Finance Options at Lings

At Lings Husqvarna, we offer 3 types of Finance; Personal Loan, Hire Purchase (HP) and Personal Contract Purchase (PCP).

As an alternative to paying for your motorcycle up front in a single payment we offer the facility to purchase the bike on finance. These finance products allow you to spread the cost of the motorcycle over a period of time, i.e. 3 years. We offer Personal Loans, Hire Purchase (HP) and Personal Contract Purchase (PCP) finance products, with these products being detailed below:

Personal Loan

A Personal Loan, also known as an Unsecured Personal Loan is a loan that isn't secured against any asset. The advance is based on your credit history and ability to repay the loan from personal income. Repayment is usually through fixed amount installments over a fixed term. Beneficially since the loan is not secured on your motorcycle you can change your bike without having to pay off the loan.

Hire Purchase (HP)

A Hire Purchase agreement is very similar to a Personal Loan in so much as you purchase the motorcycle by making installment payments over a period of time. Where the Hire Purchase differs is that the loan is secured against the motorcycle and ownership will not be obtained until the full amount of the agreement is paid.

Personal Contract Purchase (PCP)

A Personal Contract Purchase agreement allows the motorcycle to be leased from a finance company over a fixed term and you then have the option to return or purchase the motorcycle at the end of this contract. So you pay a deposit, a monthly amount for the duration of the PCP contract term and then a final purchase amount should you want to buy the motorcycle at the end of the contract. The Guaranteed Final Value (GFV) is the amount you would have to pay at the end of the agreement should you wish to purchase the vehicle, and this figure is agreed at the start of the arrangement and is subject to a mileage limit. A major benefit of this scheme is that it allows you to keep your monthly payments down, and is often the most beneficial type of finance for those who change vehicle on a regular basis.



What is Personal Contract Purchase (PCP)?

Personal Contract Purchase (PCP) is a finance product that allows you the opportunity to buy a new or a used motorcycle.

It is similar to a Hire Purchase agreement as you will usually pay an initial deposit, followed by monthly installments over a term typically between 18 to 48 months.

What makes PCP different to Hire Purchase (HP) is that your monthly installments are paying off the depreciation of the motorcycle​, and not its entire value, over the course of the term. Then, when you get to the end of your agreement, there is a final, balloon payment that must be made if you want to keep the motorcycle. The balloon payment is often referred to also as the Guaranteed Future Value (GFV).

How does PCP actually work?​

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When you have chosen your vehicle, you will then agree your annual mileage and decide on the agreement term with one of our Business Managers.

We will then determine the Guaranteed Minimum Future Value (GMFV) of the vehicle at the end of the agreement and work out a deposit and monthly amount that works for you.

At the end of your agreement you will then have three options:

Return – Simply return the motorcycle the back to us 
Retain – Keep the motorcycle by paying the optional final payment
Renew – Trade it in for another motorcycle

For a quotation, help, or advice contact us and ask to speak to one of our Business Managers.

What are the advantages of PCP?

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  • Monthly payments on a motorcycle financed by PCP are usually lower than if your motorcycle is financed by a Hire Purchase agreement.
  • If you decide not to buy the motorcycle, you can simply walk away when you've made all the payments.
  • Similar to PCH, you can drive away a new or used motorcycle, every few years (dependent on the chosen term) without worrying about selling it on.
  • If your motorcycle is worth more than the Guaranteed Future Value then you can use that equity towards a deposit on a new motorcycle.

What should you consider when option for a PCP?

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  • If you want to buy the motorcycle you will need to pay your final balloon payment (the Guaranteed Future Value).
  • Similar to PCH, you will need to agree on a mileage allowance at the beginning of your contract and there may be excess mileage charges if you exceed this.
  • You won’t be able to sell the motorcycle without settling the finance.
  • You won’t own the motorcycle until you have made all of your repayments.
  • You’ll need to keep the motorcycle properly insured, maintained and in your possession until the full value is paid off.

Can I settle my PCP agreement early?

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You can normally settle your agreement early by asking the finance company to provide you with a settlement figure. However, the finance company will require you to pay off the difference between what your motorcycle is worth, and what you still owe and there may be a difference which is known as negative equity. On the other hand, you may find that at the end of your term your motorcycle is worth more than the Guaranteed Future Value, which means you will have some positive equity to contribute towards your next motorcycle.

What is Hire Purchase (HP)?

​Hire Purchase is a way to finance buying a new or used motorcycle. You will normally pay an initial deposit and will pay off the entire value of the motorcycle in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the motorcycle outright. 

What are the advantages of HP?

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  • You’ll be able to drive away a motorcycle that you may not have managed to buy outright.
  • Unlike a PCP or PCH contract, you won't need to estimate your mileage at the start of your Hire Purchase agreement, so you'll avoid excess mileage charges.
  • Once you’ve made your final monthly payment, including the option to purchase fee, you'll have full ownership of the motorcycle.

What should you consider when opting for HP?

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  • Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the motorcycle.
  • You won’t be able to sell the motorcycle without settling the finance.
  • You won’t own the motorcycle until you have made all of your repayments.
  • You’ll need to keep the motorcycle properly insured, maintained and in your possession until the full value is paid off.

Can I settle my HP agreement early?

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The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.

For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid installments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the motorcycle early.

Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the motorcycle back or you have a second option. Through a PCP agreement, you can take full ownership of the motorcycle by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.