Do motorcycle dealers need FCA authorisation to offer finance?

The short answer

Yes. If your dealership arranges finance on bikes, or introduces buyers to a lender, you need to be authorised by the Financial Conduct Authority (FCA) — or operate as an "appointed representative" under someone who is. It doesn't matter that a finance company does the lending, and it doesn't matter whether you sell new superbikes, used commuters, or scooters: the introduction is the regulated act. Only dealers who never offer, arrange or refer finance at all fall outside the rules.

People still call this a "consumer credit licence." Strictly it's FCA authorisation these days, but the everyday term is fine. For the general picture see our step-by-step guide to getting authorised; this article covers what it means for motorcycle dealers, which closely mirrors the position for car dealers.

Why arranging bike finance is "credit broking"

PCP and hire purchase dominate bike retail just as they do cars. You don't lend the money — a specialist lender does — but helping the customer get that finance, or simply pointing them to the lender, is credit broking, a regulated activity in its own right. Commission or no commission, one lender or a panel, showroom or online: if the introduction comes from you, the authorisation requirement lands on you.

Which permission do motorcycle dealers need?

Authorisation comes in two tiers — limited and full permission — and for nearly every dealer the answer is limited. Your main business is selling motorcycles; finance is secondary, there to help customers buy them. That makes you a "supplier" in the FCA's eyes, eligible for the lighter tier: limited permission credit broking.

Part-exchanges with finance outstanding

Take part-exchanges? When a customer's px bike still has finance on it and you settle that finance as part of the deal, the settling can amount to debt adjusting — a second regulated activity. It sits comfortably within limited permission when it's scoped to settling finance on vehicles you take in part-exchange, but it has to be in the application. A permission that only covers broking doesn't cover the settlement step many deals rely on.

0% promotions and manufacturer-subsidised finance

Interest-free doesn't mean unregulated. The exemption for 0% credit only applies when the balance is repaid in 12 or fewer instalments within 12 months, with no fees of any kind — and typical bike finance runs far longer. Manufacturer-subsidised low-rate campaigns are regulated credit too. Our 0% guide covers the precise rule.

Appointed representative, or your own authorisation?

The alternative to direct authorisation is becoming an appointed representative of an authorised principal. It's legitimate and common, but it ties you to the principal's products and conditions, usually costs an ongoing fee, and leaves you dependent on their say-so. Direct limited permission gives you your own place on the FCA register, freedom to work with more than one lender, and no network fee — many dealers who start as ARs move to their own authorisation once finance becomes a meaningful part of the margin.

What it costs

There are two separate costs to budget for:

• The FCA's application fee — currently around £560 for a limited permission firm, paid to the FCA when the application is submitted. The FCA sets and occasionally changes its fees, so check the current figure on its website.
• Preparing the application — you can do it yourself, pay a compliance consultancy (often £2,000 or more), or use a fixed-price service. This is where the cost varies most.

There's also a small annual fee to the FCA once you're authorised. On timing, six months is the FCA's statutory limit for deciding a complete application — and longer if it's incomplete. In practice, complete limited permission applications are often decided more quickly, though that's typical rather than guaranteed. The single biggest factor in avoiding delay is submitting a complete, well-prepared application the first time.

Selling on finance without authorisation

Arranging or introducing regulated finance without authorisation — and without AR cover — is a criminal offence, can render agreements unenforceable, and invites FCA enforcement. The details are in our guide to offering finance without authorisation. If any part of your sales process today involves finance you're not covered for, that's the first thing to fix.