Choose the right finance

If you’re also looking to part exchange your bike then knowing how much your machine is worth, by using Parker’s online Used Bike Guide, is key to getting the best deal.

But for those not to be able to part exchange or buy a motorcycle outright with cash, choosing the right finance option can be tricky and cost you in the long run if you’re not careful. Interest rates vary massively between Hire Purchase (HP), bank loans and credit cards, and the advice is to do your homework to get the best deal.
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The Office of Fair Trading (OFT) oversees the licensing for dealers who offer these finance packages. Kate Wilcox, spokesperson for the OFT said: “Our line would be that finance is a product just as much as the bike you’re going to buy is. As you would shop around for a new motorcycle, you should shop around for finance options.”

Most dealers are tied to a finance company, which is very simple as you can buy the bike and arrange finance at the same time. Wilcox adds: “Dealers will always prefer to sell a bike on finance as they receive a ‘kick back’ for arranging it but bikers should be extra aware of the special provisions of this option. You might be better off seeking finance from a bank.”

Credit cards are the cheapest and most expensive way to borrow. In theory, bikers could get a zero percent credit card, buy a bike in full, and then spend the next five years juggling cards to stay at 0% so you pay no interest.

But experts at the Financial Ombudsman Service warn: “Credit card companies could withdraw their 0% offers so you don’t want to be left in situation where you have the cost of a bike spread over several cards and then unable to pay when the interest kicks in.”