. Once you’ve signed, you’ll typically get funds via e-Transfer or direct deposit.
Bottom line
If you’ve got bad credit but own a motorcycle, a motorcycle title loan can provide a quick and convenient way to access a short-term loan. But title loans are expensive, and you could lose your motorcycle if you fall behind on repayments. So, consider your short-term loan alternatives first.
If you do decide that a title loan is your best option, compare a range of lenders to find cheap motorcycle title loans.
Frequently asked questions
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