Finance a good idea?

[Conker92]

Is financing a bike a good idea?
My current Honda cg125 has broken down for the last time and I don't want to just get another old bike for it too possibly break down again and again.
I have found a Honda dealer in Wigan with what looks like a fantastic deal.
Brand new Honda cb650f 2016 unregistered
£1 deposit, £99 a month for 36 months with a final optional payment of £3500. Within this deal is:
- 2 years full warranty
- 1 year road tax
- breakdown cover and 0% Apr.
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C Burton

[arry]

Three and a half grand is a hefty price for reliability but I can understand why it appeals.

But how many repairs does that buy?

[Beehive Bedlam]

A brand new bike will be just as likely to break down if you don't keep it well oiled and maintained.

What is wrong with the CG?

[andys675]

ask yourself why

they're a nice looking bike IMO, but the power output for a 650 is poor, and they obviously can't sell them as 0% costs somebody somewhere, would be interesting to find out who is paying the subsidy for the finance, Honda uk or the dealer and if it is Honda then haggle a better price
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Some people feel the rain, others just get wet.

[Azoth]

You're considering paying £3564 for something that will be 3 years old and worth just over half that, if you're lucky, by the time the instalments have all been paid?

The minute you ride it out of the showroom, it will be on a logarithmic depreciation curve. On top of that, you have to consider the obligatory dealer service costs. A warranty might not apply unless dealer servicing has been done at the right intervals. Dealer servicing can be expensive, and so you won't necessarily have the 'peace of mind' of worry-free reliable biking. If, for example, the first dealer service costs £200, that might be all it costs to make a newish but used very low mileage bike perfect. It's a fixed cost, and the money might have been better spent putting a bike you can own outright back on the road after having some niggles sorted by a mechanic.

It just sounds like a bad deal to me. It screams "I can't afford the bike". If you want to keep up with the Joneses next door, that's one thing. On the other hand, if you are Jones and you're struggling to keep your head up under the judgmental gaze of the Hoeburton-Findlewright-Carfaxs next door, maybe it's time to move out and live a lifestyle you can actually afford... If I came and bought that bike from you in 3 years' time, you will have run-in the engine and ironed out any issues for me, and I would have a reliable bike for much better value than you.

I say, no.. Get used to bikes being unreliable, make friends with the local mechanic, etc.
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Safety in numbers

[Conker92]

Think the pistons have gone in my cg, I just keep going from old bike to old bike for cheap prices. I just want get it repaired at the shop I bought it from then sell it for as much as I can.
I feel the warranty just does it for me as reliability, The dealer said it will cost me nothing or little cost.
My first service will be £100.
My situation is I can't afford to save up for a bike which would be another old bike I just don't have the knowledge to keep running. I just want something that can be done for me (lazy and incompetent of course)
It not the fact of keeping up appearances it's the fact I need something reliable to get me to work each day 50 miles return trip.
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C Burton

[arry]

If you had £3,000 in your back pocket now you could conceivably go out and buy another 3 bikes and if one breaks, swap your policy over to the other. Rinse and repeat if required.

At the end of the 3 years you'd have had the CB for, those 3 bikes would be, at a conservative guess, worth circa £2000 at the very lowest ebb.

You'd have to be particularly unfortunate to need to undertake serious repairs to all 3.

Reliability comes at a price - but is £3500 plus servicing a realistic cost you're willing to shoulder? If so, then crack on.

As for what the dealer has told you about what it'll cost you - well it is his job, after all.

[Conker92]

The thing im thinking about I can easily afford the £99 a month plus insurance and running costs. I can't afford to save up as I'm gonna keep getting set back by my current bike also public transport!
Isn't a 2016 model going to be worth nearly the same value it is now in 3 years?
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C Burton

[iooi]

[arry]

[Beehive Bedlam]

Your best option is buying a Haynes manual.

[ZX-7R]

I'd go for a bank loan myself,borrow as much as you can afford to pay back,though don't leave yourself too tight in case you need cash for unforseen problems,and buy the best used bike for that amount you can find.

At least you have collateral at the end of the loan if you have looked after it.
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Current Bike - 2000 ZX-7R

[Robby]

There a couple of ways of looking at this.

On the one hand, it's 7 grand for a commuter bike. If you really like the bike and would keep it for a long time, that's fine. It will be difficult for a lot of people to accept this, because for a lot of people a CB650 is not their dream bike. Either way, it's a lot.

On the other hand, it gives you fixed price, reliable motoring for the term of the deal. The fixed prices are quite high, but it will start every morning.

You won't be buying the bike at the end of the term, I can pretty much guarantee that. You're really paying £100/month to lease a bike. It isn't a bad price to lease a brand new bike for 3 years.

[Dave_80]

Would go for a loan rather than finance etc,that just traps you in a cycle where you are paying for something you don't own.part of the reason I went for my bike was they are known for being reliable if a bit boring,that and I don't look like a baklaf muppet on it(just a regular poor muppet).
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Honda CB750 F2X

[ThatDippyTwat]

[ScottT]

[155mph]

It's never a good idea to borrow money to pay for something you can't afford.

[Commuter_Tim]

[ZX-7R]

[pinkyfloyd]

From personal experience buying a bike on finance is only good when they do their 0% finance deals. I bought my Xj6 brand new, I put a £2000 deposit down and pay £85 a month over 4 years. I finish paying it off in May 2017. No final repayment, no interest, no hefty mileage/damage/wear and tear charge and no handing the thing back because I cannot afford the final lump sum.

Downside is I am tied to the bike unless I settle early. But that is no real biggy if you plan to keep the bike.

Either look for a full 0% deal you can afford with no PCP and go for it, or as suggested earlier, get a bank loan.
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illuminateTHEmind wrote: I am just more evolved than most of you guys... this allows me to pick of things quickly which would have normally taken the common man years to master
Hockeystorm65:.well there are childish arguments...there are very childish arguments.....there are really stupid childish arguments and now there are......Pinkfloyd arguments!
Teflon-Mike:I think I agree with just about all Pinky has said.

[ThatDippyTwat]

[Shaft]

[Dave70]

Just to second what Pinky says.

Look around for 0% finance deals that allow you to pay off the whole lot, so you own the bike at the end of deal, without paying a lump sum at the end.

I bought my last bike that way and am currently doing the same with my ER6f. The only real downside (imo) is having to have it serviced by a Kawasaki dealer, to maintain the warranty. However, I think that'd be the case even if I paid for it up front in cash.

Personally, I wouldn't touch a PCP offer.

How realistic is it that you'll have a spare 3 grand in your back pocket in 3 years time?
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There ain't no devil, there's just god when he's drunk.

2012: R125 killed by white van. 2016 R125 killed by 30,000 miles of redline. Current: 2016 Kawasaki ER6f.

[Kentol750]

50 miles a day....5 days a week, plus any other work it does, puts you around 13-14k per year. Good luck getting a pcp deal that gives you 40k mileage over 3 years.
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Some bikes.

[Brendan110_0]

0% PCP is a great deal. Save the final payment at the same time as paying £99/month if you can (£97/month for final payment over 3 years).
If you decide to keep it then make the £3500 payment, if not then you have £3500 to spend/deposit on next bike
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sreeB fo gniK