Motorcycle & Scooter Finance Explained | MSC Nottingham

Motorcycle & Scooter Finance Explained

Making buying your new vehicle easier than you could imagine!

Nothing in life should be complicated that’s why we design our motorcycle & scooter finance packages around you. Keeping things simple, flexible and convenient – our finance is tailored to your circumstances and suited to your needs.

We always strive to offer the best rates when it comes to motorcycle and scooter finance, be it, low rate or even 0% interest free!

Below is a basic explanation of the different types of finance we are able to offer and arrange.

Hire Purchase Finance (HP)

You can spread the cost of your motorcycle or scooter by paying in fixed monthly instalments. With terms from 12 to 60 months and a deposit amount, you can choose the right payment plan that suits your budget.

When you have paid off the finance agreement, and settled the option to purchase fee, the vehicle becomes yours.

Pros for HP Finance

  • No minimum or maximum deposit price, so you can have more control over the amount of finance required
  • Flexible repayment terms to suit your monthly budget
  • Fixed interest rates, so you know exactly what you’re paying every month for the length of the term

Cons for HP Finance

  • You don’t own the vehicle until you’ve made your final payment, which means the vehicle could be repossessed if you do not maintain contractual payments
  • You cannot sell or give the vehicle away until you have paid all of the repayments under the finance agreement

Personal Contract Purchase Finance (PCP)

Spread the cost of your vehicle by paying in fixed monthly instalments with terms from 12 to 49 months.

This product contains a balloon payment at the end of the finance agreement, which usually makes the monthly instalment amounts lower than a traditional Hire Purchase (HP) agreement. This is great for customers who like to change their vehicle frequently.

When you have paid off the finance agreement, and the final balloon payment or Guaranteed Future Value (GFV), the vehicle becomes yours.

Alternatively you can return the vehicle, use it as a part exchange against your next vehicle or refinance the balloon payment into a new HP agreement, subject to finance approval.

Pros for PCP Finance

  • Generally lower monthly repayments than a typical Hire Purchase agreement
  • Flexible repayment terms to help suit your monthly budget
  • No minimum or maximum deposit, so you can have more control over the amount of finance required
  • Fixed interest rates, so you know exactly what you’re paying every month for the length of the term
  • At the end of the agreement you can purchase the vehicle outright, return the vehicle to the lender, use it as part exchange for your next vehicle or refinance the balloon payment into a new HP agreement, subject to finance approval

Cons for PCP Finance

  • You don’t own the vehicle until you’ve made your final payment, including the final balloon payment, which means the vehicle could be repossessed if you do not maintain contractual payments
  • You cannot sell or give the vehicle away until you have paid all of the repayments under the finance agreement
  • Excess mileage charges apply, as documented in the finance agreement prior to purchase
  • If the predicted Guaranteed Future Value (GFV) is set very close to the actual value of the vehicle, there will be little equity to roll onto another deal
  • The vehicle’s future value is based on its condition in comparison to vehicles of the same age and mileage. Any damage that is not down to normal wear and tear will need to be rectified by the customer