Finance Explained

Understand your buying options

Personal Contract Purchase (PCP)

Personal Contract Purchase, usually known as PCP, is a very popular way to purchase a bike that has some great benefits. It defers some of the vehicle cost until the end of the finance agreement. The deferred amount is known as the Guaranteed Minimum Future Value (GMFV) or sometimes as the Optional Final Payment. Interest on this deferred amount is included in the monthly payments that you are quoted.

You have the flexibility to choose the amount of deposit and the term of the agreement and as this is a fixed interest loan the payments will not change during the agreement.

You agree an annual mileage as part of this agreement and it is important that this is accurate. If you exceed the agreed mileage, and choose to hand your motorcycle back at the end of the agreement, then excess mileage charges will apply. Your motorcycle must also be in fair condition for its age and mileage. Your vehicle is at risk of repossession if you do not maintain the contractual repayments. We receive a commission from the Finance Lender if you take out a finance agreement.

*At the end of the agreement you have three choices:

1. Pay the GMFV in order to own the bike;
2. Hand the motorcycle back.
3. Use any value above the GMFV as a deposit against another bike.
There is no guarantee that there will be any value above the GMFV.

Hire Purchase (HP)

Hire Purchase is a way to buy a vehicle with the flexibility to choose the amount of deposit and the term of the agreement. As this is a fixed interest agreement the monthly payments will not change during the agreement.

This is an agreement secured against the vehicle and you will not own the vehicle until you have made all of the payments, including any option to purchase fee. You can settle the agreement at any point by paying the outstanding amount.

Your vehicle is at risk of repossession if you do not maintain the contractual repayments. We receive a commission from the Finance Lender if you take out a finance agreement.

Representative Finance Example For Online Purchases PCP HP
Customer deposit	£99
Monthly payments	£272.01
Cash Price	£15,000
Amount of credit	£14,901
Fees	£0.00
Optional final payment	£6,912
Total amount payable	£20,067.48
Annual mileage	8000*
Term	48 months
Fixed rate of interest	6.15%
Representative APR (fixed)	11.70%

Customer deposit	£2,158
Monthly payments	£227.90
Cash Price	£10,956
Amount of credit	£8,798
Fees	£0.00
Total amount payable	£13,097.20
Term	48 months
Fixed rate of interest	6.09%
Representative APR (fixed)	11.70%
We are a credit broker and not a lender. Finance is subject to status and finance company acceptance. We can introduce you to a limited number of lenders and their finance products. We will typically receive a commission from the lender, as either a fixed fee or a fixed percentage on the amount you borrow. The commission we earn does not change by the type of finance. A guarantee may be required. The finance rate will vary dependent of customer personal circumstances for in dealership purchases. *Excess mileage charge of 4p per mile. If you exceed this annual mileage then excess mileage charges will be applied by the finance provider at the end of the agreement should you choose to return the vehicle.
We are a credit broker and not a lender. Finance is subject to status and finance company acceptance. We can introduce you to a limited number of lenders and their finance products. We will typically receive a commission from the lender, as either a fixed fee or a fixed percentage on the amount you borrow. The commission we earn does not change by the type of finance. A guarantee may be required. The finance rate will vary dependent of customer personal circumstances for in dealership purchases.