A new Harley-Davidson for £51.95 a month?

With Harley|own™ finance it could be possible

February 2007

Motorcycle enthusiasts looking to purchase a new Harley-Davidson are being invited to explore the options offered by Harley-Davidson Finance, which could prove more affordable. Importantly, because of their brand values, demand and quality, Harley-Davidson motorcycles tend to depreciate at a slower rate than their competitor brands due to high consumer demand and overall build quality, so retain a good Guaranteed Future Value (GFV) which makes them an attractive product to purchase using a Personal Contract Purchase (PCP) also known as Harley|own™.

Alan Green, general manager at Harley-Davidson Finance encourages purchasers to consider all options, 'Harley-Davidsons' residual values at the end of 3 year are very competitive. Should buyers opt for this method of finance rather than personal funds, they could purchase a higher spec Harley-Davidson than they perhaps thought, change it more frequently while retaining their own funds in reserve for a rainy day. Indeed some customers have been able to purchase a Harley-Davidson using Harley|own™ finance and their monthly payments are as low as £51.95* (Typical APR 12.7%)'

*If a XL 883 (O7MY) Sportster costs £5195.00 and its GFV is £2700.00, then the customer puts down a 31% deposit (31% of £5195.00) and takes out a Harley|own™ agreement to fund an approximate balance ñ (£3595.00). This is spread over a 36 month term at £51.95 a month (Typical APR 12.7%).

The PCP has proved a popular funding option in the car market for many years and is ideally suited to the buyer who likes to change his or her bike on a regular basis, while keeping the monthly cost of its finance both fixed and affordable. Harley-Davidson customers who are keen to keep up with new models could find this purchase method an ideal funding choice, particularly with the high residual value retained by the product and the effect this has on Harley|own™.

While it is acknowledged that vehicles depreciate, they are likely to retain a value of some sort in the future, and some brands more so than others. It is this future value, known in the trade as the Guaranteed Future Value (GFV) that can define the cost-effectiveness of a Harley|own™ agreement, as it is the payment of this GFV amount that is 'deferred' until the end of the contract. In other words, the greater the value of a motorcycle's GFV, the smaller the value of the amount that needs to be borrowed to fund the purchase.

Customers arrange finance over a three year term and at the end of the term can return the motorcycle, subject to return conditions, and use any equity in it as the deposit for a newer model or buy it outright, by paying the optional final payment.

Customers considering realising their dream of owning a Harley-Davidson motorcycle should contact their nearest Harley-Davidson dealership and ask about Harley|own™.

*A typical example of the cost of purchasing a XL 883 Sportster (07MY) using finance

On the road price£5195.00
Deposit£1600.00
Advance£3595.00
38 Month Harley|own™
1st Payment, acceptance fee£135.00
36 Monthly payments @£51.95
Final payment£2790.00
Includes £80 credit facility fee and £10 option to purchase fee
Total amount payable£6395.20
Excess mileage charge6p per mile*
12.7% APR Typical
* Based on 6000 miles per year

Harley-Davidson Finance offers a range of financial services for Harley-Davidson dealerships and individuals looking to buy a Harley-Davidson using finance.