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Different types of Motorcycle Finance

Different types of Motorcycle Finance

Motorcycling is a passion.  While your average motorbike might not be as expensive as a car, the bigger and more feature filled your bike, the more it is going to cost you. If you have a small pile of cash that you wouldn’t mind throwing down on a bike, you can look at other financing options. Here are a few tips to help you with this.

There may be a difference between the showroom price of the vehicle and the price that you will have to pay to start using it. Taxes, insurance, accessories and other add-ons will increase the final price of the vehicle, so you will need to get a full estimate from your dealer.

Hire purchase

Hire purchase systems are by far the easiest ways to buy motorcycles. After you have settled on a bike, find the final, on-road price. Once we source you the right deal based on your own circumstances we will provide a quote from a lender on our panel. The lender will pay the dealer and you will have to make monthly payments for up to 5 years on the vehicle. The monthly payments will be on a fixed interest and will generally be the same amount from the first month to the last payment after which you will be given the ownership documents. Most HP lenders have an option to purchase fee on the last payment.  We will discuss this with you.


PCP- Personal Contract Purchase

PCP is a good option for those who like to keep updating their motorbikes. This type of loan will give you the option to change your vehicle in a few years. The loan value will be the current value of the bike minus the Guaranteed Minimum Future Value (GMFV). The GMFV will be what the bike will be worth at the end of the payment period. Should you choose to keep the bike, you will need to pay this amount (Often described as Balloon payment).  You also have an option to return the bike back to the lender, providing you have met their conditions.  Another option is to part ex your bike in against a new one at a dealership.


Personal loan

Another option is a personal loan. The advantage with a personal loan is that the lender has no control over where you put the money, only that you repay it. Personal loans can be harder to acquire, but can be a good option if the licence you hold doesn’t meet the lenders criteria at the time, or the bike is too old to be financed by way of Hire Purchase.  While PCP and hire purchase systems hold on to ownership of the bike till you finish making payments, personal loans will give you full ownership rights because the bank has no tie up with the dealer.

Each Finance lender has a different set of criteria such as restrictions on the age of the vehicle, what type of motorbike licence you hold and the type of motorbike you are looking to purchase.  Sometimes this can seem confusing, but luckily the advisors at Superbike Loans are all experts in their field, so will guide you through the process.

To find out which product is best suited to you, simply make an application or give us a call and we will take some information and discuss your options before finding the right deal for you.  Financing your next motorcycle doesn’t need to be a chore, let us share our knowledge with you.

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Representative example: borrowing £3,000 over 36 Months with a representative APR of 24.9%, the amount payable would be £115.21 a month, with a total cost of credit of £1,147.56 and a total amount payable of £4,147.56

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