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.
THE FINANCIAL CONDUCT AUTHORITY (FCA)
The FCA is the independent watchdog that regulates financial services. Please use this information to decide if our services are right for you.
We are authorised and regulated by the FCA and we act as a Credit Broker. Our FCA Reference Number is 668881. You can check this on the FCA’s Register by visiting the FCA’s website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768.
Farnham Honda is the trading name for Bikenation MCS Limited, Unit 1 9a, Farnham Trading Estate, Farnham, Surrey, GU9 9NN.
DELIVERING A GOOD OUTCOME
We have an obligation to act to deliver good outcomes to our customers. We will do this by supporting you before, during and after the transaction. We will clearly explain to you any significant exclusion terms, all pricing information and your cancellation rights.
CONSUMER CREDIT DISCLOSURE
As a Credit Broker this means that we can introduce you to a limited number of lenders and their finance products. We act on behalf of the lender. We can provide you with a list of our lenders should you wish for. All our lenders are regulated by the FCA.
We do not charge you a fee for our services.
Whichever lender we introduce you to, we will typically receive commission from them. This will either be a fixed fee or a fixed percentage of the amount you borrow.
If you ask us what the amount of commission is, we will tell you in good time before the Finance agreement is executed. The lenders we work with could pay commission at different rates, but the commission we receive does not influence the interest rate you will pay. Our aim is to secure finance for you at the lowest interest rate you are eligible for from our panel of lenders.
All finance applications are subject to status which we will explain to you clearly.
Typically, the finance packages we offer are:
HP – Hire Purchase
PCP – Personal Contract Purchase
PCH – Personal Contract Hire
A full explanation for the different types of finance products available will be provided so you can make an informed choice. You will receive a quotation which will tell you about any other fees relating to your finance agreement made by your chosen lender.
WHAT TO DO IF YOU HAVE A COMPLAINT
If you wish to register a complaint, please contact us by email at cc@farnhamhonda.co.uk, by phone on 01252 8991800 or writing to The Complaints Team, Farnham Honda, 9A Farnham Trading Estate, Farnham, Surrey, GU9 9NN.
If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.
See our Complaints Procedure
