Honda Restricted Use Loan (RUL)
A Restricted Use Loan from Honda Financial Services helps you spread the cost of your motorcycle, accessories and clothing. You own the goods at the start of your finance agreement and have fixed repayments over an agreed term.
Who is RUL for?
RUL may be for you if you would like to spread the cost of accessories and clothing, as well as your motorcycle and you want ownership as soon as you take delivery.
How RUL works
Step 1
Choose the motorcycle, clothing and accessories you want and agree how much deposit you'd like to put down.
Step 2
You can then adjust the term to best suit your ideal monthly budget, anywhere between twelve and sixty months. For any clothing and accessories that you decide to fund using RUL, the term of the agreement is anywhere between twelve and thirty-six months.
Step 3
The rest of the cost of the motorcycle, clothing or accessories, plus interest, is paid in equal fixed monthly payments.
A Restricted Use Loan provides you with instant ownership of the goods, as you use the funds to purchase them. You then pay all the agreed loan instalments until the loan value and interest has been paid in full.
End of contract options
With a Restricted Use Loan agreement you will be the legal owner of the motorcycle once you take delivery.
Once you pay the final payment, your agreement with us comes to an end.
You may choose to part exchange your motorcycle.
Key Features
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If you use RUL to fund your motorcycle, there are no mileage limits as part of the finance agreement.
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You take ownership of all the goods purchased at the start of your finance agreement. unlike a PCP or HP agreement our RUL is not secured against the motorcycle.
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Clothing and accessories not linked to the motorcycle can be funded using RUL. There is a maximum term of 36 months if funded separately to the motorcycle.
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The Total Amount Payable (TAP) is likely to be less than if you funded your motorcycle with a PCP over the same term.
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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).
Key Considerations
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With RUL there is no deferred payment (Guaranteed Future Value), so you may pay more a month compared to PCP over the same term.
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You have none of the Voluntary Termination or Repossession rights, which apply to HP and PCP under the Consumer Credit Act (CCA)
Related FAQs
RUL is available on used Honda motorcycles too
RUL can be used to buy a used motorcycle from a Honda dealer, along with accessories and clothing. Your dealer 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
