Motorcycle LOA or classic motorcycle credit: how to choose?

The LOA moto works on the same principle as a LOA formula for cars. It therefore raises the same questions, and does not necessarily adapt to all riders. Update on the conditions, advantages and disadvantages of rental with option to buy a motorcycle.

What is LOA for motorcycle?

What is LOA for motorcycle?

Three out of four French people opt for an LOA solution to the detriment of a car or motorcycle loan to finance their new vehicle. Leasing with an option to buy consists of renting a new or second-hand vehicle, for generally affordable monthly payments, on the basis of a mileage package fixed in advance.

A “maintenance & repairs” contract can also be taken out in certain cases, as well as various complementary insurances. The duration of a motorcycle LOA rarely exceeds 48 months (4 years) . The principle is to have the possibility of changing a racing car regularly. Once the duration of the rental contract has been reached, it is possible to buy the vehicle or return it in excellent condition.

The LOA moto seduces mainly for two reasons:

  • The monthly payments are generally less important than those of a classic motorcycle loan.
  • Credit is sometimes more easily accepted than a repayable car / motorcycle loan.

We will however see that this solution has many gray areas. The LOA moto is not suitable for all profiles , far from it.

Motorcycle LOA: a formula with obvious limits

Motorcycle LOA: a formula with obvious limits

Here are the main reasons to prefer a cheap motorcycle loan to an LOA solution:

  • It is a rental and you never become the owner before having paid the total amount due at the end of the contract. The price of the motorcycle is fixed in advance, and the amount to be spent generally corresponds to around 30% of the initial cost.
  • Big wheelers will pay a huge mileage charge . The LOA contract indeed includes a mileage package not to be exceeded. Bikers accustomed to exceeding 20,000 km per year will therefore pay dearly for their motorcycle LOA.
  • The APR rate is not mentioned . So you never know exactly how much LOA consumer credit will cost us.
  • The motorcycle LOA contract incorporating repairs and other maintenance packages is sometimes very expensive, and not necessarily suitable . We had already pointed out this practice to inflate the total cost in our survey “LOA LLD, car credit: which one to choose?” “

The LOA new or used motorcycle does not therefore adapt to all bikers. The classic motorcycle credit is in some cases much more attractive. We took part in a comparison of LOA rates against conventional credit in our opinion on LOA. The result leaves no room for doubt.

Motorcycle credit, a more transparent solution

Motorcycle credit, a more transparent solution

The classic motorcycle loan provides access to several advantages, starting with that of becoming the immediate owner of the machine. Credit organizations all offer solutions adapted to the financing of a two-wheeler.

Using a credit comparator helps identify the cheapest credit solutions. The monthly payments are generally higher than on a motorcycle LOA, but the APR rate is much less important.

Comparison of motorcycle loan rates

Here is an example of a 10,000 USD motorcycle credit simulation over 36 months, made using our comparator. We find that if the two best organizations have a competitive rate, the third is much more expensive.

Motorcycle LOA or motorcycle credit: our opinion 

Motorcycle LOA or motorcycle credit: our opinion 

As we have seen, the choice depends on several criteria. However, be aware that the LOA motorcycle does not allow you to become an owner. It will therefore be necessary to plan to drive according to the mileage plan established in the contract. Any overshoot can indeed result in significant costs.

The costs, precisely, are more important in the context of a motorcycle LOA than for a conventional credit. In exchange, the lender provides access to a motorcycle for often very affordable monthly payments.