There are various ways to finance your next used or new motorbike or quadbike purchase. Below we cover the three most popular methods in the current market. GoFinance.co.uk will discuss your options and advise which product would be most suited to your circumstances and needs.
Hire purchase (also known to us in the trade as ‘HP’) is the most commonly known way to finance your next vehicle. It is straightforward in how it works – You choose the vehicle; the finance company will pay the selling dealership. You are then essentially hiring the vehicle throughout the term of the agreement from the finance company. Once you have made all of your monthly repayments you are given the option to take ownership of the vehicle which will switch the title into your name.
Personal Contract Purchase (or PCP to us in the industry) is similar and also different to hire purchase – let us explain. As with HP you will choose the vehicle and the finance company will pay the selling dealership. As with HP you will still make monthly repayments to the finance company, but you are only paying a portion of the total amount due (With PCP your monthly payments will be lower than HP) You will then have a lump sum (Also known as a balloon payment) to pay at the end of the agreement. At the end of the agreement you can do one of three things; You can simply give the vehicle back; You can part exchange the vehicle and take out a new PCP deal on a new vehicle or you can buy the vehicle by paying the pre-agreed balloon payment.
A Personal loan (also referred to as a Vehicle Loan) is different to Hire Purchase and Personal Contract Purchase in respect of the loan not being secured on the vehicle you buy. Usually Personal Loan providers can offer better rates of interest than HP / PCP providers. Another difference with a Personal Loan is the way the loan funds are paid – unlike HP/PCP the money is transferred to you so you can purchase the vehicle whereas with the other two products the funds are sent direct to the selling dealership.
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GoFinance.co.uk a trading style of Superbike Loans Ltd. Registered in England and Wales (Company Registration number 08512842)Registered Address Cottage Street Mill, Cottage Street, Macclesfield, Cheshire, SK11 8DZ. Authorised and Regulated by the Financial Conduct Authority (number 671579).Registered with the Information Commissioners Office (registration number Z3193267).GoFinance.co.uk is a credit broker and not a lender. We can introduce you to a limited number of finance lenders and for such introductions we may receive commission.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
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