Bikes bought on PCP?
Discussion
TinyMonster said:
BroadsRS6 said:
Because every time i have done the maths it has cost me less money overall to buy the vehicle, basically. Simples!
I'm not apologising for getting the best deal for me and my hard earned money!
However. I did say earlier i accepted that not everyone is able to pay cash. The point being that if you can, you should, in my view and from the calculations i have made each time a new car or motorcycle has been bought, that's simple numbers.
I've removed the new/used stuff as we shouldn't be conflating that with the purchase method of anything.I'm not apologising for getting the best deal for me and my hard earned money!
However. I did say earlier i accepted that not everyone is able to pay cash. The point being that if you can, you should, in my view and from the calculations i have made each time a new car or motorcycle has been bought, that's simple numbers.
I guess I take the other road to you, in that I'm in a position where I can pay cash but it has never made sense to do so but then, I've always used 0% finance. The big hammer blow to the decision is usually opportunity cost, which is something a cash purchase can never compete with. Even if someone is purchasing with low-rate finance, the opportunity cost is not a factor to be dismissed. If you have to pay a couple of hundred quid over 3 years to have fluidity of a 5-figure sum, why wouldn't you?
As with your friend who's paying £3,000 to borrow £9,000, well, he's an idiot. By my rough maths and assuming a 3-year term, he's signed up to a deal with an APR of about 21.5%? Even over a 4-year term, it's 16%, which is totally mental. With that level of thinking, I'd probably go and check he's bought a GSX-R and not some magic beans.
Regardless, funding is not as simple as saying one method is better than another. Would cash have been better than the deal your friend got? Yes, absolutely, but that's an extreme example of where someone has been totally bummed on a deal that they were otherwise happy to sign up to. Would cash have been better than a 0% PCP with nil deposit on a workhorse? Absolutely not.
It is based on a number of assumptions that may change the "absolutely" to a probably or even a maybe.
1) That you can actually find such a deal on the bike you want. Are there really that many bikes being offered as 0% with no deposit? Great if there are but I've not seen them.
2) That the "cash up front" price is the same as the PCP price.(or is reduced by less than the interest that the cash could gain stuck in a savings account - between 3% and 6% if you go to the right places
).3) That you definitely intend to keep the bike for the duration of the deal and don't expect to get bored and want another, different bike. If you do then you also need to include the cost of main dealer servicing rather than using the local specialist.
As you said, "funding is not as simple as saying one method is better than another" even where it might, at first, appear obvious.
As I said before, if PCP works for you then that's brilliant. If you can get a good 0% deal then even better. If there was a 0% down and 0% interest on a bike that I actually wanted, I'd be signing the forms this afternoon.
PS While I understand why you removed S/H bikes from your post, if I was buying a workhorse that was offered a 0% down and 0% interest, I'd also be looking at 1 to 2 year olds of the same bike that had been returned before the end of the PCP deal. They are going to be a real bargain and will have a low mileage and full dealer service history. For a work horse, that would be spot on for me.
black-k1 said:
The only thing I would question in what you say is the statement of Absolutely not
It is based on a number of assumptions that may change the "absolutely" to a probably or even a maybe.
1) That you can actually find such a deal on the bike you want. Are there really that many bikes being offered as 0% with no deposit? Great if there are but I've not seen them.
2) That the "cash up front" price is the same as the PCP price.(or is reduced by less than the interest that the cash could gain stuck in a savings account - between 3% and 6% if you go to the right places ).
3) That you definitely intend to keep the bike for the duration of the deal and don't expect to get bored and want another, different bike. If you do then you also need to include the cost of main dealer servicing rather than using the local specialist.
As you said, "funding is not as simple as saying one method is better than another" even where it might, at first, appear obvious.
As I said before, if PCP works for you then that's brilliant. If you can get a good 0% deal then even better. If there was a 0% down and 0% interest on a bike that I actually wanted, I'd be signing the forms this afternoon.
PS While I understand why you removed S/H bikes from your post, if I was buying a workhorse that was offered a 0% down and 0% interest, I'd also be looking at 1 to 2 year olds of the same bike that had been returned before the end of the PCP deal. They are going to be a real bargain and will have a low mileage and full dealer service history. For a work horse, that would be spot on for me.
Yup, if we ignore all the caveats I made, your post holds water.It is based on a number of assumptions that may change the "absolutely" to a probably or even a maybe.
1) That you can actually find such a deal on the bike you want. Are there really that many bikes being offered as 0% with no deposit? Great if there are but I've not seen them.
2) That the "cash up front" price is the same as the PCP price.(or is reduced by less than the interest that the cash could gain stuck in a savings account - between 3% and 6% if you go to the right places
).3) That you definitely intend to keep the bike for the duration of the deal and don't expect to get bored and want another, different bike. If you do then you also need to include the cost of main dealer servicing rather than using the local specialist.
As you said, "funding is not as simple as saying one method is better than another" even where it might, at first, appear obvious.
As I said before, if PCP works for you then that's brilliant. If you can get a good 0% deal then even better. If there was a 0% down and 0% interest on a bike that I actually wanted, I'd be signing the forms this afternoon.
PS While I understand why you removed S/H bikes from your post, if I was buying a workhorse that was offered a 0% down and 0% interest, I'd also be looking at 1 to 2 year olds of the same bike that had been returned before the end of the PCP deal. They are going to be a real bargain and will have a low mileage and full dealer service history. For a work horse, that would be spot on for me.
There will never be another deal like that. It was amazing and the only reason I did it. The bike new was discounted to under 10k! After the 3 years I couldn’t even sell it for £6.5k private with 500 miles on the clock so I gave it back to Honda. No other PCP appeals to me, I prefer to buy outright.
Is there anything else like that going?
Iminquarantine said:
anonymous said:
[redacted]
WTF?!? That is a phenomenal deal. Is there anything else like that going?
£0 down and 0% finance isn't something i have seen either. Why would anyone selling anything offer you that, UNLESS they were screwing you in some other way, after all?
The lad with the GSXR750 in question is 22 so maybe the reason his APR was high-ish, at 21.5%. But then you see people taking out loans at over 1,000% and you really do have to wonder how bad things have to be to sign up to that kind of self harm! The last time i was getting Canadian currency at a Money Shop 2 women were getting loans at over 1,000% APR. Suddenly 21.5% seems almost fair!
The lad with the GSXR750 in question is 22 so maybe the reason his APR was high-ish, at 21.5%. But then you see people taking out loans at over 1,000% and you really do have to wonder how bad things have to be to sign up to that kind of self harm! The last time i was getting Canadian currency at a Money Shop 2 women were getting loans at over 1,000% APR. Suddenly 21.5% seems almost fair!
Stevemtb said:
That Africa Twin deal is crazy, but not as crazy as doing 500 miles over 3 years on it!...That's £2500 spent or a fiver a mile!..with a guaranteed residual you're supposed to use it!
I did 9,000 on mine on the same deal.My highlight was getting lost in a national park. I ended up taking the big girl up a mountain bike "downhill" trial and straying about 10 miles off piste unable to turn around. You should have seen the faces in the carpark with all these cyclists putting their gear on when the big Africa Twin stumbled up the hill.
Or the time I went over Braemar in the snow. Now that was f
king dangerous. I nearly died of bloody exposure.Never again.
Not on a bike I own anyway.
I never have bought PCP, always bought old bangers. I do see the appeal of always being on a brand new bike though, and if you don't notice the monthly payments it's fine.
I bought my current bike in July using the 0% bounce back business loan, I wouldn't be stupid enough to spend it on my business!
I bought my current bike in July using the 0% bounce back business loan, I wouldn't be stupid enough to spend it on my business!
When I got back into motorbikes a few years ago I did a PCP as it meant I wasn’t committing a lot of capital, I knew how much it would cost for 3 years, and I could easily walk away if I wasn’t enjoy bikes again after 3 years no problem. After three years I was loving the bike but it was relatively high mileage for the model and age so I traded it for a new bike that I knew I was going to keep a long time, so I paid for it outright. It will always be my Sunday afternoon bike for as long as my knees hold out. And Yes I do live in a village 
I am now looking at getting another bike for touring I will probably PCP, use it for a few years and then get something different. I could get a loan or dip into savings, but PCP works in this case.
It’s all about what works for the individual at the time. If you’re committing £250 a month on pcp when you already have credit cards maxing out, you’re an idiot. If you do the same within your income and even better with the money in reserve in bank, then rock on and do what works for you.
I am now looking at getting another bike for touring I will probably PCP, use it for a few years and then get something different. I could get a loan or dip into savings, but PCP works in this case.
It’s all about what works for the individual at the time. If you’re committing £250 a month on pcp when you already have credit cards maxing out, you’re an idiot. If you do the same within your income and even better with the money in reserve in bank, then rock on and do what works for you.
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