Personal Contract Purchase (PCP)
PCP is great if you want to change or upgrade your motorcycle at the end of the finance term.
Under a PCP agreement we guarantee the minimum the vehicle will be worth at the end of your agreement based on the agreed annual mileage and maintenance of the vehicle. This value is known as the ‘Guaranteed Minimum Future Value’ and by deferring this to the end of the term, your customer could benefit from lower fixed monthly payments compared to our HP and CS products.
A deposit of around 10% is usually required and the term can be 1 – 4 years. The finance is also secured against the vehicle.
At the end of the term you have three options:
Part-exchange it – use any value left in your vehicle to part-exchange it for a new one.
Buy it – pay off the final payment (Guaranteed Minimum Future Value plus the Option to Purchase Fee (OTP) in one lump sum and become the legal owner.
Hand it back – simply hand back the vehicle and the keys, pay any charges incurred, and walk away.
Conditional Sale (CS)
With CS, you put down a deposit and borrow the remaining cost of the vehicle, paying it back over the term of the agreement which can be up to five years. Choose this option if you want to own the vehicle at the end of the term.
Repayments are fixed throughout the agreement and spread equally throughout the term. The amount you borrow is also secured against the vehicle. There is no lump sum to repay at the end of the agreement; however, under the terms of a CS agreement, you have an obligation to pay the title transfer fee and then you become the legal owner of the vehicle. A deposit is usually required, and the term can be up to 60 months. The finance is also secured against the vehicle.
Hire Purchase (HP)
With HP, you can spread the cost of the vehicle over a set term to own the vehicle at the end of the agreement. Choose HP if you want to repay the full cost of the vehicle. Simple and fixed repayments, with an option to hand the vehicle back after your final repayment.
A deposit is usually required, and you can spread the repayments up to 60 months. The amount you borrow is secured against the vehicle.
At the end of the term there is no lump sum. Instead, you’ll have two options:
Pay an ‘option to purchase’ (OTP) fee and become the full legal owner of the vehicle
Hand the vehicle back to us and walk away.