At Moneybarn we offer a Conditional Sale Agreement. This means that you have full use and access to the motorbike for the term of the agreement, as long as you keep up your repayments. Although you won’t legally own the motorbike until all repayments have been made, but you will be the registered and named driver.
If you are wondering what the different types of motorcycle finance are then there are many to choose from. Depending on what lender you decide to go with you could be offered a Hire Purchase, Personal Contract Purchase, or a personal loan. There are a few lenders out there that could offer you a motorbike on a lease, but they are less common.
A Hire Purchase (HP) is where you hire the motorbike from the lender until you have paid off your debt, which is very similar to a Conditional Sale Agreement. Once you’ve finished paying the lender back, there is an option to buy the motorcycle outright. This is referred to as an ‘option to purchase’ fee and is usually less than your monthly payments. You’ll only own the vehicle outright once all repayments have been made and you’ve paid the option to purchase fee.
A Personal Contract Purchase (PCP) might be better suited to some as it gives you more flexibility at the end of your agreement, and the monthly repayments tend to be less. It’s where you pay a deposit followed by monthly repayments for an agreed amount of time. At the end of this time period, you have the choice to either hand back the motorbike or pay an amount to buy the vehicle outright. The cost to buy the vehicle is referred to as the Guaranteed Minimum Future Value fee and will vary depending on the make and model of the motorbike.
You can also get a motorbike on lease, although this is a lot less common than the other motorcycle finance options mentioned above. Leasing in simple terms means that you are renting the vehicle for an agreed period of time, but you will never have the option to purchase it. You pay a deposit, or a larger initial payment, followed by fixed payments over a set period of time.