Thoughts on PCP/HP Vs sticking with an old POS
Discussion
Hi all.
Had some nice bikes in my time, new & used, but all bought outright when times were simpler.
Fast forward a few years and I find myself with a mortgage, three kids and a girlfriend pestering me to get married, who understandably thinks dumping several £k from the wedding pot on a new machine is being selfish.
Bank loan not really an option as currently have £14k outstanding for house renovations.
I bought a knackered old SV650 as a stop gap while I thought of my options, and it seems it's on its last legs, which leads me to HP and PCP options for bikes.
I know in general many don't like it, but if it keeps me riding something decent then I'm up for it.
As regards HP it would have to be something cheap.
Guerrilla 450 - £4995
- £900 deposit
- 36 x £131
- 4k miles
- Total amount paid = £5620
On the PCP front two deals have me interested.
Yamaha MT07 Y-AMT - £8054
- 9% APR representative
- £900 deposit
- 36 x £138
- 4k miles
- £3719 final payment
- £1529 interest paid
BMW F900R - £9090
- 0% APR representative
- £900 deposit
- 35 x £90
- 5k miles
- £5040 final payment
Obviously BMW is arguably the best deal being 0%, but the Yamaha dealer is right on my doorstep (others are an hour away) but then again the Royal Enfield would have me owning it at the end (though this isn't overly important).
Another possibility is just digging behind the sofa for another grand and buy a used £2k bike, which just about gets you on to something respectable.
Final option is to keep the one I have, but at 70k miles, corroded and leaking a bit of oil, I'm not overly keen on this and makes me look like a punk at meets.
Any advice or other things involved with any of these processes that I've not considered?
Thanks for any opinions, always appreciate the feedback on here.
Had some nice bikes in my time, new & used, but all bought outright when times were simpler.
Fast forward a few years and I find myself with a mortgage, three kids and a girlfriend pestering me to get married, who understandably thinks dumping several £k from the wedding pot on a new machine is being selfish.
Bank loan not really an option as currently have £14k outstanding for house renovations.
I bought a knackered old SV650 as a stop gap while I thought of my options, and it seems it's on its last legs, which leads me to HP and PCP options for bikes.
I know in general many don't like it, but if it keeps me riding something decent then I'm up for it.
As regards HP it would have to be something cheap.
Guerrilla 450 - £4995
- £900 deposit
- 36 x £131
- 4k miles
- Total amount paid = £5620
On the PCP front two deals have me interested.
Yamaha MT07 Y-AMT - £8054
- 9% APR representative
- £900 deposit
- 36 x £138
- 4k miles
- £3719 final payment
- £1529 interest paid
BMW F900R - £9090
- 0% APR representative
- £900 deposit
- 35 x £90
- 5k miles
- £5040 final payment
Obviously BMW is arguably the best deal being 0%, but the Yamaha dealer is right on my doorstep (others are an hour away) but then again the Royal Enfield would have me owning it at the end (though this isn't overly important).
Another possibility is just digging behind the sofa for another grand and buy a used £2k bike, which just about gets you on to something respectable.
Final option is to keep the one I have, but at 70k miles, corroded and leaking a bit of oil, I'm not overly keen on this and makes me look like a punk at meets.
Any advice or other things involved with any of these processes that I've not considered?
Thanks for any opinions, always appreciate the feedback on here.
Edited by Pebbles167 on Friday 13th June 16:11
I'm not against finance as such, it can make a lot of sense
But if you don't have much money and you're not about to get more money, in fact it sounds like you're about to spend more money on a wedding etc
Then I'd suggest a small loan or finance on a cheaper bike would make more sense because paying 8K for what is a pretty average bike is ridiculous IMO
You can buy a decent bike for £3k so sell yours and borrow / finance 2k IMO
But if you don't have much money and you're not about to get more money, in fact it sounds like you're about to spend more money on a wedding etc
Then I'd suggest a small loan or finance on a cheaper bike would make more sense because paying 8K for what is a pretty average bike is ridiculous IMO
You can buy a decent bike for £3k so sell yours and borrow / finance 2k IMO
KTMsm said:
You can buy a decent bike for £3k so sell yours and borrow / finance 2k IMO
Agreed. Secondhand bikes especially from a private seller can be ridiculously good value.The new game is only for people with money to burn. They are buying convenience and shiny new feeling, for the first riding season. After than it’s just another used bike.
I'd suggest if you can't get a bank loan because of your house improvements then borrowing money is not a good idea. The banks limit what they lend for a reason. I appreciate that I am very risk averse so you may feel differently.
There's so many decent bikes in the £2k-£3k range now that rather than finance something newer I'd take that route. Obviously care is needed in this price range as a pair of tyres, C&S and service will be a significant proportion of the budget if needed straight away. The bikes you have listed aren't even necessarily a significant upgrade from an SV (generally, if yours is towards end of life then that particular example might be different). Will you be happy with an MT07 for three years? Will you have £5k to drop on the BMW in three years so that you're not back to square one? The beauty of buying something outright is that if you change circumstances it doesn't cost a fortune to exit....and having a cheaper bike it's less likely to be seen as a potential new kitchen/summer holiday etc. by less interested parties.
I'd be buying something that has a reputation for reliability e.g. Blackbird, Hornet, Fireblade, CBR600F, etc. probably a reason it's all Hondas at this price point.....
There's so many decent bikes in the £2k-£3k range now that rather than finance something newer I'd take that route. Obviously care is needed in this price range as a pair of tyres, C&S and service will be a significant proportion of the budget if needed straight away. The bikes you have listed aren't even necessarily a significant upgrade from an SV (generally, if yours is towards end of life then that particular example might be different). Will you be happy with an MT07 for three years? Will you have £5k to drop on the BMW in three years so that you're not back to square one? The beauty of buying something outright is that if you change circumstances it doesn't cost a fortune to exit....and having a cheaper bike it's less likely to be seen as a potential new kitchen/summer holiday etc. by less interested parties.
I'd be buying something that has a reputation for reliability e.g. Blackbird, Hornet, Fireblade, CBR600F, etc. probably a reason it's all Hondas at this price point.....
Thanks for the replies!
Yeah it makes more sense to buy something used for sure, just didn't know if the BMW deal was really a cracking opportunity, bit like when everyone bought a Africa Twin for peanuts.
I could get a bank loan up to about £25k, but I thought that hampers my credit rating which is currently very good. Suppose any finance would do that though.
As for my bikes, I've changed pretty much every year for the last 15 years, I hoped this might be a good time to try stick for a bit.
As for the SV, it's hanging in there! Just a bit messy. No signs of mechanical trouble.
Yeah it makes more sense to buy something used for sure, just didn't know if the BMW deal was really a cracking opportunity, bit like when everyone bought a Africa Twin for peanuts.
I could get a bank loan up to about £25k, but I thought that hampers my credit rating which is currently very good. Suppose any finance would do that though.
As for my bikes, I've changed pretty much every year for the last 15 years, I hoped this might be a good time to try stick for a bit.
As for the SV, it's hanging in there! Just a bit messy. No signs of mechanical trouble.
Up to 2018 I had only purchased 1 new road bike in 34 years of riding, spending on average a few thousand pounds on varous bikes, mainly GSXRs , latterly I had a Honda Firestorm.
In 2018 I was 50 and thought sod it,in a similar position to yourself now, ill have a look around and see if I can justify a new bike.
Taking the debate off paper so to speak and actually putting the time into riding my short list of bikes(which I suggest you do …) I was staggered to find out just how good new bikes really are…I could easy justify it, my Firestorm felt absoutley s
t in comparison but I didnt want to own a new bike , just to service it once a year and thrash it about.
I am happy chopping the bike in every few years for a new one, which ive now done since 2018.
My first PCP bike I chopped the storm in on and added £1000 to it…since then ive added the equity of the PX bike and 1-2k to each deal.
Lots of variables to each and every deal , finance rate only 1 of them but I shop around hard , my monthly payments have gone up around £25 from the 2018 S1000R to my current M1000R, ive no doubt BMW have made some nice margin but this isnt mortgage money and for the enjoyment ive had on the bikes, worth every penny.
Im happy to chop it in after 3 years and look forward to a new bike again, TBH my BMWs / many modern bikes are full of tech and I wouldnt want to own one out of warranty anyway…that said, if it had Yamaha on the tank, if feel more at ease with that.
Anyway, as I said, take the debate off paper, go and ride them in the real world and see if you can justify it then.
In 2018 I was 50 and thought sod it,in a similar position to yourself now, ill have a look around and see if I can justify a new bike.
Taking the debate off paper so to speak and actually putting the time into riding my short list of bikes(which I suggest you do …) I was staggered to find out just how good new bikes really are…I could easy justify it, my Firestorm felt absoutley s
t in comparison but I didnt want to own a new bike , just to service it once a year and thrash it about.I am happy chopping the bike in every few years for a new one, which ive now done since 2018.
My first PCP bike I chopped the storm in on and added £1000 to it…since then ive added the equity of the PX bike and 1-2k to each deal.
Lots of variables to each and every deal , finance rate only 1 of them but I shop around hard , my monthly payments have gone up around £25 from the 2018 S1000R to my current M1000R, ive no doubt BMW have made some nice margin but this isnt mortgage money and for the enjoyment ive had on the bikes, worth every penny.
Im happy to chop it in after 3 years and look forward to a new bike again, TBH my BMWs / many modern bikes are full of tech and I wouldnt want to own one out of warranty anyway…that said, if it had Yamaha on the tank, if feel more at ease with that.
Anyway, as I said, take the debate off paper, go and ride them in the real world and see if you can justify it then.
podman said:
I was staggered to find out just how good new bikes really are
On the other hand I went from a 2004 gsxr 750 to a 2017 765 Street triple rs and was utterly underwhelmed. To the extent I’m still not convinced it wasn’t severely broken. Enough though that I’ll never buy another triumph.podman, that looks excellent!
OP, just an observation the MT-07 and BMW didn't have a total figure. I guess that's because you'd just hand them back?
The new MT-07 has much appeal to me. I've not considered them because of the swing arm rust issues but that was the old one. I think fun wise from the review I've seen the new MT-07 would do it for me.
My take on what people think of your less than pristine and well used SV650 is why worry and live your life around what you think others may think?
Your missus, kids, finances and well being is far more important than worrying what other people may think about whatever motorcycle you ride. Is keeping up with the Joneses worth it?
I recently lost an elderly relative who was so preoccupied worrying what other people may think that it almost took over their entire life. Later the same day people from the local hospice first visited they were still going on about someone over the road. It's like their being was a vessel for a mental illness.
Bang for your buck it's not easy to beat an SV650.
It's a shame Suzuki still supply them new with fixings that corrode. They should treat the old stager with more respect and not cheap out on the fasteners.
SV650s are good enough for the sons of Billionaires:
https://www.youtube.com/watch?v=l5wXz3Mc97E
OP, just an observation the MT-07 and BMW didn't have a total figure. I guess that's because you'd just hand them back?
The new MT-07 has much appeal to me. I've not considered them because of the swing arm rust issues but that was the old one. I think fun wise from the review I've seen the new MT-07 would do it for me.
My take on what people think of your less than pristine and well used SV650 is why worry and live your life around what you think others may think?
Your missus, kids, finances and well being is far more important than worrying what other people may think about whatever motorcycle you ride. Is keeping up with the Joneses worth it?
I recently lost an elderly relative who was so preoccupied worrying what other people may think that it almost took over their entire life. Later the same day people from the local hospice first visited they were still going on about someone over the road. It's like their being was a vessel for a mental illness.
Bang for your buck it's not easy to beat an SV650.
It's a shame Suzuki still supply them new with fixings that corrode. They should treat the old stager with more respect and not cheap out on the fasteners.
SV650s are good enough for the sons of Billionaires:
https://www.youtube.com/watch?v=l5wXz3Mc97E
trickywoo said:
On the other hand I went from a 2004 gsxr 750 to a 2017 765 Street triple rs and was utterly underwhelmed. To the extent I m still not convinced it wasn t severely broken. Enough though that I ll never buy another triumph.
Ah, with you on that, the one and only ever (new) Triumph I bought was also a lot different to one I demo’d but I did eventually get my money back on that..
trickywoo said:
KTMsm said:
You can buy a decent bike for £3k so sell yours and borrow / finance 2k IMO
Agreed. Secondhand bikes especially from a private seller can be ridiculously good value.The new game is only for people with money to burn. They are buying convenience and shiny new feeling, for the first riding season. After than it s just another used bike.
If you borrow on a bank loan, or get a finance deal, they will probably have exactly the same affect on both your credit rating and your affordability for mortgages.
If money is tight buying a 15 year old bike in good nick means you can insure it as a classic.
My XJR 1300 was £2500, and costs about £150 a year to insure.
If money is tight buying a 15 year old bike in good nick means you can insure it as a classic.
My XJR 1300 was £2500, and costs about £150 a year to insure.
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