HONDA PCP FINANCE
Personal Contract Purchase is a finance product offered by Honda Financial Services that provides a flexible funding solution to get you on your new motorcycle and out on the road with monthly payments that are lower than some alternative finance products.
How it works
PCP is one of two finance products available to you from Honda Financial Services to help fund your Motorcycle.
PCP allows you to keep your monthly repayments lower by deferring a proportion of the credit to the end of the agreement, and also giving you the flexibility of 3 options at the end of the agreement.
So, how does this work?
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Firstly, choose the motorcycle you want, and agree how much deposit you would like to put down.
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Then, estimate how many miles you will ride each year, and then agree how long you would like your agreement to run, between two and four years.
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Then, estimate how many miles you will ride each year
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We will then use this information to calculate a Guaranteed Future Value [GFV] – this is what we predict the value of your motorcycle to be worth at the end of the agreement.
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The Guaranteed Future Value is deferred until the end of your agreement.
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Because this value is based on your estimated annual mileage, it is important to give an accurate estimate, as you may have to pay excess mileage charges if you exceed your total agreed mileage for the agreement.
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Your monthly payments are worked out on the difference between the GFV and the price of the motorcycle once your deposit has been taken off and interest added. This means you have lower, fixed monthly repayments than with Hire Purchase.
You decide
At the end of your agreement you have the flexibility of 3 options:
Retain - You can keep your motorcycle – pay the final payment and the option to purchase fee, and you will own the motorcycle outright
or
Return - You can hand your motorcycle back to us without paying the final payment – if you have exceeded your agreed mileage or the motorcycle is not in a good condition, then there may be additional charges to pay. Excess mileage charges will be explained before you sign the agreement, so you will know what these may be if you go over your estimated mileage.
And finally your third option is,
Renew - You can part exchange your motorcycle and subject to market value conditions, this should cover off the cost of the final payment. Then together with your Honda dealer, you can start looking for your next Honda.
Choose the right product
Personal Contract Purchase may not be right for you so please review our other finance products or speak to your Honda dealer, to make sure you choose the right product to suit your needs.
It is important that the product you choose should provide a monthly payment that is sustainable, whilst also meeting your needs and circumstances best. Your Honda dealer will be happy to assist you with this.
Product Features and Considerations
There are some aspects of Personal Contract Purchase (PCP) that you need to be aware of to help you make an informed choice to decide if PCP is right for you.
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As your PCP agreement includes a Guaranteed Future Value (GFV) you have the ability to return the motorcycle to us (subject to the terms of the agreement). This provides you with some protection from market depreciation.
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You have the right to withdraw from your PCP agreement within 14 days from the start of your agreement. You can also partially or fully settle your agreement at any time (subject to the terms of the agreement).
Personal Contract Purchase (PCP) may not be the right product for you for the following reasons:
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If you are a high annual mileage user then PCP is unlikely to be suitable for you as there is a maximum total contracted mileage limit.
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If you prefer to change your motorcycle after more than 4 years then PCP may not be right for you as the maximum PCP term is 4 years.
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Interest is payable on the amount you borrow including the Guaranteed Future Value (GFV). The Total Amount Payable (the overall cost) is likely to be higher than a Hire Purchase agreement with the same loan amount and term, as your balance will reduce slower due to the deferred GFV.
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If you do more miles than you estimated and/or there is damage to the motorcycle, there may be additional charges if you decide to return your car to us.
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You are not guaranteed to have any equity at the end of the agreement, if market conditions mean your motorcycle is worth less than the GFV. This may mean you will require an additional deposit if you choose to part exchange at the end of the agreement.
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You will own the motorcycle outright once all regular payments, GFV and any option to purchase fees are paid.
We are authorised and regulated by the Financial Conduct Authority, registration number 654936.
“We are a credit broker and not a lender. We can introduce you to a limited number of lenders and their finance products which may have different interest rates and charges. We are not an independent financial advisor. We will provide details of products available from the lenders we work with, but no advice or recommendation will be made. You must decide whether the finance product is right for you. 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 we receive from a lender does not have an effect on the amount you pay to that lender under your credit agreement.” We will disclose the amount of commission we receive before you sign the agreement.
Complaints procedure.
We take all complaints seriously.
Our process for dealing with complaints received by us will differ depending on what the complaint is about.
1. Products regulated by the Financial Conduct Authority (FCA)
We will treat as a FCA regulated product complaint relating to credit broking or insurance product (Regulated Complaint) any oral or written or email expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service, which alleges that the complainant has suffered (or may suffer) financial loss, material distress or material inconvenience.
2. Goods and non-financial services
All other complaints regarding goods or non-financial services supplied by us will be treated as a general complaint.
Process for all complaints
Many concerns can be dealt with straight away but sometimes it is necessary for us to look into the matters you have raised in more detail. Please address all complaints to our Managing Director in the first instance to our business address by post, or via the general enquiry form online.
The responsible department manager or director will contact you to attempt to resolve the concern.
If the concern has not been resolved within 14 days it will be automatically escalated back to the Managing Director. When a concern is believed to have been resolved by the responsible manager or director, they will submit the concern for closure via the Managing Director.
You may raise or discuss your concern with our Manging Director at any stage.
Process for general complaints
After the process above, if we are unable to resolve your complaint to your satisfaction, then we will provide details of certified Alternative Dispute Resolution providers that you may contact.
Process for Regulated Complaints
In addition to the process above, our management team will also review all regulated Complaints and we have a slightly more formal process as follows:
• Promptly following receipt of your complaint
Any regulated Complaint that has not been resolved straight away will be recorded by our management team and we will send you a letter to acknowledge your concerns.
If we believe that another firm or company is responsible for the matters to which your complaint relates and is therefore best placed to resolve it, we may forward your complaint to them to investigate. If we do so, we will write to you to let you know and will give you the name of the firm or company to which we are forwarding your complaint.
• Within eight weeks from receipt
Unless covered by the second paragraph below, we will aim to have completed our investigation and provide you with our final response in relation to your complaint within eight weeks of receipt of your complaint. If we cannot provide you with our response within eight weeks, we will write to you explaining why this is the case and indicate when a response will be sent to you. You will also be advised of your right to take the matter to the Financial Ombudsman Service should you be dissatisfied with the outcome of our investigation and our final response.
