Motorbike finance explained

Roman Danaev

Motorcycling is a long-term passion and many people seek to fulfil their thirst for adventure by purchasing their very own bike of their dreams. While typical motorcycles might not cost as much as a new car, the larger models could still set you back a fair amount, particularly when you add insurance, tax and other add-ons into the equation.

However, many types of bikers can now benefit from motorbike finance, since there are several options available for a wide range of people, making it easier than ever to own a motorbike. Read below to understand some FAQs in relation to purchasing a bike on finance.

Who needs motorbike finance?

There is a big market in bike finance for young riders, who seek to purchase their very first motorbike instead of, or along with, a car. Normally, this will be a 50cc or 125cc bike, scooter or moped, which are all a good place to start for new riders. Young people often do not have the savings to outright buy their motorbike, so finance is a great option and allows them to spread out the cost of payments over a defined period.

Finance allows the customer to purchase a bike with a comparatively low deposit, and in certain cases with no deposit at all.

Can I still get bike finance with a bad credit score?

It is understandable that not every person in the UK will have a perfect credit score, which is why we work with a wide range of lenders in order to match almost all types of people with a suitable finance deal.

We have built close relationships with a range of lenders, all of which are able to offer different rates and terms depending on the motorcycle and the person applying for finance. This means that we search for the best possible deal for many different circumstances, whether an applicant has a superb credit score, bad credit score or none at all.

At, we specialise in bad credit finance, meaning we accept most applicants with poor or fair credit. Our lenders will take into account your personal circumstances when deciding whether to grant you finance, rather than just looking at your credit rating.

That being said, it is obviously better to have as good a credit score as possible, as it will mean you are given a more favourable rate than someone with a poor credit score since you will be deemed a less ‘risky’ applicant. In a nutshell, lenders are trying to protect themselves from the possibility of a borrower not making their necessary repayments.

What license restrictions apply?

There are regulations in place which determine the type of license someone must possess in order to ride certain types of powered vehicles, which fall into different categories. This means that restrictions will apply when seeking lender approval — if you are unsure, you can discuss this with us when making your initial application.

It’s also important to point out that lenders will take note of any motoring convictions or points on your license when deciding whether to lend to you. Parking and speeding violations will not usually affect your application, but serious offences like driving without a license or drink-driving can certainly affect your position.

What is the minimum age?

All of our lenders will require you to be at least 18 years old before you can apply and qualify for bike finance, though many of these will have a higher age limit than 18 and some will have a maximum age limit too. Age restrictions vary between lenders, so it’s important to shop around and do your research when looking for a suitable finance contract.

What types of finance are available?

Bike finance works in a very similar way to car finance, namely because the different finance options are the same, including hire purchase agreements, PCP and personal loans. We briefly outline each type of finance below;

  • Hire Purchase (HP) — This is the most common and easy to understand types of finance available. The borrower pays an initial deposit, which is normally 10% of the bike, and then pays a fixed instalment each month for a set period of time. The amount and lengths are agreed beforehand. Only once these instalments are paid off will you legally own the motorbike.
  • Personal Contract Purchase (PCP) — This is a popular option for people who like to keep changing their motorbike, getting newer models each time. PCP loans allow people to change vehicles every few years. The loan value in a PCP is the bike’s current value, minus the Guaranteed Minimum Future Value (GMFV), which is the value it’ll be once the payment period is over. If you wish to keep the bike, you will have to make this payment, referred to as the balloon payment. If you don’t want to keep the bike, you can return it to the lender.
  • Personal Loan — This loan type is harder to acquire as it is usually only available to people with good credit scores. The bike is yours to own right away with no deposit requires and there are normally better interest rates and greater flexibility.

How much can I borrow?

The loan amount will depend upon both the lender and your personal circumstances. However, the minimum amount a person can borrow under motorbike finance is £1000, and the limit is £50,000.

What documents do I need?

Along with your license, you’ll need to supply a proof of address and proof of income, so that the lender can determine your ability to pay off the loan. You may need to supply other documents too but this will depend upon the lender in question and their individual requirements.

Top tips

When searching for bike finance, it’s always a good idea to shop around and do thorough research before committing to anything. Moreover, there are several trusted review sites out there, such as Trust Pilot, which will enable you to determine whether a lender is reputable — so be sure to do lots of digging!

If you are worried about your credit rating and the likelihood of getting accepted, there are ways to check your rating online for free, whilst giving you an indication of what finance deals you’ll be able to acquire.

Simply call us for more information and we’ll go through your options before helping to find your perfect bike finance deal.

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