At Chelsea Motorcycles Group, we understand that not everybody can afford to buy a motorbike. Even second-hand motorcycles can still be quite costly. Because of this, some riders end up buying a motorbike they didn’t particularly want, or like, just because it was within their price range. But at CMG, we say, don’t settle for anything less than the best. Choose the motorcycle you want and if you can’t afford to buy it, take a look at our motorcycle finance options. We have three motorbike finance options. We have a Motorcycle Personal Loan, A motorcycle hire purchase finance option and a motorcycle personal contract purchase. Here we will explain the differences between each of these finance options, to help you to choose the most suitable.
Motorbike Finance Option 1: The Motorcycle Personal Loan
How it works. With this motorbike finance option you pay a deposit, choose your term and pay your monthly repayments. At the end of the motorcycle personal loan term, the bike is officially yours and your liability ends. Your eligibility for a motorcycle personal loan depends upon your personal credit score and credit history. This will be used to determine if you are able to pay back the loan from the income you make.
Ownership of the motorcycle. The motorcycle finance lender does not secure the loan against the motorbike, so technically it is always yours. The bike officially becomes yours (as in it cannot be taken away from you) once you’ve paid back the full loan amount.
Changing your motorbike. You can swap your motorcycle for a different bike at any time, you do not need to wait until you have paid the loan amount.
Motorcycle Finance Option 2: The Motorcycle Hire Purchase
How it works. The motorcycle hire purchase is very similar to the motorcycle personal loan, although there are some differences. Just like with a motorcycle personal loan, you need to have a deposit and will agree a payment term for your motorcycle hire purchase.
Ownership of the motorcycle. Unlike with a motorcycle personal loan, you do not own the motorbike until you have completely finished paying off the motorcycle hire purchase amount. The lender supplying the motorcycle hire purchase finance option will secure the loan against the motorcycle. So it is important to keep up with your repayments.
Changing your motorcycle. You are able to change your motorcycle for a different bike whenever you like. However, you do need to completely pay off the motorcycle hire purchase amount before you are able to change your bike.
Motorcycle Finance Option 3: The Motorcycle Personal Contract Purchase
How it works. With a motorcycle personal contract purchase you lease the bike from the motorcycle finance company over a specified term. Like with the other motorbike finance options, you pay a deposit and monthly payments. There are often limitations, such as an annual mileage limit.
Ownership of the motorcycle. As you are leasing the bike, the ownership remains with the motorcycle finance company. At the end of the term, you have the option to pay a Guaranteed Final Value (GFV) to take ownership of the bike. Alternatively, you can hand the bike back to the motorbike finance company.
Changing your motorcycle. At the end of the term, you have the option to part exchange your motorbike for a new one.
For more information about our motorcycle finance options, contact us now. Or to apply for finance, complete our online form: https://www.chelseamotorcycles.co.uk/scooter-motorbike-finance/