What is a Rider-to-Rider Financing and How Does It Work?

Rider-to-rider financing is a used motorbike financing program introduced by Harley Davidson. This program aims to facilitate qualified individuals buying a used motorcycle from a private party. In this process, a local dealer of the Harley Davidson is involved. Hence, it leads to expert guidance in the process of raising finance and executing transactions.

How does rider-to-rider financing work?

As the name suggests, it’s user-to-user financing. In simple words, a motorbike is sold from one user (seller) to another user (buyer). The role of Harley Davidson is of the financier and facilitator to complete the sale transaction.

As a financier, the HD finances the purchase and makes a payment for the motorbike to the seller. Interest is charged on the loan amount. Financing approval is the first step toward deal execution. In the next stages, documents are verified, and ownership is transferred long with a factory warranty.

It’s important to note that both seller and buyer need to visit the dealership simultaneously. It’s for document verification and physical conditions assessment of the bike. Similarly, the bike delivery needs to take place at the dealership office.

These controls aim to protect the interest of both seller-buyer. Any problems in the process are highlighted, and things are mutually agreed upon to ensure the process is executed with higher transparency and efficiency.

Benefits from a buyer perspective

Following are some of the benefits of rider-to-rider financing from the buyer’s perspective.

  1. The interest charged by HD on financing is competitive and reasonable.
  2. The HD dealership thoroughly inspects the condition of the motorbike. Hence, if there are some of the technical/hidden faults or problems in the motorbike, they are discovered. It’s a source of massive peace for the buyer.
  3. At the time of purchase, the buyer can include additional features, services, and accessories in the motorbike. These include service plans, changes of parts, accessories, and a service plan for the future.
  4. A maintenance check is performed on the motorbikes before handing them over to the customer.
  5. Expert engineers of the company perform bike inspections. Hence, it should be a place of reliance for the buyer regarding the operating condition of the bike.
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Benefits for seller perspective

Following are some of the benefits of rider to rider financing from a seller’s perspective.

  1. It leads to an increase in the number of potential buyers. In simple words, not everyone can afford to buy HD with full cash payment. So, financing leads to an increase in the number of potential customers available to the seller.
  2. The HD dealer handles the documentation process. All paperwork including ownership transfer, bill of sales, a loan agreement is prepared by the dealership. Hence, it leads to peace of mind and ease of the procedure.
  3. The dealership also assists you with the applicable factory warranty. The remaining factory warranty is transferred to the motorbike buyer.

Process for the buyer

The buyer’s purpose is to purchase a bike by financing through Harley Davidson. However, the purchase is made by the current rider (owner). The potential buyer needs to perform the following procedure.

  1. Fill out an online credit application form for the purchase of a motorbike. Here, you need to provide personal information and answer some standard questions.
  2. Visit your nearest dealership for the Harley Davidson. You can inquire them if you have any specific queries about your process to buy the motorbike.
  3. In case of financing approval, the next step is visual verification of the motorbike. The dealership technical staff evaluates the physical condition of the motorbike and highlights if there are any problems with the motorbike.
  4. After a physical assessment, bike documents are assessed to ensure service and factory warranty is transferred to the new owner or a right claim is made in terms of remaining warranty coverage.
  5. As a buyer, you’ll need to submit different documents that include a photo identification card issued by the state/federal government, and proof of physical insurance damage. Further, down payment proof also needs to be submitted.
  6. You may also be required to submit additional documents that include income proof (a salary slip, current paycheck, or W2 form), proof of residence (including electricity bill or mortgage loan, etc.)
  7. Once all of these documents are verified, you are given a motorbike. However, you have purchased the bike on financing. So, you need to ensure timely installment payment in terms of interest and principal.
  8. After completing these procedural formalities, you are handed over with the motorbike.
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Process for the sellers

The purpose of the seller is to execute sales transactions and receive proceeds. The following procedure needs to be followed by sellers.

  1. Call HD dealership to discuss details if you can sell your motorbike under the financing program.
  2. Discuss financing arrangements with the potential buyer. You can discuss the terms of the sale including competitive interest rate, tenure, and other applicable details for the financing.
  3. If your buyer is interested, guide them that they will need to fill out an online credit application form at the website of HD.
  4. Next, visit the HD dealership with the motorbike and all relevant documents in hand. The documents that you need to visit with the dealership include the title/ownership document, your photo identification, current loan information, and other related documents.
  5. After credit approval from your potential buyer, your motorbike is inspected by the technical staff at the dealership. In case there is some fault, it’s highlighted in the report.
  6. Confirm that the motorbike was delivered to the buyer in line with the loan agreement. In fact, it needs to be done at the dealership office.
  7. Collect your check directly from the HD dealership.

It’s important to note that you have sold a bike to the rider and not HD. The role of the HD dealership is restricted to financing, inspection, and facilitation in the preparation of documents to properly execute the deal.


The terms rider to rider financing is used by Hardly Davidson when they finance sale/purchase transactions for the used HD motorbike. It’s important to note that HD does not support its purchase of bikes in the rider-to-rider transaction. Instead, their role is restricted to the financing transaction on behalf of the buyer.

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The HD has designed certain procedures for financing. The first step is getting approval for the credit purchase. Once it’s approved. The second is document inspection, the third is evaluation of the motorbike, and delivery is made to the buyer.

It’s important to note that delivery of motorbikes is made at the dealership to ensure transparency throughout the process of rider to rider financing.

Frequently asked questions

Why is rider-to-rider financing so-called?

Rider to rider financing is so-called because both seller and buyer are a rider. The company itself is not part of the transaction. However, their interest is restricted to the financing income. Further, it’s important to note that it’s a sale and purchase of the bikes used by the rider (seller) in the transaction.

What’s the interest of Harley Davidson in the execution of financing?

The interest of Harley Davidson is limited to the return earned on a loan. Further, they also charge an inspection fee for the motorbikes.

Why it’s advisable to purchase a used motorbike through a Harley dealership?

The dealership is an expert in executing the deals for sale and purchase. They understand procedural complexities, applicable rules for warranty provision, inspection dynamics, and related legal aspects. Hence, it’s advisable to execute purchase transactions via an HD dealership even if you are not opting to raise financing.

To execute rider to rider financing, why do buyers and sellers need to be present at the dealership?

It’s a company policy to ensure things remain transparent and any of the problems identified during physical/paper inspection are highlighted on a timely basis. This helps to ensure that transaction is executed with higher transparency and efficiency.