Personal Contract Purchase
Motorcycle
Simply explained
This short video provides a simple explanation of buying a motorcycle with PCP (Personal Contract Purchase) finance and how it works.
How it works
When buying a motorcycle with PCP finance, at the start of the agreement you decide the size of any deposit you put down. You also set the term, and the miles you expect to do each year. All this decides your monthly payments. It also determines the cost you defer and pay at the end of the agreement, known as the optional final payment or a balloon payment.
At the end of the agreement, you can either:
- Keep the motorcycle simply make the optional final payment and the motorcycle is yours.
- Return the motorcycle: you’ve nothing more to pay if the vehicles in good condition and you’ve only done the miles you agreed.
- Renew your motorcycle: trade in your current vehicle to pay off the optional final payment, select a new vehicle, and use any remaining value as a deposit for your next motorcycle.
Why it could be right for you
- Lower monthly payments because the optional final payment is due at the end of the agreement.
- Fixed interest rate. So you can pay the same amount each month for the whole agreement (excluding the final payment).
- End of agreement options to keep, return or renew the vehicle.
- Tailored to how long you want to keep the motorcycle for, and how many miles you do.
More you should know
- If you decide to return the motorcycle and you go over the estimated annual mileage, you may need to pay an excess mileage charge.
- If you decide to keep the vehicle, you are required to pay the balloon payment.
- If you’re a limited company, PLC or limited partnership, we can’t offer you this agreement.
This type of agreement is covered by the Consumer Credit Act 1974, which means:
- You can pay off lump sum amounts during the agreement.
- You can settle the agreement early by repaying the required amount.
- You have the right to terminate the agreement early through Voluntary Termination.
Following an accepted application, Santander Consumer will fulfil your Personal Contract Purchase as a Conditional Sale agreement. What does this mean?
Conditional Sale: The agreement is secured against the vehicle. If you do not keep up your repayments, we may take steps to recover the money that you owe us, which may include repossession of the vehicle. Only when all payments under the agreement have been made do you become the owner of the vehicle.