Motorbike finance works much like car finance. PCP and hire purchase are both widely available, especially on new bikes through manufacturers’ own finance, and you can also use a personal loan. This guide explains your options and the costs to plan for beyond the monthly payment.
In short
The main ways to finance a motorbike are PCP, hire purchase (HP) and personal loans. PCP gives lower monthly payments and the choice to hand the bike back at the end. HP costs more each month but less overall, and the bike is yours at the end.
How motorbike finance works
You pay a deposit, often between 5% and 20% of the price (Kandoo), then monthly payments over an agreed term, often three or four years. With PCP and HP, the lender owns the bike until the agreement is paid off. Personal motorbike finance is regulated by the Consumer Credit Act, so you have the same rights as with car finance, such as early settlement.
The main types of motorbike finance
| Type | How it works | Do you own the bike? | Monthly payments |
|---|---|---|---|
| PCP | Deposit, monthly payments, then an optional guaranteed final payment | Only if you pay the final payment | Lower |
| Hire purchase (HP) | Deposit, then fixed payments covering the full price | Yes, after the last payment | Higher |
| Personal loan | Borrow from a bank or credit union and buy the bike outright | Yes, straight away | Depends on the loan |
Which type suits you?
- You like to change bikes every few years: PCP is designed for this, and you can hand the bike back at the end even if it’s worth less than the final payment.
- You want to own the bike: HP, or a personal loan if you can get a good rate.
- You ride a lot of miles: HP has no mileage limit, while PCP charges for going over your limit.
- You want to modify the bike: with PCP or HP, the lender owns the bike, so check your agreement first. A personal loan gives you full ownership from the start.
Costs to budget for
The finance payment is only part of the cost. Budget for insurance, which can be expensive for new riders and powerful bikes; protective kit; servicing; tyres; vehicle tax; and secure storage. Lenders will usually expect you to insure the bike, and it’s worth checking quotes before you commit to a bike.
What lenders check
Lenders run the usual credit and affordability checks. Some may ask whether you hold the right licence for the bike. If your credit history isn’t perfect, see bad credit motorbike finance.
Motorbike finance FAQs
Can I get finance on a used motorbike?
Yes. Both PCP and HP are available on many used bikes, though rates can be higher than on new bikes, and lenders may limit the age of the bike.
Do I need a full licence to get motorbike finance?
Lender requirements vary. Some may ask about your licence, and you’ll need the right licence to ride the bike legally and get insurance. Check before you apply.
Is there a mileage limit on motorbike PCP?
Yes. You agree an annual mileage at the start, and pay a charge per mile if you go over when you hand the bike back. HP has no mileage limit.
Can I get a motorbike on finance with no deposit?
Some deals have no deposit, but your monthly payments and total interest will be higher. Even a small deposit reduces the amount you borrow.