North America Motorcycle Loan Market Analysis
The North America Motorcycle Loan Market size is estimated at USD 21.40 billion in 2025, and is expected to reach USD 30.01 billion by 2030, at a CAGR of 7% during the forecast period (2025-2030).
The North America motorcycle loan market is significant due to the popularity of motorcycles in the region. The market experienced steady growth over the years, driven by increased consumer demand for motorcycles and the availability of financing options. Motorcycle loan terms and interest rates in North America vary depending on the borrower's creditworthiness, the lender's policies, and the loan duration. Borrowers can typically choose between fixed or variable interest rates and select the loan term that suits their financial situation.
Economic conditions, such as interest rates and consumer confidence, can impact the motorcycle loan market in North America. Lower interest rates generally make financing more affordable and attractive to borrowers, while economic downturns affect consumer willingness to take on new loans. The application and approval process for motorcycle loans in North America typically involves filling out an application form and providing necessary documents such as proof of income, identification, and details of the purchased motorcycle. To determine loan eligibility and terms, lenders evaluate the borrower's creditworthiness, income, and financial stability. Some lenders may offer online loan applications for added convenience.
The pandemic caused widespread economic uncertainty, including many individuals' job losses, reduced incomes, and financial instability. This uncertainty affected the willingness and ability of consumers to take on new loans, including motorcycle loans. As a result, demand for motorcycle loans may be decreased during the pandemic. Financial institutions may be tightened their lending criteria during the pandemic to mitigate the increased risk associated with economic uncertainties. Lenders may become more cautious in approving loans, requiring higher credit scores, stricter income verification, and more rigorous loan underwriting processes. This tightening of lending criteria made it more challenging for some individuals to secure motorcycle loans.
North America Motorcycle Loan Market Trends
Banks are the Major Source for Financing in United States
The North American motorcycle loan market refers to the financial services industry segment that provides loans specifically tailored for the purchase of motorcycles in the countries of North America, including the United States and Canada.
North America's motorcycle loan market is segmented by vehicle type, by provider type, by percentage of amount sanctioned, by tenure, by geography. The market by vehicle type is further segmented into two-wheelers, passenger cars, and commercial vehicles. The market provider type is further segmented into banks, NBFc (non-banking financial services), OEM (original equipment manufacturers), and others (fintech companies)). The market by percentage of amount sanctioned is further segmented into less than 25%, 25-50%, 51-75%, and more than 75%. The market by tenure is further segmented into less than 3 years, 3-5 years, and more than 5 years. The market by geography is further segmented into the USA, Canada, and the rest of North America.
The report offers market size and forecasts for the North American motorcycle loan market in value (USD) for all the above segments.
Increasing Trend of Car Loan Balances in the United States
As car loan balances increase, consumers may allocate more of their borrowing capacity toward financing their cars. This increased competition for consumer financing may result in less available credit allocated to motorcycle loans. Lenders may prioritize car loans due to their larger loan amounts and potentially lower risk profiles, which could reduce the overall availability of motorcycle loans. The increasing popularity of car loans may influence consumer preferences and spending patterns. As individuals commit more of their borrowing capacity to car loans, their ability or willingness to take on additional debt, such as motorcycle loans, may be reduced. This shift in consumer preferences could lead to lower demand for motorcycle loans.
Financial institutions offering car and motorcycle loans may leverage the increasing trend of car loan balances to cross-sell motorcycle loans to their existing customers. They can promote motorcycle loans as an additional financing option, targeting customers with a relationship with the institution. This strategy may mitigate the potential impact of the increasing car loan balances on the motorcycle loan market.
North America Motorcycle Loan Industry Overview
The North America motorcycle loan industry is competitive, with lenders vying for market share. Major banks and credit unions offer motorcycle loan products, often leveraging their existing customer base and infrastructure. Specialized lenders focus specifically on consumer financing, including motorcycle loans. Additionally, captive financing arms of motorcycle manufacturers collaborate with lenders to provide exclusive financing options for their customers.
Major banks and credit unions play a significant role in the motorcycle loan market in North America. These institutions often include dedicated departments or divisions specializing in consumer financing, including motorcycle loans. They leverage their established brand presence, extensive networks, and existing customer relationships to offer competitive loan products. Some leading companies in the Market are Ally Financial Inc., Wells Fargo, JPMorgan Chase, Bank of American Corporation, and TD Bank.
North America Motorcycle Loan Market Leaders
Ally Financial Inc.
Wells Fargo
JPMorgan Chase
Bank of American Corporation
TD Bank
- *Disclaimer: Major Players sorted in no particular order
North America Motorcycle Loan Market News
- June 2023: Barcelona-based Stark Future bags €20M loan to scale up production of powerful motocross bike.it has signed a €20M loan agreement with Banco Santander.The funding will enable Stark Future to scale up its production capabilities, streamline manufacturing processes, and bolster research and development efforts related to the Stark VARG.
- April 2022: Harley-Davidson returns to raise USD 550 million in ABS. Motorcycle financing contracts will secure USD 550 million in asset-backed securities (ABS) that the Harley Davidson Motorcycle Trust, 2022-A, is expected to issue to bondholders. Fixed-rate, simple interest promissory notes and security agreements related to purchasing new and used motorcycles will secure the notes in a deal where Barclays, TD Securities, and Wells Fargo Securities are joint book runners, according to a Securities and Exchange Commission prospectus.
