FINANCE OPTIONS AT Brayley Honda Motorcycles

Funding solutions explained

Personal Contract Purchase (PCP)

Personal Contract Purchase is a finance product offered by Honda Financial Services that provides a flexible funding solution to get you on your new motorcycle and out on the road with monthly payments that are lower than some alternative finance products.

How it works

PCP typically offers a lower monthly payment than Hire Purchase. This is because we defer part of your loan repayment until the end of the agreement, when you will have three options.

• Firstly, choose the motorcycle you want, and agree how much deposit you would like to put down.
• Then, estimate how many miles you will ride each year, and then agree how long you would like your agreement to run, between two and four years.
• Then, estimate how many miles you will ride each year.
• We will then use this information to calculate a Guaranteed Future Value (GFV) - this is what we predict the value of your motorcycle to be worth at the end of the agreement.
• The Guaranteed Future Value is deferred until the end of your agreement.
• Because this value is based on your estimate annual mileage it is important to give an accurate estimate, as you may have to pay excess mileage charges if you exceed your total agreed mileage for the agreement.
• Your monthly payments are worked our on the difference between the GFV and the price of the motorcycle once your deposit has been taken off and interest added. This means you have lower, fixed monthly repayments than with Hire Purchase.

You decide

At the end of your agreement you have the flexibility of 3 options:

Retain - you can keep your motorcycle - pay the final payment and the option to purchase fee, and you will own the motorcycle outright.

Return - you can hand your motorcycle back to us without paying the final payment - if you have exceed your agreed mileage or the motorcycle is not in a good condition, then where may be additional charges to pay. Excess mileage charges will be explained before you sign the agreement, so you will know what these may be if you go over your estimated mileage.

Renew - you can part exchange your motorcycle and subject to market value conditions, this should cover off the cost of the final payment.

Choose the right product

Personal Contract Purchase may not be right for you so please review our other finance products or speak to your Honda dealer, to make sure you choose the right product to suit your needs.

It is important that the product you choose should provide a monthly payment that is sustainable, whilst also meeting your needs and circumstances best. Your Honda dealer will be happy to assist you with this.

Product Features and Considerations

There are some aspects of Personal Contact Purchase (PCP) that you need to be aware of to help you make an informed choice to decide if PCP is right for you.

• As your PCP agreement includes a Guaranteed Future Value (GFV) you have the ability to return the motorcycle to us (subject to the terms of the agreement). This provides you with some protection from market depreciation.
• You can withdraw from your PCP agreement within 14 days from the start of your agreement, You can also partially or fully settle your agreement at any time (subject to the terms of the agreement).
  
  

Personal Contact Purchase (PCP) may not be the right product for you for the following reasons:

• If you are a high mileage user then PCP is unlikely to be suitable for you as there is a maximum total contracted mileage limit.
• If you prefer to change your motorcycle after more than 4 years then PCP may not be right for you as the maximum PCP term is 4 years.
• Interest is payable on the amount you borrow including the Guaranteed Future Value (GFV). The Total Amount Payable (the overall cost) is likely to be higher than a Hire Purchase agreement with the same loan amount and term, as your balance will reduce slower due to the deferred GFV.
• If you do more miles than you estimated and/or there is damage to the motorcycle, there may be additional charges if you decide to return your car to us.
• You are not guaranteed to have any equity at the end of the agreement, if market conditions mean you will require an additional deposit if you choose to part exchange at the end of the agreement.
• You will own the motorcycle outright once all regular payments, GFV and any option to purchase fees are paid.

Hire Purchase (HP)

Hire Purchase is the simplest and most straightforward way Honda Financial Services can help you fund your new Honda motorcycle. Interest rates and monthly payments remain fixed throughout the full term of the Hire Purchase agreement, and as soon as the final payment has been made the motorcycle is all yours.

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How does it work?

• Choose the motorcycle you want, and agree how much deposit you'd like to put down.
• The rest of the cost of the motorcycle, plus interest, is paid in equal monthly payments.
• Before you start your agreement, you can adjust the term to best suit your ideal monthly budget, from anywhere between one and five years.
• Once you've paid all the monthly payments and the option to purchase fee, you own the motorcycle.

Choose the right product

​Hire Purchase may not be right for you to please review our other finance products or speak to your Honda dealer, to make sure you choose the right product to suit your needs.

It is important that the product you choose should provide a monthly payment that is sustainable, whilst also meeting your needs and circumstances best. 

Product Features and Considerations

• There are some aspects of Hire Purchase (HP) that you need to be aware to help you make an informed choice to decide if HP is right for you.
• There are no mileage restrictions as part of the finance agreement.
• The Total Amount Payable (overall cost) is typically lower than PCP on an agreement over the same term.
• You have the right to withdraw from your HP agreement with 14 days from start of your agreement. You can also partially or fully settle your agreement at any time (subject to the terms of the agreement).
• With Hire Purchase there is no deferred payment amount (the Guaranteed Future Value or GFV) so you may pay more a month compared to PCP.
• Because there is no GFV, you can pay more a month compared to PCP.
• You will not own the motorcycle outright until all regular payments and any option to purchase fees are paid.
• To keep monthly payments down, you may need to take your loan over a longer term.

Restricted Use Loan (RUL)

Restricted Use Loan is a finance product from Honda Financial Services to help finance accessories, clothing or even your new Honda bike. It allows you to take ownership of the goods from the start of your agreement.

How does it work?

• Choose the motorcycle, clothing and accessories you want.
• Once you've decided what products you would like to finance, agree how much deposit you'd like to put down.
• You can adjust the term to best suit your ideal monthly budget, anywhere between twelve and sixty months.
• The rest of the cost of the motorcycle, clothing or accessories, plus interest, is paid in equally monthly payments.
• A Restricted Use Loan provides you with an instant ownership of the goods, as you can use the funds to purchase them. You then pay all the agreed loan instalments until the loan value and interest has been paid in full.
• There are some aspects of Restricted Use Loan that you need to be aware of to help you make an informed choice to decide if RUL is right for you.

Choose the right product

Restricted Use Loan may not be right for you so please review our other finance products or speak to your Honda dealer, to make sure you choose the right product to suit your needs.

It is important that the product you choose should provide a monthly payment that is sustainable, whilst also meeting your needs and circumstances best. 

Product Features and Considerations

• There are some aspects of Restricted Use Loan (RUL) that you need to be aware to help you make an informed choice to decide if RUL is right for you.
• If you use our RUL to fund your motorcycle, there are no mileage limits as part of the finance agreement.
• If you use our RUL to fund your motorcycle, the Total Amount Payable (overall cost) is likely to be lower than PCP on an agreement over the same term.
• You have the right to withdraw from your RUL agreement within 14 days from the start of your agreement. You can also partially or fully settle your agreement at any time (subject to the terms of the agreement).
• You take ownership (title) of the goods purchase with the loan at the start of the agreement, not when you make the final payment. Unlike a PCP or HP agreement, our RUL is not secured against the motorcycle.
• If applicable, clothing and accessories not linked to the motorcycle can be included or funded separately using our RUL Product.
• RUL may be more suitable for funding your motorcycle if you play to use the motorcycle for delivery work and are not eligible for our Hire Purchase or Personal Contract Purchase products.