Buying a bike v pcp
Discussion
Rawwr said:
You know that PCP is a Personal Contract Purchase, right? It's not a lease, it's not a rental, it's not some sort of trap, it's just like a traditional Hire Purchase arrangement but deferring part of the purchase to the end of the term. Then again, you appear to think using Hire Purchase is 'buying outright' and you get the terms 'loaned' and 'borrowed' confused so maybe the fast-paced world of consumer finance isn't for you?
I suspect this post will not be popular.
You are basically paying for the depreciation. No trap - just get your mileage estimate right & bring it back at the end of the term in reasonable condition. I've had several cars over the years on PCP & can't fault it. Oh, & don't forget to shop around for GAP insurance....I suspect this post will not be popular.
Rawwr said:
Daniel T said:
i bought it outright so i have something to show at the end.
i put £1000 down, loaned the rest and paying £100 pm for 3 years.
but the bike is mine...for ever!
You know that PCP is a Personal Contract Purchase, right? It's not a lease, it's not a rental, it's not some sort of trap, it's just like a traditional Hire Purchase arrangement but deferring part of the purchase to the end of the term. Then again, you appear to think using Hire Purchase is 'buying outright' and you get the terms 'loaned' and 'borrowed' confused so maybe the fast-paced world of consumer finance isn't for you?i put £1000 down, loaned the rest and paying £100 pm for 3 years.
but the bike is mine...for ever!
I suspect this post will not be popular.
As they push pcp deals they seems to have the incentivise.
The fireblade is 0% and £2k in contributions on a pcp . No way coukd you get that off on a straight cash deal.
I feel if you change your bikes every 3 years its a great way to have a bike.
If you own the bike trying to trade they knock the price down etc etc . So easy to hand bike back and turn up to buy a new .sometimes if you are lucky there my be a bit extra in your bike
The fireblade is 0% and £2k in contributions on a pcp . No way coukd you get that off on a straight cash deal.
I feel if you change your bikes every 3 years its a great way to have a bike.
If you own the bike trying to trade they knock the price down etc etc . So easy to hand bike back and turn up to buy a new .sometimes if you are lucky there my be a bit extra in your bike
Rawwr said:
Daniel T said:
i bought it outright so i have something to show at the end.
i put £1000 down, loaned the rest and paying £100 pm for 3 years.
but the bike is mine...for ever!
You know that PCP is a Personal Contract Purchase, right? It's not a lease, it's not a rental, it's not some sort of trap, it's just like a traditional Hire Purchase arrangement but deferring part of the purchase to the end of the term. Then again, you appear to think using Hire Purchase is 'buying outright' and you get the terms 'loaned' and 'borrowed' confused so maybe the fast-paced world of consumer finance isn't for you?i put £1000 down, loaned the rest and paying £100 pm for 3 years.
but the bike is mine...for ever!
I suspect this post will not be popular.
What did he buy
Cash is good for anything second hand regardless of value, once you buy new your fooked. I love my bikes but there also assets to be sold should the s
t hit the fan if work dry's up. My last ktm 1290r was purchased new at a heavily discounted price of £11500 when they sold of the last of the mk1 bikes.
I kept it for 14 months and gave it to the shop to sell on for me, after there commission I finally received £9500 .
That's a loss of £2000 and the equivalent of £142 a month. Maybe pcp would of been a better option as opposed to outright purchase
?
The only thing buying cash does is let you change bikes more often and liquidate stuff if you need the money.
I fear my next purchase will lose a fortune because I fancy one of the 2020 bikes arriving after xmas
t hit the fan if work dry's up. My last ktm 1290r was purchased new at a heavily discounted price of £11500 when they sold of the last of the mk1 bikes.I kept it for 14 months and gave it to the shop to sell on for me, after there commission I finally received £9500 .
That's a loss of £2000 and the equivalent of £142 a month. Maybe pcp would of been a better option as opposed to outright purchase
? The only thing buying cash does is let you change bikes more often and liquidate stuff if you need the money.
I fear my next purchase will lose a fortune because I fancy one of the 2020 bikes arriving after xmas
mak said:
Cash is good for anything second hand regardless of value, once you buy new your fooked. I love my bikes but there also assets to be sold should the st hit the fan if work dry's up. My last ktm 1290r was purchased new at a heavily discounted price of £11500 when they sold of the last of the mk1 bikes.
I kept it for 14 months and gave it to the shop to sell on for me, after there commission I finally received £9500 .
That's a loss of £2000 and the equivalent of £142 a month. Maybe pcp would of been a better option as opposed to outright purchase ?
The only thing buying cash does is let you change bikes more often and liquidate stuff if you need the money.
I fear my next purchase will lose a fortune because I fancy one of the 2020 bikes arriving after xmas
The last bike i bought was less than 2 years old, he bought it outright but he needed to sell it, but relunctant to give it away , He paid £17684 for and i got it for £10k which was more than what the traders were offering him. He would have lost alot less if he had pcpd itt hit the fan if work dry's up. My last ktm 1290r was purchased new at a heavily discounted price of £11500 when they sold of the last of the mk1 bikes.I kept it for 14 months and gave it to the shop to sell on for me, after there commission I finally received £9500 .
That's a loss of £2000 and the equivalent of £142 a month. Maybe pcp would of been a better option as opposed to outright purchase
? The only thing buying cash does is let you change bikes more often and liquidate stuff if you need the money.
I fear my next purchase will lose a fortune because I fancy one of the 2020 bikes arriving after xmas
I don't mind admitting I have to use finance to buy things, I bought a brand new KTM 690 this year for £60 quid a month because the bike was discounted and the residual still pretty high based on the full price. I've recently bought a VW Caddy 7 month old for £200 quid a month with 1K in which was a part exchange the Caddy was 25K new 7 month ago (now 8k off) I could never have afforded either with a personal loan or 5 year HP, PCP has made things affordable for me but I always look out for items with big discounts and still retaining good residuals.
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