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There’s no feeling in the world like taking to the road on your very own motorcycle. The feeling of power, grace and unparalleled freedom as you weave through traffic and dextrously navigate roads that would be impassable to a car is something that everyone deserves to experience. Motorcycle enthusiasts ensure a lot compared to their car driving counterparts. They must learn the hard way what happens when one forgets to wear their leathers, they must endure the worried expressions on the face of partners who just don’t get it, and the bemused expressions worn by colleagues who wonder why they don’t just get a car. Nonetheless, that feeling of freedom, responsiveness and raw power and control on the road makes it all worthwhile.

Nonetheless, while motorcycles trump their four wheeled counterparts not only in terms of user experience but in terms of upfront cost, servicing and maintenance costs, paying for them can still be tricky when you don’t have much in the way of disposable income.

Fortunately, there are a range of options available when it comes to financing both new and used motorcycles. However, the right one for you may depend on your own unique circumstances. Here we’ll look at some of the most readily available options so that you can choose the right one for you…

Key considerations

Your circumstances will dictate which way of financing your new motorcycle will be best for you, so here are some key considerations that you’ll need to keep in mind when selecting your finance options;

  • How much do you have readily available to use as a deposit?
  • How much can you afford to spare in monthly payments?
  • Do you already have a motorcycle which you could part-exchange or is this your first bike?
  • What other demands do you have on your income e.g. rent, utilities, direct debits etc.?
  • What is the state of your credit?

These will play a large role in determining which of the following options is best for you…

Hire Purchase Agreements

Hire Purchase Agreements (HPAs) are one of the most basic and common forms of motor vehicle financing. It’s an easy way to spread the cost of your motorcycle and as HPAs tend to last between 2-5 years (although they typically last for 3) you have a long time to break the repayments down into manageable amounts. HPAs can be flexible although the terms are usually dictated by the age, condition and cost of the vehicle. At the end of the agreement, the vehicle is yours to enjoy, part exchange or sell on as you see fit.

This is great for you if- You have a sizeable deposit saved up or a bike which you can part exchange as a deposit. You can afford to pay a reasonable amount every month without needing to pay a final lump sum.

Personal Contract Purchase

Personal Contract Purchase (PCPs) are a similar form of finance to HPAs but they differ in several key ways. Again, a deposit is paid or a part exchange offer is made on a vehicle and terms are arranged for repayment typically over 3-5 years. Unlike a HPA, however, a sizeable portion of the bike’s value is deferred to an optional final payment should you wish to keep the car. Pay it and it’s yours, otherwise you can return it to the dealer. Because of this final “balloon” payment, monthly instalments tent to be cheaper on PCPs.

This is great for you if- You have a sizeable deposit saved up or a bike you can part exchange in lieu of a deposit, but you have significant monthly outgoings which would make a HPA less manageable. It’s also better suited to yours who aren’t particularly bothered about ever owning their bike.

Personal Loan

A less common but no less valid option is to take out a personal loan to cover the cost of your new vehicle. Unlike either a HPA or PCP agreement you own the bike outright at point or purchase which may prove advantageous if, for whatever reason you are no longer able or willing to make loan repayments as you can sell the vehicle privately and use the proceeds to pay off all or the lion’s share of your loan. Keep in mind, however, that personal loans tend to be secured against your property so your home may be at risk if you do not keep up the repayments.

This is great for you if- You do not have enough capital to pay a deposit or a bike to part exchange. You own your own property and you can afford to pay the interest on your loan repayments. Keep in mind that interest rates on a personal loan may be less favourable than a motorcycle finance agreement.

Whichever option you choose, may it lead to years of happy and carefree riding!

If you’d like to explore these options further see this in-depth guide to motorbike finance from Lending Expert.