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
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There are no mileage restrictions as part of the finance agreement.
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The Total Amount Payable (overall cost) is typically lower than Personal Contract Purchase (PCP) on an agreement over the same term.
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Fixed interest rate for the duration of your agreement - monthly payments do not change.
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14 day right to withdraw.
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Can partially or fully settle early (subject to the terms of your agreement).
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You have the right to Voluntary Termination if your circumstances change.
Key Considerations
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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.
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Because there is no GFV, you have less protection against depreciation than with a PCP.
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You will not own the vehicle outright until all regular payments and any option to purchase fees are paid.
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To keep monthly payments down, you may need to take your loan over a longer term.
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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.
Fowlers of Bristol Limited, Company Registration Number 00711079, VAT Number, GB 974 8616 67
Fowlers of Bristol Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486). Permitted activities include advising on and arranging general insurance contracts and acting as a credit broker not a lender.
We can introduce you to a limited number of finance providers. We do not charge fees for our Consumer Credit services. We typically receive a payment(s) or other benefits from finance providers should you decide to enter into an agreement with them, typically either a fixed fee or a fixed percentage of the amount you borrow. The payment we receive may vary between finance providers and product types. The payment received does not impact the finance rate offered.
All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over, Guarantees may be required.
