OPTION 2 HIRE PURCHASE
If you want a bit of security with your purchase, and you’re comfortable with the bike belonging to the finance company until you’ve paid off the whole contract, then you could go with this option – a good oldfashioned hire purchase contract.
The benefit is that you can buy the motorcycle you want while spreading the cost over a period that makes it more affordable within your financial landscape.
After paying an initial deposit you get to ride away on your new pride and joy, on the strict agreement that you’ll continue to pay the remaining instalments to the end of the term. Once you’ve made all the payments – the motorcycle is wholly yours to do with as you wish.
Most dealers offer Hire Purchase through one or two big companies – this is how it works... O Get your budget worked out based on what you can afford to repay – you can borrow any amount from £1500 O Choose your new motorcycle (or a used one – higher value bikes up to 12 years old can usually qualify) O Set a repayment term of one to five years, based on your monthly budget
This option’s great if... O You want flexible deposit options – 0% deposit, and 0% finance may even be available, subject to status O You want a simple repayment sum at fixed interest rates, so you’ll always know the amount of each payment for the duration of the contract period O You want to own your motorcycle outright at the end of the contract
Be aware that... O You must have fully comprehensive insurance during the finance term O Your motorcycle is at risk of repossession if you do not maintain your agreed repayments O You have no protection against the bike’s depreciation in value O You do not own the motorcycle until all of the payments have been made