Finance Information
What are the different finance products, and how do they work?
HP - What you need to know
HOW IT WORKS
- You’ll agree an initial deposit, your agreement term and your monthly repayments with the us.
- Your deposit is taken from the price of the motorcycle.
- You’ll then pay the remaining balance plus interest in equal monthly repayments over the agreed term.
- The finance company buys the motorcycle on your behalf and owns the motorcycle for the duration of the finance agreement.
- After you’ve made all the repayments including any interest, you will become the owner of the motorcycle
- You want to own the motorcycle outright at the end of the agreement.
- You like to budget and know the exact repayment amount each month.
The choice is yours
- Choose any new or used motorcycle, generally up to 14 years old at the end of the agreement. Some exceptions may apply depending on the finance company.
- Minimum and maximum finance amounts may apply.
Things to consider
- You must be at least 18 years old and a permanent UK resident
- You should consider GAP insurance through us or somebody else, if you are unsure if you could afford the difference between what is owed on the agreement and any payout you may receive from your insurers based on it’s value at the time of any loss
- You must have, at a minimum, third party, fire and theft insurance for the full replacement value.
- You must have the relevant driving licence for the motorcycle.
- The motorcycle is at risk of repossession if you do not maintain contractual repayments.
- Protection under the Consumer Credit Act Termination Rights and Protection under the Consumer Rights Act.
- Details of your credit agreement will be recorded with credit reference agencies.
PCP - Buy your dream motorcycle with lower monthly repayments
WHY PCP?
Personal Contract Purchase (PCP) can help you buy your motorcycle with lower monthly repayments than a Hire Purchase (HP) product as a large proportion of the amount you repay is deferred into an optional final repayment. You will pay more overall interest on a PCP agreement than a HP agreement for the same loan amount, term and APR* as your balance reduces more slowly due to the optional final repayment.
HOW IT WORKS
• You agree an initial deposit and term with us and decide how many miles you’ll travel each year.
• We will then work out the monthly repayment amount and the optional final repayment amount, which is based on the anticipated value of the motorcycle at the end of the agreement.
• At the end of your agreement, you can part exchange the motorcycle, return the motorcycle to the finance company (return conditions apply) or pay the optional final repayment and own the motorcycle.
• The finance company buys the motorcycle on your behalf and owns it for the duration of the finance agreement.
• After you’ve made all the repayments including the optional final repayment and any interest, you will become the owner of the motorcycle.
*Annual percentage rate of charge – the is the total cost expressed as an annual percent of the total amount of credit. The APR is there to help you compare different offers.
At the end of the agreement you will have three choices:
Part exchange. Subject to paying off your existing agreement in full, you can part exchange the motorcycle at the end of the term or any time during the agreement. New credit agreements are subject to status. The motorcycle could be worth less than the optional final repayment leaving you with a shortfall to pay before starting a new agreement.
Return. You have the option to return the motorcycle to the finance company at the end of the agreement. To avoid incurring charges, the motorcycle needs to be in good condition and within the permitted maximum mileage.
Click here to see the Black Horse ‘Good Condition Guide’.
Own. Own the motorcycle outright by paying the optional final repayment. A npurchase fee may be included in your agreement.
GAP insurance
A lot is written about GAP insurance. Essentially, if taken out, it’s used to bridge the difference between what you receive from your insurer in the event of a total loss on your bike, and what the bike’s replacement value actually is (or what’s outstanding on the finance agreement).
Although we think it’s desirable, a GAP policy is not needed if you are comfortable that you can afford to pay that difference in the event of a loss, or if your insurer pays out the invoice price.
You should consider GAP insurance, available through other providers, if you are unsure that you could afford the difference between what is owed on the agreement and any payout you may receive from your insurers – based on it’s value at the time. If you have no finance outstanding, then GAP is still useful, it’s insuring the difference between what will be paid out by your insurer, typically a trade value, and a replacement bike.
Return to Invoice – RTI
In the event of a total loss, your insurer will likely pay out a value based on a replacement bike of similar age and mileage. If you have taken a GAP policy with RTI, the policy pays the difference between that amount and the original purchase invoice – meaning you should be able to get back on a brand new bike in the event of a loss.
So, for example, if you bought your bike outright and paid £16,500 for their it, and their motor insurance payout is £8,000, RTI can pay up to the difference of £8,500 to top it up to the original £16,500.
If you financed your vehicle and paid £16,500 and your motor insurance pay out is £11,000, and their outstanding finance payment was £14,000 Finance GAP insurance may payout up to £3,000.
Combined Guaranteed Asset Protection will generally payout the greater of the Finance GAP or RTI amount. Check the terms of your insurance, and the terms offered by any GAP supplier. It’s a product well worth considering – although we don’t offer it ourselves.
FINANCE AND INSURANCE REGULATION
Newcastle Motorcycles are licenced by the FCA (registration number 660607) as a non-independent credit broker.
Newcastle Motorcycles has access to a limited number of lenders as a non-independent credit broker. Finance available subject to credit acceptance to UK residents aged 18 or over. Guarantees and indemnities may be required. Terms and conditions apply. Offer may be varied, withdrawn or extended at any time.
All figures are correct at time of publication but may be subject to change.
What does this mean? Essentially, we’re non-independent because we only work with a limited number of finance providers and cannot search nor advise on the whole market for your best option to fit your circumstances.
What’s a credit broker? We make introductions on your behalf to a limited number of lenders, but we are not the lender itself. Meaning for example, when you take out finance on a new Honda motorcycle we may introduce you to Honda Finance Europe (the lender) and your finance agreement is between you and them. We are not an independent financial advisor. We may advise you on the products, subject to your personal circumstances, though you are not obliged to take our advice or recommendation.
What about fees and commission? We don’t charge you a fee for an introduction to a lender, however the lender typically may pay us commission for a successful introduction. We do not charge you a fee for our services. Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The lenders we work with could pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.”
How am I scored? Different lenders have different methods of scoring you for your suitability of your finance application. We are not privy to the score, nor how they arrive at it. We only get notification of an acceptance, referral or decline. If you want to speak to any of the finance providers, their details are below.
If you want to make a complaint Please telephone or write to the following address in the first instance. We’ll endeavour to resolve any complaint quickly and painlessly. If you want to write to the finance houses directly, please see the details below
Newcastle Motorcycles Ltd, Dealer Principal, 195-199 Scotswood Road, Newcastle. NE4 7DD Tel: 0191 282 2868
For Honda Finance (Europe)
Honda Finance (Europe), Cain Road, Bracknell. RG12 1HL – or call 0345 128 8908
For Black Horse Motorcycle Finance
Black Horse Finance, St William House, Cardiff, CF10 5BH. If you have a question about your account or cannot locate your agreement number to log into your on line account, please call our Customer Services Department on 0344 824 8888
http://www.blackhorse.co.uk/bike/Contacts.html
MotoNovo Finance
One Central Square, Cardiff. CF10 1FS. Telephone 0333 200 0030
https://www.motonovofinance.com/customer-site/contact-us/
You can check this on the FCA Register by visiting www.fca.org.uk or by contacting the FCA direct on 0800 111 6768