Guide
How Do I Lease A Bike Using Contract Hire?
Personal Contract Hire is a type of leasing a motorcycle, not a way of financing a motorcycle purchase. It’s a great way to ride a bike making affordable monthly payments, but you won’t actually own the vehicle at any stage of the contract.
Words by: Auto Trader
Published on 27 February 2025 | 0 min read
One of the major advantages of acquiring a motorcycle on a Personal Contract Hire lease is that it’s often more cost-effective than PCP and HP. And, once the agreement ends, you can hand the bike back or sign up for another agreement. You get all the benefits of owning a motorcycle without having to worry about depreciation - you ride it, you love it, and then you've got the option to upgrade to a new one.
What is Personal Contract Hire (PCH)?
Personal Contract Hire involves paying a deposit, often a few months worth of rental costs in advance, and a monthly charge over a set period of months or years to lease the bike. You won’t own the bike but you return it once the lease period ends. You also don’t get any equity in the bike to use as a part-exchange against a future vehicle purchase, so it’s essentially a long-term bike hire.
However, servicing and maintenance costs can be included in the payments that you make. You might also be limited to how much you can use the bike with a mileage limit that is agreed upon in your contract. The upside to this is that a lower annual mileage limit could reduce the cost of the monthly payments, but going over could incur extra charges.
However, servicing and maintenance costs can be included in the payments that you make. You might also be limited to how much you can use the bike with a mileage limit that is agreed upon in your contract. The upside to this is that a lower annual mileage limit could reduce the cost of the monthly payments, but going over could incur extra charges.
Pros of PCH
- Lower monthly costs.
- No depreciation worries.
- Access to brand-new bikes every few years.
- Predictable monthly payments.
- Can include servicing and maintenance.
Cons Of PCH
- You’re stuck with the bike until the contract expires unless you pay an exit fee.
- The deposit can be fairly substantial.
- You won’t own the bike at the end of the lease.
- Mileage limitations can be hard to work around.
- Miss a monthly payment and the bike must be returned.
What If I Want To Finance A Bike Purchase?
If leasing doesn't sound right for you, then financing an outright purchase of a motorcycle may be preferable. If so, head to our article about how to apply for motorcycle finance to find out more.
