Buying a bike v pcp

Buying a bike v pcp

Author
Discussion

colin86

Original Poster:

158 posts

62 months

Friday 27th July 2018
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A went to triumph today to looking st s street triple they had in stock wasn’t great for how much they wanted. Anyway the salesman said to me how about a new one on pcp for 100 a month . A was really tempted . Does anyone do this or does most people still just buy a bike seems like decent deal but the way a see it is pay all that money to then just give it back at the end with nothing to show .

What’s everyone’s thoughts

Jazoli

7,351 posts

198 months

Friday 27th July 2018
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The 'pay a load of money and have nothing to show' is a bit silly really, you'll have use of a brand new bike with warranty for 3 years, for £100/month and there should be enough equity at the end of term to put a deposit on another new one, or just pay the balance and keep the bike.

For me there was little difference in the total I would have to pay if I decided to keep the bike at the end of the term, so instead of having to borrow £10k over 3 years at £300/month and owning the bike outright I pay £100/month instead, I might have 'nothing to show' at the end of it but I'm not in a worse position and have more cash to play with every month.

Edited by Jazoli on Friday 27th July 19:25

AlunJ

71 posts

111 months

Friday 27th July 2018
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Yeah. Currently pay £60 a month for my cbr650f. Fancying a street triple or mt09 sp for £100 a month, just hoping I've got enough equity for the deposit.

Birky_41

2,942 posts

132 months

Friday 27th July 2018
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Exactly what Jazoli said in my opinion

I bought my mv stuck down 4k financed the rest over 4 years hp. Within 18 months I was bored so bought the Aprilia

Used the equity to go into a pcp, set it to 8k p.a lowered my monthly 50 quid a month and after 3 years can use equity for a new one or buy it at the end

Given it ends September next year if I've not crashed it I'll buy it until the new model comes out. I'll always run pcp now just now options and I don't fancy riding a 4k bike cash that's 8+ years old, I like new bikes (call me a snob but I like gadgets) and I ain't got 16k spare to buy outright

NS400R

200 posts

107 months

Friday 27th July 2018
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You need to look at the full picture. In my case PCP at zero percent was a no brainer. Keep the money in the bank earning interest.

So look at the cost of borrowing if you need to. Often a bank loan is cheaper than dealer finance if you need to finance. Nothing better than 0% though.

podman

7,786 posts

188 months

Friday 27th July 2018
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Just watch out for the APR rate, not just figure PM, especially Triumphs.

I bought a new BMW a few weeks back, at 5.5%,
a new Triumph Speed Triple was 9.9%..haggle hard on both the PCP rate and the purchase price.

Thats my only advice, only you can work out which way you want to go about the finance
offering, if you can buy something outright,
thats always better of course.

Andybow

1,050 posts

66 months

Friday 27th July 2018
quotequote all
Birky_41 said:
Exactly what Jazoli said in my opinion

I bought my mv stuck down 4k financed the rest over 4 years hp. Within 18 months I was bored so bought the Aprilia

Used the equity to go into a pcp, set it to 8k p.a lowered my monthly 50 quid a month and after 3 years can use equity for a new one or buy it at the end

Given it ends September next year if I've not crashed it I'll buy it until the new model comes out. I'll always run pcp now just now options and I don't fancy riding a 4k bike cash that's 8+ years old, I like new bikes (call me a snob but I like gadgets) and I ain't got 16k spare to buy outright
With you both on this! I used to buy outright but find it better doing it this way, not bothered that I don’t (own) the bike I still treat it well and adorn it with expensive Crap

colin86

Original Poster:

158 posts

62 months

Friday 27th July 2018
quotequote all
Prob no right or wrong answer here . A was thinking but a 2013-2014 street triple r for 5k or pcp a brand new one with deposit for roughly the same money . It’s my first bike so hard choice

yonex

15,726 posts

116 months

Friday 27th July 2018
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Just consider your overall spend. I almost 'bought' a new S1000RR but the risk (for me) with the new one coming out was too great. It very much depends on future values. I am not against PCP but you need to do the maths and work out your depreciation. Be very careful what the dealer is selling, they will always paint a pretty picture biggrin

Se7enheaven

961 posts

112 months

Friday 27th July 2018
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Love all the man maths here laugh

dern

14,055 posts

227 months

Friday 27th July 2018
quotequote all
Very happy that people buy bikes on PCP. Puts loads of bikes on the second hand market with owners that have been incentivised to service them and look after them.

knitware

1,017 posts

141 months

Friday 27th July 2018
quotequote all
yonex said:
Just consider your overall spend. I almost 'bought' a new S1000RR but the risk (for me) with the new one coming out was too great. It very much depends on future values. I am not against PCP but you need to do the maths and work out your depreciation. Be very careful what the dealer is selling, they will always paint a pretty picture biggrin
June 2018 I bought a BMW S1000RR because the dealer gave me £2k off plus good apr on a PCP with the idea that if I handed it back in 11 months when the new S1000RR I'd have some equity, if I had no equity I wouldn't care, I'm having a blast,track day number 5 next Thursday.


bogie

14,210 posts

220 months

Friday 27th July 2018
quotequote all
Depreciation is the biggest cost of buying a new vehicle. So buying a used one saves you that cost. PCP makes it more "affordable" (compared with a loan) to get a new vehicle by deferring much of the value, so you just pay enough to cover the interest, and accumulate a bit of equity (a bit of a safety for you and the finance company).

It really is up to you and your circumstances, there is no right and wrong, but no matter how the deal on a new vehicle is wrapped up, there is always loads more depreciation to pay for being the first owner of a vehicle, you cant get away from that.

As this is your first bike, and likely you will want to change it when you get used to it, maybe get the "dream" bike or just try a different one, I would be sensible and buy a few year old one, save the depreciation this time around.

Later on when you know what bike you really want to keep for quite a few years, then treat yourself to a new one.

Of course if you are quite well off and losing half a vehicles value in depreciation every few years is small change, then just get on with enjoying buying new smile

Rubin215

3,413 posts

104 months

Saturday 28th July 2018
quotequote all
I'm very happy to buy a bike on your behalf and let you pay me a set amount every month to use it on the understanding that you will tax, insure and service it regularly, keep it in good condition, not exceed a certain mileage and then hand it back to me in a few years time to sell on with the understanding that we will do exactly the same all over again and again and again.

PCP? Mugs game...

Jazoli

7,351 posts

198 months

Saturday 28th July 2018
quotequote all
Rubin215 said:
I'm very happy to buy a bike on your behalf and let you pay me a set amount every month to use it on the understanding that you will tax, insure and service it regularly, keep it in good condition, not exceed a certain mileage and then hand it back to me in a few years time to sell on with the understanding that we will do exactly the same all over again and again and again.

PCP? Mugs game...
Yup there's always one.

Camelot1971

1,444 posts

114 months

Saturday 28th July 2018
quotequote all
Rubin215 said:
I'm very happy to buy a bike on your behalf and let you pay me a set amount every month to use it on the understanding that you will tax, insure and service it regularly, keep it in good condition, not exceed a certain mileage and then hand it back to me in a few years time to sell on with the understanding that we will do exactly the same all over again and again and again.

PCP? Mugs game...
It's not our fault you can't afford a new bike so don't take it out on us.

Hungrymc

4,195 posts

85 months

Saturday 28th July 2018
quotequote all
Noooooo...... come on chaps. We don’t need the lease / pcp / quickquid / can’t afford it / wealth whispers bks in the bike forums do we?

I haven’t pcp’d or leased since 2003. But I’ve no doubt some of my cars and bikes would have been cheaper on a pcp or lease in that time and others were cheaper to own (there is the question of if you really want to own it)

Isn’t the answer to do what’s you want with your eyes wide open and being aware of likley total cost? Nothing more to say?


Twincharged

1,834 posts

153 months

Saturday 28th July 2018
quotequote all
bogie said:
Depreciation is the biggest cost of buying a new vehicle. So buying a used one saves you that cost. PCP makes it more "affordable" (compared with a loan) to get a new vehicle by deferring much of the value, so you just pay enough to cover the interest, and accumulate a bit of equity (a bit of a safety for you and the finance company).

It really is up to you and your circumstances, there is no right and wrong, but no matter how the deal on a new vehicle is wrapped up, there is always loads more depreciation to pay for being the first owner of a vehicle, you cant get away from that.

As this is your first bike, and likely you will want to change it when you get used to it, maybe get the "dream" bike or just try a different one, I would be sensible and buy a few year old one, save the depreciation this time around.

Later on when you know what bike you really want to keep for quite a few years, then treat yourself to a new one.

Of course if you are quite well off and losing half a vehicles value in depreciation every few years is small change, then just get on with enjoying buying new smile
This.

If you have done the calculation and the situation is £5k to have a new bike for a few years, or £5k outlay to have a few year old bike (and something to sell at the end) then that's the decision you have to make.

Personally, for a first bike I'd suggest going for the few year old option, and get some miles under your belt. Then if you fancy something shiny and new after a few years, you can sell that and probably have the money for a deposit on the next one.

And always calculate total cost on these sorts of deals. Sometimes they're outrageously expensive, and other times they work out cheaper overall than the depreciation on buying new outright - usually when the model of bike is about to be replaced.

btdk5

1,595 posts

138 months

Saturday 28th July 2018
quotequote all
I would question getting a brand new first bike and being locked into some sort of finance deal for 2-3 years.

Everyone’s obviously different but I changed bikes about every 8-9 months for the first 3 or so years after passing.

I just bought a 2015 street triple r for 5k. Arrow exhaust, abs etc, I don’t see what a new one would bring you over that. (Not including the rs model).

That’s 90 quid a month if you need to get a traditional bank loan and you can get rid of it whenever you want.

Mr2Mike

20,143 posts

203 months

Saturday 28th July 2018
quotequote all
Camelot1971 said:
Rubin215 said:
I'm very happy to buy a bike on your behalf and let you pay me a set amount every month to use it on the understanding that you will tax, insure and service it regularly, keep it in good condition, not exceed a certain mileage and then hand it back to me in a few years time to sell on with the understanding that we will do exactly the same all over again and again and again.

PCP? Mugs game...
It's not our fault you can't afford a new bike so don't take it out on us.
That makes no sense at all directed at someone that (quite sensibly) avoids hiring new cars/bikes via finance.

swerni said:
I thought this corner of PH was free of bellends.

I feel such a mug letting the dealer pay the £2500 deposit for my Africa Twin and then all the payments being interest free.
Sounds like a very special dealer who is practically paying you to take the bike and won't be making anything on the deal at all.