How to pay for a custom motorcycle: your options
Personal loans, hire purchase on an independent sale and credit card protection: how buyers fund a bike from an independent builder, and what to check first.
By Chris ·
A finished custom motorcycle is a big purchase. Most of the bikes independent UK builders sell cost somewhere between the price of a new mid-range bike and the price of a small car. Plenty of buyers pay from savings, but many spread the cost. Here's how the main options work, what suits a bike bought from an independent builder, and what to check before you borrow.
Why buying from a builder is different
When you buy from a big dealer, finance is usually offered at the counter. Most independent builders are small workshops, often one or two people, and they generally can't arrange finance for you themselves. That doesn't mean you can't spread the cost. It means you'll usually arrange it yourself, before you agree the sale.
Personal loan
A personal loan from a bank, building society or credit union is the most common way to fund a bike from an independent builder. The money is paid to you, so as far as the builder is concerned you're a cash buyer, and the bike is yours from day one.
You own the bike outright, so you're free to modify it, insure it how you like, or sell it later.
You can get a quote before you go to view bikes, so you know your budget.
Many lenders offer eligibility checkers that use a "soft search", which doesn't affect your credit score.
Credit unions are worth a look, especially if you already belong to one through work or where you live.
Hire purchase on a private or independent sale
With hire purchase (HP), you pay a deposit and monthly instalments, and the lender owns the bike until the final payment. Some specialist lenders offer HP on bikes bought from independent sellers, not just dealers. They usually check the bike and the paperwork, then pay the seller directly.
The loan is secured on the bike, which can mean a lower rate than an unsecured loan.
Until you've made the last payment, you'll usually need the lender's permission to make major changes to the bike or to sell it.
Under regulated HP agreements you normally have the right to hand the bike back once you've paid half of the total amount payable.
Check the lender is happy with a one-off: some only finance standard models they can value easily.
Paying part on a credit card
If the builder takes card payments, putting part of the price on a credit card, even just the deposit, can give you extra protection. Under Section 75 of the Consumer Credit Act, the card provider can be jointly responsible if something goes wrong with a purchase costing between £100 and £30,000. Pay the balance off quickly, as card interest is usually high.
Before you borrow
Get an insurance quote first. A custom bike may need an agreed-value policy, and the premium belongs in your monthly budget. Our guide to insuring a custom bike explains how agreed value works.
Budget for the extras: delivery, a fresh MOT if one's due, and any changes you'll want to make.
Compare the total amount repayable, not just the monthly payment, and check the APR.
Only borrow what you can comfortably repay. MoneyHelper, the free government-backed service, has impartial guides to loans and credit.
Paying the builder safely
However you fund it, pay by a traceable method into an account in the builder's business name, and get what's included in writing. For extra peace of mind, you and the builder can use an escrow service, which holds your payment until you've received the bike. Our page on how buying works goes through each step.
Finance and Saddle Row
We're lining up a specialist finance partner, so buyers can spread the cost of bikes on Saddle Row. Until then, tick the finance box when you enquire about a bike or join our list, and we'll let you know as soon as it's available.
This is general information, not financial advice. Saddle Row doesn't arrange, recommend or provide credit. Check the terms of any agreement carefully, and get independent advice if you're unsure.
