Honda Hire Purchase (HP)
Hire Purchase is the simplest and most straightforward way Honda Financial Services can help you to fund your motorcycle. The interest rate and monthly payments are fixed for the duration of the agreement and when the last payment is made, the motorcycle is all yours.
Who is HP for?
HP may be right for you if you would like the flexibility of no mileage restriction and the ability to budget effectively.
How HP works
Choose the motorcycle you want and agree how much deposit you would like to put down.
Step 1
Before you start your agreement, you can adjust the term to best suit your ideal monthly budget, from anywhere between one and five years. The remaining cost of the motorcycle, plus interest, is paid in equal monthly payments.
Step 2
Once you’ve paid all the monthly payments and the option to purchase fee, you own the motorcycle outright.
Step 3
You could then choose to go back to your Honda dealer and part exchange your motorcycle for another Honda.
Key features
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There are no mileage restrictions as part of the finance agreement.
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The Total Amount Payable (overall cost) is typically lower than Personal Contract Purchase (PCP) on an agreement over the same term.
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Fixed interest rate for the duration of your agreement - monthly payments do not change.
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14 day right to withdraw.
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Can partially or fully settle early (subject to the terms of your agreement).
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You have the right to Voluntary Termination if your circumstances change.
Key Considerations
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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.
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Because there is no GFV, you have less protection against depreciation than with a PCP.
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You will not own the vehicle outright until all regular payments and any option to purchase fees are paid.
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To keep monthly payments down, you may need to take your loan over a longer term.
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If you choose Voluntary Termination, you will be required to pay any amount needed to reach half of the total amount payable under the agreement. If this amount cannot be paid in full, the outstanding balance may be recorded as a default on your credit profile.
Related FAQs
HP is available on used Honda motorcycles too
HP is available for used motorcycles bought through your Honda dealer. We will be able to help you choose the right motorcycle and the right finance product for you.
Newcastle Motorcycles are licenced by the FCA (registration number 660607) as a non-independent credit broker. Newcastle Motorcycles has access to a limited number of lenders as a non-independent credit broker. Finance available subject to credit acceptance to UK residents aged 18 or over. Guarantees and indemnities may be required. Terms and conditions apply. Offer may be varied, withdrawn or extended at any time. All figures are correct at time of publication but may be subject to change. What does this mean? Essentially, we’re non-independent because we only work with a limited number of finance providers and cannot search nor advise on the whole market for your best option to fit your circumstances. What’s a credit broker? We make introductions on your behalf to a limited number of lenders, but we are not the lender itself. Meaning for example, when you take out finance on a new Honda motorcycle we may introduce you to Honda Finance Europe (the lender) and your finance agreement is between you and them. We are not an independent financial advisor. We may advise you on the products, subject to your personal circumstances, though you are not obliged to take our advice or recommendation. What about fees and commission? We don’t charge you a fee for an introduction to a lender, however the lender typically may pay us commission for a successful introduction. We do not charge you a fee for our services. Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The lenders we work with could pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.” All of our finance is offered at the same rate to each customer, we don’t vary the rate. How am I scored? Different lenders have different methods of scoring you for your suitability of your finance application. We are not privy to the score, nor how they arrive at it. We only get notification of an acceptance, referral or decline. If you want to speak to any of the finance providers, their details are below. If you want to make a complaint Please telephone or write to the following address in the first instance. We’ll endeavour to resolve any complaint quickly and painlessly. If you want to write to the finance houses directly, please see the details below Newcastle Motorcycles Ltd, Dealer Principal, 195-199 Scotswood Road, Newcastle. NE4 7DD Tel: 0191 282 2868
