End of PCP - Coronavirus effect
Discussion
I think I may be a bit stuck but wondered if anyone else had managed to move on a bike over the last few days.
I have a Ducati Monster 821 on a PCP deal which ends in 5 weeks' time.
I like the bike but have been using it less and less over the past few months - it therefore seems sensible to change it for either something cheaper or to get on a new PCP deal at less cost. I had looked at deals on the likes of new Fireblades but cannot justify the cost at the moment.
Top of the list - if I go for new - is a KTM 790 Duke. The deals on the 2019 model are extremely cheap for a new bike - £1800 deposit and £49 a month for three years.
However, can I realistically change bike in the current climate? Two weeks ago I probably had £750-£1k of equity in the Ducati - today, I don't know if a dealer would even consider taking it in PX against a new bike. Also, will a new bike even get delivered given everything that is going on now?
I could just hand the Ducati back - but would be walking away from any equity that may be left.
Or I could pay off the finance and keep it - but it may only be worth a fraction of the settlement figure given the economic position we find ourselves in.
I will try and speak to a KTM dealer to get a feel for the position, but if anyone has got any suggestions as to the sensible thing to do, I would be grateful to hear.
I have a Ducati Monster 821 on a PCP deal which ends in 5 weeks' time.
I like the bike but have been using it less and less over the past few months - it therefore seems sensible to change it for either something cheaper or to get on a new PCP deal at less cost. I had looked at deals on the likes of new Fireblades but cannot justify the cost at the moment.
Top of the list - if I go for new - is a KTM 790 Duke. The deals on the 2019 model are extremely cheap for a new bike - £1800 deposit and £49 a month for three years.
However, can I realistically change bike in the current climate? Two weeks ago I probably had £750-£1k of equity in the Ducati - today, I don't know if a dealer would even consider taking it in PX against a new bike. Also, will a new bike even get delivered given everything that is going on now?
I could just hand the Ducati back - but would be walking away from any equity that may be left.
Or I could pay off the finance and keep it - but it may only be worth a fraction of the settlement figure given the economic position we find ourselves in.
I will try and speak to a KTM dealer to get a feel for the position, but if anyone has got any suggestions as to the sensible thing to do, I would be grateful to hear.
Plenty of new Tiger 900s (built in Thailand) have been turning up in the last week or two, Bahnstormer and Destination Triumph have been sending out emails and social media posts saying they are still open for business and making adjustments to minimise risks. I don't imagine that values are plummeting as so far this is a blip, and spring is just about here.
Maybe contact your relevant dealerships and ask? I'd imagine now would be a great time to do a deal.
Maybe contact your relevant dealerships and ask? I'd imagine now would be a great time to do a deal.
Edited by JulianHJ on Thursday 19th March 17:41
Your arguments are a bit confusing. You seem frustrated that you might not have any equity, but at the same time annoyed that by handing it back you lose your equity. It can only be one or the other.
You’re in the best position, you can’t lose out financially if you’re pragmatic about it and remove the emotion. If it’s worth more than the bubble, then you can chop it in, if it’s not worth more then hand it back. Remember that dealers won’t be selling any new bikes, just as a used bike may drop significantly in value so probably will a brand new / newer bike, so there will still be deals to be made, albeit probably over the phone.
I’ve just got rid of my car last week. The dealer has already dropped the price to below what he paid me for it, as he hasn’t had a single person enquire about any of his stock (it’s a small stock prestige car dealer). I’m tempted to wait another couple of months and buy it back when he’s in a fire sale.
You’re in the best position, you can’t lose out financially if you’re pragmatic about it and remove the emotion. If it’s worth more than the bubble, then you can chop it in, if it’s not worth more then hand it back. Remember that dealers won’t be selling any new bikes, just as a used bike may drop significantly in value so probably will a brand new / newer bike, so there will still be deals to be made, albeit probably over the phone.
I’ve just got rid of my car last week. The dealer has already dropped the price to below what he paid me for it, as he hasn’t had a single person enquire about any of his stock (it’s a small stock prestige car dealer). I’m tempted to wait another couple of months and buy it back when he’s in a fire sale.
One dealer was doing the 790 Duke for the same price on Black Friday last year. The dealer in Northampton was advertising them recently at £6599. With regard to delivery you mean someone physically dropping the bike off? I don't doubt they physically have them in stock.
With the end of the financial year and the Corona Virus lock down and uncertainty they may be able to do you a good deal.
With the end of the financial year and the Corona Virus lock down and uncertainty they may be able to do you a good deal.
Thanks for the replies.
Maybe I am worrying about nothing - I had seen the thread on the car buying forum saying that WBAC and similar are not buying anything at the moment so wondered if I would have the same issue with the bike.
I think I will need to speak to a couple of dealers to see what the options are - I don't want to be without a bike so suspect I will just pay off the finance if I cannot find a decent deal on something else. After three years on the Ducati I quite fancy something different, although the sensible part of me thinks that keeping a bike that I have owned from new and which I therefore know has been looked after is the logical choice.
Maybe I am worrying about nothing - I had seen the thread on the car buying forum saying that WBAC and similar are not buying anything at the moment so wondered if I would have the same issue with the bike.
I think I will need to speak to a couple of dealers to see what the options are - I don't want to be without a bike so suspect I will just pay off the finance if I cannot find a decent deal on something else. After three years on the Ducati I quite fancy something different, although the sensible part of me thinks that keeping a bike that I have owned from new and which I therefore know has been looked after is the logical choice.
tedblog said:
Plenty of buyers around as money too spare as no holidays this year?
Really? Holidays aren’t being refunded, they’re being deferred. The economy is knackered, people are crapping themselves about whether they’ll have a business / job in three months. I’d have thought buying a new toy would be bottom of the list. unident said:
Really? Holidays aren’t being refunded, they’re being deferred. The economy is knackered, people are crapping themselves about whether they’ll have a business / job in three months. I’d have thought buying a new toy would be bottom of the list.
That depends whether you'd already booked one (I always wait to last minute)I might be wrong but I suspect anyone who works in the Public sector won't be affected financially
People who are pissed off might lift their spirits with a new toy
In the last financial crisis I bought the most expensive car I'd ever bought (£12k) as I was intending to keep it and they were massively reduced - I didn't like it and sold it a year later for a £4k profit.
V8RX7 said:
That depends whether you'd already booked one (I always wait to last minute)
I might be wrong but I suspect anyone who works in the Public sector won't be affected financially
People who are pissed off might lift their spirits with a new toy
In the last financial crisis I bought the most expensive car I'd ever bought (£12k) as I was intending to keep it and they were massively reduced - I didn't like it and sold it a year later for a £4k profit.
These are individuals though, not a true market. You’re looking for someone who hasn’t booked a holiday, works in the public sector, fancies cheering themselves up, wants the bike that the OP is selling and is prepared to go and buy it, oh and doesn’t mind spending a load of cash on something they might not be able to use until next year. Of course, there’s also the assumption that there isn’t any other bike for sale for a better price than the OP’s too. Even you have said you bought one at a massive discount, which the OP can’t / won’t do. I might be wrong but I suspect anyone who works in the Public sector won't be affected financially
People who are pissed off might lift their spirits with a new toy
In the last financial crisis I bought the most expensive car I'd ever bought (£12k) as I was intending to keep it and they were massively reduced - I didn't like it and sold it a year later for a £4k profit.
I’m not saying they don’t exist, but when you look at the car market, it’s got big problems. If the buyers have disappeared then prices have to drop to shift the product. Simple economics of supply and demand.
carinaman said:
One dealer was doing the 790 Duke for the same price on Black Friday last year. The dealer in Northampton was advertising them recently at £6599. With regard to delivery you mean someone physically dropping the bike off? I don't doubt they physically have them in stock.
With the end of the financial year and the Corona Virus lock down and uncertainty they may be able to do you a good deal.
northamptonmoto were doing £6599 and 0% finance if you had a 25% deposit. Looks like this has recently changed though and the finance rate is now 2.9% with a 25% depositWith the end of the financial year and the Corona Virus lock down and uncertainty they may be able to do you a good deal.
unident said:
These are individuals though, not a true market. You’re looking for someone who hasn’t booked a holiday, works in the public sector, fancies cheering themselves up, wants the bike that the OP is selling and is prepared to go and buy it, oh and doesn’t mind spending a load of cash on something they might not be able to use until next year. Of course, there’s also the assumption that there isn’t any other bike for sale for a better price than the OP’s too. Even you have said you bought one at a massive discount, which the OP can’t / won’t do.
I’m not saying they don’t exist, but when you look at the car market, it’s got big problems. If the buyers have disappeared then prices have to drop to shift the product. Simple economics of supply and demand.
Yes - it's clearly not the most buoyant market - but my point was that there are still buyers out thereI’m not saying they don’t exist, but when you look at the car market, it’s got big problems. If the buyers have disappeared then prices have to drop to shift the product. Simple economics of supply and demand.
V8RX7 said:
unident said:
Really? Holidays aren’t being refunded, they’re being deferred. The economy is knackered, people are crapping themselves about whether they’ll have a business / job in three months. I’d have thought buying a new toy would be bottom of the list.
That depends whether you'd already booked one (I always wait to last minute)I might be wrong but I suspect anyone who works in the Public sector won't be affected financially
People who are pissed off might lift their spirits with a new toy
In the last financial crisis I bought the most expensive car I'd ever bought (£12k) as I was intending to keep it and they were massively reduced - I didn't like it and sold it a year later for a £4k profit.
The only people I can see being ok are pensioners, if they survive this of course. Ironic the very sector of society were trying to save will lord it over the folk who have lost their jobs so they can live.
As others have probably advised the balloon payment could be more than the bike is worth in a few months (if not already). You can just hand back at the end of PCP subject to the reasonable wear/tear charges stuff they (the finance co) try to stiff you with, should be none from description. And then start again whilst trying to prise a deal out of the dealers hands in the current crisis.
TNJ said:
It is a 2017 plate so not the latest model (ie no gear indicator etc) but is relatively lightly used having just clicked over 6000 miles today.
I think my best bet is to pay off the balloon and keep it - then to see what happens in a few months time
I’m going to repeat myself here, but it might get heard this time. I think my best bet is to pay off the balloon and keep it - then to see what happens in a few months time
Take the emotion out of it.
You will either win on a sale and lose on a purchase, or win on a purchase and lose on the sale. It’s extremely rare for anyone to get top dollar on a sale and then negotiate a mega deal on a purchase. The new and used markets work together either both rise or both fall.
I took the bike for its first MOT today - passed with no advisories.
I then went for a nice long ride - no commuting, just for pleasure and it made me realise what a great machine it is - I have now decided that I will buy it - at the end of the day, it is not a life changing amount of money - I lost more than the cost of this bike when I drove my last car off the dealer's forecourt
I therefore think I will just keep it, enjoy it and not worry about values
I then went for a nice long ride - no commuting, just for pleasure and it made me realise what a great machine it is - I have now decided that I will buy it - at the end of the day, it is not a life changing amount of money - I lost more than the cost of this bike when I drove my last car off the dealer's forecourt
I therefore think I will just keep it, enjoy it and not worry about values
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