Bikes bought on PCP?
Discussion
MCN had a big article on this last week and i had a good old look through the cost of buying bikes from small commuters to £35,000 beasts. Has anyone here got a bike being paid for this way and are you happy with how the plan is going?
To me it's an incredibly expensive way 'not' to buy a bike! The restrictions on mileage and required condition on hand back seem harsh and unless you're a once/twice a week rider the mileage allowances are pretty poor. It also seems that after the 3 years you are tied to, the bike may not even be worth what you still owe, that seems madness.
So are there any fans of the scheme here and if so i'd love to know what it is you like about it. I'd get a 2% interest bank loan all day long if i were buying without cash. I'm getting the new 1200 Speed triple soon, which i have saved up for but would definitely go to the bank rather than do a PCP.
To me it's an incredibly expensive way 'not' to buy a bike! The restrictions on mileage and required condition on hand back seem harsh and unless you're a once/twice a week rider the mileage allowances are pretty poor. It also seems that after the 3 years you are tied to, the bike may not even be worth what you still owe, that seems madness.
So are there any fans of the scheme here and if so i'd love to know what it is you like about it. I'd get a 2% interest bank loan all day long if i were buying without cash. I'm getting the new 1200 Speed triple soon, which i have saved up for but would definitely go to the bank rather than do a PCP.
Jazoli said:
PCP works for a lot of people, myself included, the MCN 'deals' always have ridiculous deposits, my latest one for example cost me £500 down and £130/month over 3 years. I can do 5k a year (which I very rarely do) and have a brand new bike under warranty for the duration of that time which will need a set of tyres and a couple of services.
If I'd bought the bike on HP it would have cost me £299 a month and after 3 years would have been worth 60% of its new price, so the figures are similar and I'll I'm doing is 'renting' the bike by paying the depreciation, £130 a month is a lot easier to find than £299, and I don't care about 'owning' the bike as I can get another new one after 30 months or so.
If I was doing 15/20/30k a year and commuting on a bike I would buy one outright, but I'm not and just ride for fun when the sun is shining, so I can have a nice new bike in the garage for less than a smoker or drinker spends a month on their habit.
Makes perfect sense to me
That's good that it suits you but unless i have done the maths wrong, PCP in every single example i have looked into costs us much more than a very low interest loan. Maybe you got an amazing deal somehow, but i worked out what a local lad is paying for his Suzuki 650 and it seemed an awful lot of actual outlay to rent a bike for 3 years, as you put it. If I'd bought the bike on HP it would have cost me £299 a month and after 3 years would have been worth 60% of its new price, so the figures are similar and I'll I'm doing is 'renting' the bike by paying the depreciation, £130 a month is a lot easier to find than £299, and I don't care about 'owning' the bike as I can get another new one after 30 months or so.
If I was doing 15/20/30k a year and commuting on a bike I would buy one outright, but I'm not and just ride for fun when the sun is shining, so I can have a nice new bike in the garage for less than a smoker or drinker spends a month on their habit.
Makes perfect sense to me
I was tempted by a new Ducati Streetfighter 1103 on PCP, then i did the maths. OMG!
I guess it must suit people if it's popular!
Ok fair enough, fans and critics of PCP abound, predictably.
I am surprised though, that ''nobody pays cash any more''. I have bought almost every vehicle, be them 2 wheels, 3 and 4 via cash, or rather these days bank transfer, visa card, whatever. I was always told to buy outright to get the best possible deal and while there may be discounts on selling price around if you take out finance, overall i firmly believe you are better off buying with a straight payment. I accept that for some people, that isn't possible and in my early bike and car buying days i borrowed from the bank at the best rates i could find.
But it's interesting getting the different takes on PCP, it really is not for me.
I am surprised though, that ''nobody pays cash any more''. I have bought almost every vehicle, be them 2 wheels, 3 and 4 via cash, or rather these days bank transfer, visa card, whatever. I was always told to buy outright to get the best possible deal and while there may be discounts on selling price around if you take out finance, overall i firmly believe you are better off buying with a straight payment. I accept that for some people, that isn't possible and in my early bike and car buying days i borrowed from the bank at the best rates i could find.
But it's interesting getting the different takes on PCP, it really is not for me.
TinyMonster said:
You missed a 'because' statement after that
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.
Re-reading the entire thread again a few people need to get a bit less fussy/miserable/precious about other peoples' choices. I also said that if PCP suits some people then go for it. It doesn't bother me a jot!
In fact, like someone else said the people who buy brand new on PCP create vehicles people like me can get for a song a few years later, so happy days.
I almost always buy used (and don't often insist on FSH either if the price is right). The exception being the Speed Triple 1200 on order because it floats my boat in a way i could not resist. I've managed to get a small but useful discount of 5% and will be paying with actual money, once more. I looked at PCP and it was instantly a NO, for me.
Calm down 1 or 2 of you, we're discussing how to buy a freaking bike, not gender fluidity in schools!!!
Drezza said:
Personally I never would, I don't like that it forces you to maintain dealer servicing which I prefer to do myself as it costs a fortune and if I drop it I can live with a cracked fairing whereas I'd have to fix it or take the hit on PCP. Although my Fazer is only worth a grand, I want a 765 Street Triple next, I'll just buy one a few years old for 6k, it's already done most of it's depreciation, can service it myself, seems a no brainer in my circumstances.
Absolutely right Drezza. A friend has the 765 and i loved riding it when he was abroad on business. I was tempted to get one, say 2 years old, but then Triumph went and updated their Speed Triple into an absolute raging monster and i was instantly canon fodder for a sale once i'd read the spec. Buying once most of the depreciation has been done is also a great idea. I recently picked up a one owner 2017 KTM 690 Duke for £3,600, without service history. Nearer £5,000 from a dealer with FSH at a guess.
Sometimes credit can be a royal nightmare also. A young lad near us has a GSXR 750 he's bought on finance. The price was £9,000 but he'll pay over £12,000 in total. (His insurance of £2,500 a year is pretty frightening as well).
£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!
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