PCP is a popular way to finance a new motorbike, particularly through manufacturers’ own finance offers. It keeps monthly payments low and gives you a choice at the end: keep the bike, hand it back or swap it for a new one.
In short
With motorbike PCP, you pay a deposit and lower monthly payments, because part of the bike’s value is deferred to an optional final payment. That final payment is guaranteed by the lender, so if the bike is worth less at the end, you can hand it back and owe nothing more, subject to mileage and condition.
What is motorbike PCP?
Motorbike PCP works the same way as car PCP. The lender works out what the bike is likely to be worth at the end of the agreement, the guaranteed minimum future value (GMFV). That becomes your optional final payment. Your monthly payments cover the difference between the price and that future value, plus interest.
How motorbike PCP works
- Pay a deposit, in cash or by part-exchange.
- Make monthly payments for the term, usually three or four years.
- At the end, choose: pay the final payment and keep the bike, hand it back, or part-exchange it.
- Deposit£900 upfront
- Monthly payments36 × £167.68
- Optional final payment£4,000, guaranteed by the lender
- £900Deposit8% of total
- £6,037Monthly payments55% of total
- £4,000Optional final payment37% of total
At the end, you choose: pay the final payment and keep the bike, hand it back, or part-exchange it.
Total if you keep the bike: £10,937, including £1,937 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%, with a guaranteed final payment of £4,000.
- Monthly payment: about £167.68
- If you pay the final payment to keep the bike, the total is about £10,937
On HP over the same term, you’d pay about £262.85 a month and around £10,363 in total. PCP costs less each month but more overall if you keep the bike. These figures ignore fees and are not a quote.
The final payment is guaranteed
The lender sets the final payment when you sign, and it doesn’t change. If the bike is worth less than that at the end, you can hand it back and walk away owing nothing more, as long as you’re within your mileage limit and the bike is in reasonable condition. If it’s worth more, the difference (equity) can go towards your next bike.
Mileage and condition
You agree an annual mileage at the start. If you hand the bike back over the limit, you’ll pay a charge for each extra mile. The bike also needs to be in good condition, allowing for fair wear and tear. Scuffs from a drop, damaged panels or non-standard parts may be charged. Keep the original parts if you fit accessories.
Pros and cons of motorbike PCP
Pros
- Lower monthly payments than HP
- The final payment is guaranteed, so you can hand the bike back if it’s worth less
- Easy to change bikes every few years
- Often available with manufacturer offers on new bikes
Cons
- Costs more overall than HP if you keep the bike
- Mileage limits, with charges for going over
- Damage beyond fair wear and tear is charged when you hand back
- Modifications may need the lender’s permission
Motorbike PCP FAQs
Can I get PCP on a used motorbike?
Some lenders offer PCP on used bikes, but it’s more common on new ones. HP is widely available on used bikes.
What happens if I drop the bike?
Your insurance should cover accident damage. If the bike is repaired properly, it shouldn’t affect your agreement, but any remaining damage could be charged if you hand it back.
Can I end a motorbike PCP early?
Yes. You can settle early with a settlement figure, part-exchange the bike, or use voluntary termination once you’ve paid half the total amount payable.