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.
How HP works
Watch our short video to learn more about HP.
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.
New motorcycle finance offers
View the latest offers available on our range
Compare finance options
See how Personal Contract Purchase compares to Hire Purchase and Restricted Use Loan side by side.
Download brochure
Download our Product Guide for a full explanation of our finance products - including how they work, what to expect during your agreement and your options at the end.
Related FAQs
Who is eligible for finance with Honda Financial Services?
· Anyone who has lived in the UK for at least 3 years
· Over 18 years old
· Holds a valid driving licence
· Has an email address and mobile number
· Holds a UK personal current account for the purposes of making the monthly repayments by direct debit
· Has a regular income to cover repayments
· Will be the registered keeper of the motorcycle
Can I sell my motorcycle?
You will be the registered keeper (with a V5 document from the DVLA to prove it) but the ‘legal title’ of the motorcycle will belong to Honda Financial Services until you make the final payment (including any applicable purchase fees). This means that if you want to sell the motorcycle before the end of your Personal Contract Purchase or Hire Purchase agreement, the outstanding amount will have to be settled in full.
Can I end my Hire Purchase agreement early and what are the conditions?
Yes. You can settle your HP agreement at any time.
There is no penalty for settling early. Please call Customer Support on 0345 128 8908 and we will be happy to give you a settlement quotation.
You can make lump-sum repayments as often as you like or pay off the whole amount early. This could reduce the amount of interest due – in which case, you’ll get a rebate based on a statutory formula set out in the Consumer Credit Act 1974 (CCA).
If you have a Hire Purchase agreement and make a lump-sum payment, you have two options: reduce the term of the agreement or reduce your monthly payments.
HP is available on used Honda motorcycles too
HP is available for used motorcycles bought through a Honda dealer. They will be able to help you choose the right motorcycle and the right finance product for you.