Buy new on PCP
This is how the system works...
O Get your budget worked out, based on what you can afford as a deposit and as monthly repayments for the duration of the contract
O You can get PCP on any amount from £1500 upwards
O Choose your new motorcycle (or a used one, as bikes up to three years old can also qualify; see right)
O Set a repayment term of between two and four years
O Set your annual mileage up to 24,000 miles a year. Your annual mileage will affect your monthly payments and future value. Most deals are based on 4000-6000 miles
O Decide on which end-of-agreement option is best for you when the time comes. Most roll on to another bike
This option’s great if...
O Not owning the bike outright doesn’t bother you
O You like to keep your options open
O You’re after flexible deposit options
O You can work with a mileage allowance of up to 24,000 miles a year (more will incur penalties)
O You want to pay over a period of two to four years in regular, relatively small, monthly payments
O You want to pay equal monthly payments across the term
O You are worried about a fall in the value of the bike (thanks to the ‘G’ in Guaranteed Future Value)
At the end of the contract...
O Part-exchange the motorcycle for another one, subject to settlement of your existing finance agreement
O Return the motorcycle. If it’s in good condition and has not exceeded the allowed mileage you will have nothing further to pay
O Hand over the final payment figure and can keep the bike
Be aware that...
O You do not own the motorcycle and won’t unless you pay the final balloon figure at the end of the term
O You must have fully comprehensive insurance cover in place throughout
O Excess mileage charges apply and some are quite hefty
O Abuse or neglect will damage your bike’s guaranteed future value
O Your motorcycle is at risk of repossession if you do not maintain contractual repayments.