Hire purchase (HP) is the simplest way to finance a motorbike you want to keep. You pay a deposit and fixed monthly payments, and the bike is yours at the end. There’s no mileage limit, which suits riders who cover a lot of miles.
In short
With motorbike hire purchase, you pay a deposit and fixed monthly payments covering the full price plus interest. Once the last payment is made, the bike is yours. Monthly payments are higher than PCP, but you pay less interest overall and there’s no mileage limit.
What is motorbike hire purchase?
HP works the same way for bikes as for cars. The lender owns the bike until your final payment, then ownership passes to you. HP is widely available on both new and used bikes.
How motorbike HP works step by step
- Agree the price of the bike.
- Pay a deposit, in cash or with a part-exchange.
- Choose a term, often between two and five years.
- Make fixed monthly payments.
- Own the bike after the final payment and any small option to purchase fee.
- Deposit£900 upfront
- Monthly payments36 × £262.85
- Own the bikeAfter the final payment
- £900Deposit9% of total
- £9,463Monthly payments91% of total
- NoneFinal paymentBike is yours
Total you pay: £10,363, including £1,363 interest.
Worked example
A bike costs £9,000. You pay a £900 deposit and borrow £8,100 over 36 months at an illustrative APR of 10.9%. Your monthly payment would be about £262.85, and the total you’d pay, including the deposit, would be about £10,363. These figures ignore fees and are not a quote.
Pros and cons of motorbike HP
Pros
- The bike is yours at the end, with no large final payment
- No mileage limit
- Less interest overall than PCP
- Widely available on used bikes
Cons
- Higher monthly payments than PCP
- You don’t own the bike until the last payment
- You carry the risk of the bike’s value falling
- Major modifications may need the lender’s permission
Your rights on a motorbike HP agreement
Personal HP agreements are regulated by the Consumer Credit Act. You can settle early at any time, and once you’ve paid half the total amount payable, you can end the agreement through voluntary termination, as long as the bike is in reasonable condition.
Motorbike HP FAQs
Is HP or PCP better for a motorbike?
HP suits you if you want to keep the bike or ride high mileage. PCP suits you if you want lower payments and to change bikes every few years. Compare the total amount payable on both.
Can I sell a motorbike that’s on HP?
Not until the finance is settled, because the lender owns the bike. Ask the lender for a settlement figure, pay it off, then sell. A dealer can settle the finance for you if you part-exchange.
Can I get HP on an older motorbike?
Often, yes, though some lenders limit how old the bike can be at the end of the agreement.