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Finance
Royal Enfield Chelsea has a variety of finance packages, funded by CA Auto Finance, on offer to suit every budget. We’re always happy to discuss this with you and have a private space in the store where you can talk comfortably and get a no obligation quote.
Finance enables everyone to achieve the dream of owning a bike without the up front expenditure. It also offers the stability of fixed monthly payments and the freedom to end the contract whenever you wish.
For those that wish to change their bike more often, we have Personal Contract Purchase (PCP) finance available. If that’s not for you, and owning the bike at the end of your finance contract is more important, we have Hire Purchase (HP) available as well.
Personal Contract Purchase
Otherwise referred to as PCP is, in essence, a limited mileage contract that gives you some options at the end of your agreement. Once the agreement comes to an end you can do one of three things. Hand the bike back, purchase the bike or trade it in towards a new bike.
The way a PCP works is like this. You agree you’d like (X) motorcycle for £5000. You’d like to put down a £1000 deposit, have the bike for 3 years and do a maximum of 3000 miles a year. The finance company will work out the Guaranteed Future Value (GFV) of that bike. This is the price they expect the bike to be worth if it’s kept in good condition, fully serviced and kept within that mileage limit. So, let's say in 3 years they say the bike will be worth £2500.
The finance company will take this figure out of the equation and your monthly payments for the 3 years would be for the £1500 left (after GFV and deposit are removed) from the cost of the bike and the interest charged by the finance company.
At the end of your agreement, provided you’ve kept the bike well, you can buy the bike for the GFV price, trade it in for a new one or just hand it back.
Now what happens quite often is that at the end of the contract, the mileage isn’t as high as expected, it’s been really well looked after and the trade in price of the bike may be more than the GFV. For the sake of this example, let's say the trade in value is actually £3000. That means if you wanted to start a new contract on a new bike, you’d already have a £500 equity to put towards a deposit!
Another advantage of a PCP is that there is no penalty for ending the contract early. So if your dream bike comes out at, lets say, year 2 of your contract, we can always work towards settling your existing finance and getting you on that new bike!
The biggest advantage of a PCP though is, as the finance is based on the bike minus the GFV, it keeps the monthly payments lower than an equivalent length Hire Purchase contract.
Hire Purchase
Otherwise known as a HP is a much simpler finance deal to wrap your head around. Let's say you want to get bike X that costs £5000 and you’d like to pay for it over 3 years and put down a £1000 deposit.
The finance company will take the remaining value of the bike (in this instance £4000), add the interest and divide it by the 36 monthly payments. At the end of your contract, there’s no balloon payment or anything like that, just very simply once you’ve made your final payment, you own the bike. It really is that simple!
This is the sort of contract for those who really want to own the bike at the end of the contract but want to spread the cost of it out.
One great advantage of a HP is that there are no penalties for early repayment, and in fact it can save you money! Let's say you have a really good birthday and decide to put an extra £500 towards your bike. That will reduce the length of the contract or reduce your monthly payments (entirely up to you) but in doing so you are reducing the capital that you are borrowing and therefore paying a bit less interest.
Whether its a PCP or a HP, Royal Enfield Chelsea will always work with you to get you the right finance deal for you and your needs!
Royal Enfield Chelsea has a variety of finance packages, funded by CA Auto Finance, on offer to suit every budget. We’re always happy to discuss this with you and have a private space in the store where you can talk comfortably and get a no obligation quote.
Finance enables everyone to achieve the dream of owning a bike without the up front expenditure. It also offers the stability of fixed monthly payments and the freedom to end the contract whenever you wish.
For those that wish to change their bike more often, we have Personal Contract Purchase (PCP) finance available. If that’s not for you, and owning the bike at the end of your finance contract is more important, we have Hire Purchase (HP) available as well.
Personal Contract Purchase
Otherwise referred to as PCP is, in essence, a limited mileage contract that gives you some options at the end of your agreement. Once the agreement comes to an end you can do one of three things. Hand the bike back, purchase the bike or trade it in towards a new bike.
The way a PCP works is like this. You agree you’d like (X) motorcycle for £5000. You’d like to put down a £1000 deposit, have the bike for 3 years and do a maximum of 3000 miles a year. The finance company will work out the Guaranteed Future Value (GFV) of that bike. This is the price they expect the bike to be worth if it’s kept in good condition, fully serviced and kept within that mileage limit. So, let's say in 3 years they say the bike will be worth £2500.
The finance company will take this figure out of the equation and your monthly payments for the 3 years would be for the £1500 left (after GFV and deposit are removed) from the cost of the bike and the interest charged by the finance company.
At the end of your agreement, provided you’ve kept the bike well, you can buy the bike for the GFV price, trade it in for a new one or just hand it back.
Now what happens quite often is that at the end of the contract, the mileage isn’t as high as expected, it’s been really well looked after and the trade in price of the bike may be more than the GFV. For the sake of this example, let's say the trade in value is actually £3000. That means if you wanted to start a new contract on a new bike, you’d already have a £500 equity to put towards a deposit!
Another advantage of a PCP is that there is no penalty for ending the contract early. So if your dream bike comes out at, lets say, year 2 of your contract, we can always work towards settling your existing finance and getting you on that new bike!
The biggest advantage of a PCP though is, as the finance is based on the bike minus the GFV, it keeps the monthly payments lower than an equivalent length Hire Purchase contract.
Hire Purchase
Otherwise known as a HP is a much simpler finance deal to wrap your head around. Let's say you want to get bike X that costs £5000 and you’d like to pay for it over 3 years and put down a £1000 deposit.
The finance company will take the remaining value of the bike (in this instance £4000), add the interest and divide it by the 36 monthly payments. At the end of your contract, there’s no balloon payment or anything like that, just very simply once you’ve made your final payment, you own the bike. It really is that simple!
This is the sort of contract for those who really want to own the bike at the end of the contract but want to spread the cost of it out.
One great advantage of a HP is that there are no penalties for early repayment, and in fact it can save you money! Let's say you have a really good birthday and decide to put an extra £500 towards your bike. That will reduce the length of the contract or reduce your monthly payments (entirely up to you) but in doing so you are reducing the capital that you are borrowing and therefore paying a bit less interest.
Whether its a PCP or a HP, Royal Enfield Chelsea will always work with you to get you the right finance deal for you and your needs!