‘Get your­self a new bike for less’

Motorcycle News (UK) - - Buying & Selling - DEPUTY ED­I­TOR RICHARD NEW­LAND

Per­sonal Con­tract Pur­chase (PCP) now fi­nances nearly 30% of all new bikes sold in the UK, and it’s grow­ing fast. But it might not be right for you, so make sure you un­der­stand what it is and how it works.

You can have these new bikes for less than you might have ever imag­ined – and what’s more you can have an­other new one in three years’ time, prob­a­bly with­out in­creas­ing your monthly out­lay, or hav­ing to find a fresh de­posit.

This is how it works…

● Work out what you can af­ford as a de­posit and in monthly re­pay­ments for the du­ra­tion of the con­tract. ● You can get PCP on any amount from £1500 up­wards. ● Choose your new mo­tor­cy­cle (or a used one – bikes up to three years old can also of­ten qual­ify). ● Set a re­pay­ment term of be­tween two to four years. ● Set your an­nual mileage at up to 24,000 miles a year. Your mileage will af­fect your monthly pay­ments. ● De­cide which end-of-agree­ment op­tion is best for you when the time comes – most roll on to an­other bike.

Be aware that… ● You do not own the bike, and won’t un­less you pay the fi­nal bal­loon fig­ure. ● A sig­nif­i­cant pro­por­tion of the credit is de­ferred un­til the end of the con­tract, and it’s not the cheap­est route to mo­tor­cy­cle own­er­ship. ● You must have fully com­pre­hen­sive in­surance. ● Ex­cess mileage charges ap­ply. ● Abuse or ne­glect will dam­age. your bike’s guar­an­teed fu­ture value. ● The bike is at risk of re­pos­ses­sion if you do not main­tain re­pay­ments.

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