Motorbike finance – everything you need to know

Note: This is a guest post.

Are you looking for motorbike finance but don’t know where to start? It can be quite daunting, especially if you’re unsure of finance jargon and terms and conditions. But don’t worry, Refused Car Finance have put together a list of what you should know about motorbike finance!


What is motorbike finance?

Motorbike finance is a financial agreement which allows you to pay for a bike in monthly payments. The finance you could be offered to fund your bike is based on your affordability and monthly budget.  So, you can shop for your bike with confidence and know that you can comfortably afford your repayments. Motorbike finance is a great way to fund your next bike as it allows you to spread the whole cost across an agreed term and monthly payment plan.


What are the different types of motorbike finance?

Within motorbike finance, there are three main types which tend to be the most popular way to fund your next bike. Depending on what you want out of your finance deal, will determine which type is best for you. Hire Purchase (HP) is a finance agreement which allows you to pay for your bike in affordable monthly payments. It will usually be based on a fixed rate APR over your agreed term length. This is a great option if you are looking to own the bike at the end of your agreement. Personal Contract Purchase (PCP) is similar to HP as you pay in monthly instalments but at the end of your agreement you have the option to pay a lump sum to own the bike or you can hand the bike back. Within a conditional sale agreement, you are automatically the owner of the bike when you sign the agreement. You are agreeing to make all the payments each month over the agreed term and be the registered owner of the vehicle.


Can I get any motorbike on finance?

Different lenders have different rules on which motorbikes you can buy. Some restrictions can relate to the age, mileage and engine size of the bike. For example, lenders may ask that the bike is no more than 6 years old at the start of the agreement, have a mileage of 30,000 or less and a minimum engine size of 125cc and a maximum of 1198cc. You can also get finance for both new and used motorbikes.


Can I get motorbike finance with bad credit?

Your credit score does play a factor in your motorbike finance application but it’s not the be all and end all. You may think applying for motorbike finance with bad credit is impossible, but there are many options out there for you. You could have bad credit for a number of reasons such as bankruptcy, missed payments, defaults, county court judgements and more. Usually, having good credit means you will be offered lower interest rates and will pay less. Applying motorbike finance with bad credit could mean that you have a higher interest rate but with reasonable and affordable monthly repayments. Don’t make too many applications for motorbike finance in a short amount of time as it can harm your credit score and it also suggests to lenders that you are desperate for finance. If you’re applying online, try using a soft search application form. A soft search checks your credit file without leaving a mark on it, so you can apply with peace of mind!


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