Both HP and PCP allow you to pay for your motorcycle in monthly payments over an agreed period, with a fixed rate of interest. The key difference is what happens at the end of each contract.

With a HP contract, you’ll own the motorcycle after making the final payment. 

At the end of a PCP contract, you can either hand the motorcycle back to the lender, part exchange it for a new one, or pay the final repayment (including any purchase fee) to keep the motorcycle. New finance agreements are subject to status and affordability checks. If you hand the motorcycle back at the end of a PCP agreement, there may be extra charges if you go over the agreed annual mileage or if the motorcycle has damage over fair wear and tear.

The lump-sum is a one-off optional payment due at the end of your (PCP) finance term, if you decide to keep the motorcycle.

This is normally referred to as the Guaranteed Future Value (GFV) and is an estimated value of how much the motorcycle will be worth at the end of a finance agreement (based on your expected mileage and agreement term). The GFV is not applicable if you intend to hand the motorcycle back at the end of the agreement as part of the goods return option. 

There’s no lump sum payment on the (HP) finance option, which is why monthly payments are usually higher than with the (PCP) option.

APR stands for Annual Percentage Rate and is the amount of interest on your total borrowed amount that you'll pay annually (averaged over the full term of the loan). APRs are typically used when comparing finance options to understand which would be the cheapest option overall.

Rate of interest of the amount of credit per annum, fixed for the duration of the agreement.

Yes, you can. Whether you have a HP or PCP agreement, you have the right to end your agreement at any time by paying off the remaining balance in full.

You also have the right to voluntary terminate your agreement. You will need to return the motorcycle and half of the total amount payable as detailed on your agreement documentation. If you have already paid at least this amount plus any overdue repayments and have taken reasonable care of the motorcycle, you will not have to pay any more.

If you want to pay off your HP agreement early, you’ll own the motorcycle outright but may need to pay an early settlement fee.

For a PCP agreement, the motorcycle’s mileage and condition will need to be line with your terms and conditions.

Potential fees at the end of your agreement

• £10 Purchase fee - This is optional, but you must pay it if you want to become the owner of the vehicle. It is included in the Final Repayment.
• Excess mileage fees - Applicable on PCP and PCH only if you choose to return the vehicle at the end of your agreement instead of paying the final repayment sum. If you have exceeded the agreed mileage allowance, you will need to pay an excess mileage charge. You can avoid this by agreeing a realistic mileage at the outset.
• The vehicle must be in good condition, you will be charged for any repairs outside the acceptable fair wear and tear if this is not the case. You can avoid these charges by taking good care of the vehicle.

During your application, we'll need your personal details, financial information, employment details, address history.

When you apply for finance, there will be a check on your credit profile, and we need your personal details to do this.

Your finance offer is valid for xx days/hours. You'll need to pay your deposit within this time, otherwise the motorcycle you've chosen may go back up for sale on our website.

When you apply for finance, a lender will run a 'credit check’ which leaves a mark on your credit report. Too many credit checks over a short period can affect your credit score for six months, which could reduce your ability to get approved for credit.

We’ll give you an instant finance decision wherever possible, but sometimes it may take longer. We’ll keep you updated on your application’s progress.