Finance Options at Lings KTM

At Lings KTM, 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) - Road Bikes

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 Hire Purchase (HP)?

A hire purchase loan for a motorbike is a financing option that allows you to purchase a motorbike by making regular installment payments over a fixed period. The lender retains ownership of the motorbike until you complete all the payments. Once you finish paying off the loan, ownership of the motorbike is transferred to you. This arrangement gives you the ability to use and possess the motorbike while you're making the payments.

What are the advantages of HP?

  1. Affordable payments over time.
  2. Ownership after completing payments.
  3. Flexible repayment options.
  4. No large upfront payment required.
  5. Fixed interest rates for predictable payments.
  6. Widely available financing option.

What should you consider when opting for HP?

When opting for a hire purchase loan for a motorcycle, it's important to consider the following:
  1. Monthly Payments: Monthly payments may be higher compared to other finance options like PCP because you're paying off the entire value of the motorcycle.
  2. Selling Restrictions: Selling the motorcycle before settling the finance is not possible. The loan must be fully paid off before you can sell it.
  3. Ownership: You won't become the owner of the motorcycle until you have made all the repayments according to the agreement.
  4. Responsibilities: You are responsible for maintaining proper insurance, upkeep, and possession of the motorcycle until the full value is paid off.
Carefully weighing these factors will help you make an informed decision about whether a hire purchase loan is the right choice for your motorcycle purchase.

Can I settle my HP agreement early?


Yes, you have the option to end your finance agreement early. Each finance agreement has provisions that allow for early termination. Typically, once you have completed at least two-thirds of the agreement, you can explore these options.

In a Hire Purchase agreement, you can settle the finance early by paying a settlement fee. This fee covers any outstanding installments and remaining interest payments. Once the settlement fee is paid, you gain full ownership of the motorcycle ahead of schedule.

With a Personal Contract Purchase (PCP) agreement, you can also bring the agreement to an early end by paying a settlement fee. At this point, you have two options. You can either return the motorcycle or, alternatively, choose to take full ownership by paying the remaining Guaranteed Minimum Future Value (GMFV), often referred to as a balloon payment.