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Motorcycle title loans

What you need to know before putting your bike up as collateral on a short-term loan.

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. These are similar to other title loans: you’ll get your money fast, but you’ll likely pay APRs well into the triple digits and risk losing your motorcycle.

Compare auto title loans

Name Product Loan Interest Rate Max. Loan Amount Loan Term Min. Credit Score Requirements
Loans Canada Vehicle Title Loan
Loans Canada Vehicle Title Loan
0% to 29.99%
$35,000
3 - 96 months
300
Min. income of $1,800 /month, 3+ months employed
Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.
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How do motorcycle title loans work?

Motorcycle title loans work by using your motorcycle’s title as collateral for a short-term loan. You can typically borrow up to $10,000 depending on your province’s regulations and the value of your motorcycle. The federal government does not regulate title loans.

Motorcycle title loans are available to all credit types, and you don’t necessarily need a job to qualify. But they often come with APRs over 300% and can trigger a cycle of debt that can hurt your credit and personal finances.

How much is my motorcycle worth?

How much your motorcycle is worth depends on several factors, including the model, make, year, kilometres and wear and tear.

You can use websites like Auto Trader Canada to get a rough estimate of how much your bike is worth. However, you’ll need to get it inspected by a professional to get an accurate number. Title lenders typically inspect your vehicle before approving your loan, so you can find out how much it’s worth when you apply.

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:

  • Can I qualify?

    Title loans, like other short-term loans, are usually easier to qualify for than a traditional personal loan. However, you generally still need to meet a few requirements:

    • Have a lien-free motorcycle title. You can’t currently have any loans that use your motorcycle title as collateral and you need to own it outright, usually without owing anything on it.
    • Have a regular income. You don’t need to be employed to get a title loan, but you need money coming in from another source like government benefits or a pension.
    • Be the age of majority. You must be at least the age of majority in the province where you live.
    • Have proof of residence. Some lenders might ask to see a copy of a utility bill, mortgage or lease agreement that shows you live in the province where you’re applying for a loan.

    Benefits of motorcycle title loans

    From their lax credit requirements to their fast turnaround, here are some of the perks of motorcycle title loans:

    • Fast funding. Typically you can get your title loan in as little as 30 minutes if you apply in person.
    • Lower APR than other short-term loans. While still costly, title loans typically are less expensive than payday or installment loans.
    • Won’t lose your car. If you rely on your car more, with a motorcycle title loan you won’t risk losing your main form of transportation.
    • All credit types accepted. Good credit is not required to qualify for a motorcycle title loan.
    • 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.

    What to watch out for

    Consider these potential drawbacks before taking out a motorcycle title loan:

    • They’re expensive. Motorcycle title loans typically have APRs in the ballpark of 300%.
    • Could get trapped in a cycle of debt. Most provinces have laws prohibiting the roll-over or renewing of short-term loans, potentially preventing you from getting caught in a cycle of debt, however this isn’t always the case.
    • Risk losing your motorcycle. If you can’t pay off your loan, your lender can repossess your motorcycle to cover what you owe.
    • Application takes time. Unlike with other short-term loan options, you usually can’t complete the full application online. And even if you can, you’ll have to upload photos of your bike and documents, which can be time consuming.

    Bottom line

    Motorcycle title loans are a fast way to get cash at a slightly lower rate than other short-term loan options. And if you have a car, you don’t risk losing your main source of transportation. However, all title loans are still expensive.

    Before you apply, consider your short-term loan alternatives or check out our guide to title loans to learn more about how they work.

    Frequently asked questions

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