Honda Hire Purchase (HP)
Hire Purchase is the simplest and most straightforward way Honda Financial Services can help you to fund your motorcycle. The interest rate and monthly payments are fixed for the duration of the agreement and when the last payment is made, the motorcycle is all yours.
Who is HP for?
HP may be right for you if you would like the flexibility of no mileage restriction and the ability to budget effectively.
How HP works
Choose the motorcycle you want and agree how much deposit you would like to put down.
Step 1
Before you start your agreement, you can adjust the term to best suit your ideal monthly budget, from anywhere between one and five years. The remaining cost of the motorcycle, plus interest, is paid in equal monthly payments.
Step 2
Once you’ve paid all the monthly payments and the option to purchase fee, you own the motorcycle outright.
Step 3
You could then choose to go back to your Honda dealer and part exchange your motorcycle for another Honda.
Key features
-
There are no mileage restrictions as part of the finance agreement.
-
The Total Amount Payable (overall cost) is typically lower than Personal Contract Purchase (PCP) on an agreement over the same term.
-
Fixed interest rate for the duration of your agreement - monthly payments do not change.
-
14 day right to withdraw.
-
Can partially or fully settle early (subject to the terms of your agreement).
-
You have the right to Voluntary Termination if your circumstances change.
Key Considerations
-
With Hire Purchase there is no deferred payment amount (the Guaranteed Future Value or GFV) so you may pay more a month compared to PCP.
-
Because there is no GFV, you have less protection against depreciation than with a PCP.
-
You will not own the vehicle outright until all regular payments and any option to purchase fees are paid.
-
To keep monthly payments down, you may need to take your loan over a longer term.
-
If you choose Voluntary Termination, you will be required to pay any amount needed to reach half of the total amount payable under the agreement. If this amount cannot be paid in full, the outstanding balance may be recorded as a default on your credit profile.
Related FAQs
HP is available on used Honda motorcycles too
HP is available for used motorcycles bought through your Honda dealer. We will be able to help you choose the right motorcycle and the right finance product for you.
Shirlaws Ltd is registered in Scotland under company number: SC134694. Registered Office Address: Ker-An House Wellington Circle, Altens, Aberdeen, United Kingdom, AB12 3JG. We are a credit broker, not a lender.
Shirlaws Ltd (FRN – 428451) is an Appointed Representative of The Compliance Guys Ltd which is authorised and regulated by the Financial Conduct Authority (FRN – 941360).We act as a credit broker not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. (Written Quotation available upon request.) Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow) and this may or may not affect the total amount repayable. The lender will disclose this information before you enter into an agreement which only occurs with your express consent. The lenders we work with could pay commission at different rates and you will be notified of the amount we are paid before completion. All finance is subject to status and income. Terms and conditions apply. Applicants must be 18 years or over. We are only able to offer finance products from these providers. As we are a credit broker and have a commercial relationship with the lender, the introduction we make is not impartial, but we will make introductions in line with your needs, subject to your circumstances.
Shirlaws Ltd are registered with the Information Commissioner's Office under registration number: Z4855244.
