WHAT ARE MY OPTIONS?

1 Cold hard cash

Buying the bike outright, either with your own money, a personal loan or, if your credit rating is good enough, a 0% credit card (four available as we write but pay off within the term).

Pros You will own the bike outright immediately. Repayment flexibility. APR generally lower than PCP or 0% for some credit cards.

Cons Borrowing smaller amounts will have a higher APR. Credit cards very expensive when 0% period ended.

2 HP (Hire Purchase)

After an initial deposit, you pay set monthly payments for an agreed term. At the end of the term, you own the bike outright. Pros No end-of-term lump sum. No mileage restrictions.

Cons Higher monthly payments.

3 PCP (Personal Contract Purchase)

An initial deposit is followed by monthly payments over (most commonly) 36 months, which cover interest and depreciation. At the end of the term you can either pay a lump sum and keep the bike; return it to the dealer for no cost; or take out a new PCP agreement on another bike.

Pros Low monthly costs. Easy to replace the bike at the end.

Cons Highest overall cost if you keep the bike at the end of the term. Annual mileage restriction.

’Make sure it’s affordable,’ says industry boss Tony Campbell.

“What you can comfortably afford should always be your first consideration and it is important that you understand how each type of agreement works and how the payment options differ. We recommend you purchase your motorcycle through a reputable dealer and ensure they comply with all the latest regulations when discussing finance.”