finance

[bigdom86]

looking at buying a new bike in the range of £6000-7000 with a £1k deposit down. have always financed cars etc using HP through a dealer but thought this time might go through a bank personal loan as the APR is much lower, has anyone done this or do people generally just go with the dealer finance deals?

[P.addy]

Weigh up which is best. If you can get a low interest bank/personal loan, then do that. Fuck any form of PCP deals, just buy it with the aim to keep it, pay off in bulk if you get cash monies.

I'm currently fighting a finance company who believe they own my bike... so I'm inclined to point to the personal/bank loan as the bike is 'yours' as such.

[angryjonny]

Last bike I bought I financed through the dealer because they weren't cheeky enough to expect me to pay any interest.

Most vehicles that I've had to finance, I've done with a personal loan. As Paddy says, the loan and the vehicle are not connected, that way.

[Ste]

If you can get a bank loan at a better rate than finance from dealers are offering then go for it.

When you come to selling he bike, if you've finance then that'll be problematic compared to if it's been bought with a bank loan.

And finally, fuck PCP finance.

[bigdom86]

with the bank loan how does it work, you apply for loan, get approved, then £6000 gets put into your account, you wave money infront of dealer and pay in full, then pay bank back at the agreed monthly rate?

[Ste]

Pretty much.

https://www.moneysupermarket.com/loans/personal-loans/

And you could buy privately instead of from a dealer.

[Baffler186]

Yes
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Current: 2009 SV650 S, 1990 Kawasaki GT550
Previous: 2009 CBF125, 1998 GSF600, 2004 FZ6 Fazer, 1978 CB400a Hondamatic

[Kentol750]

Mrs K just did this. £6k loan (many cheap reputable lenders out there!) Was over £1k less than finance package over 48 months.
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Some bikes.

[Tracer1234]

[bamt]

[sickpup]

Tesco are pushing a 0% purchase credit card which although unlikely to cover the whole amount could be used to reduce the overall repayments.

[Captain Caveman]

Bank loan everytime.
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Mazda Bongo 2.5 V6 = MPG 22 0-60 Fast for a camper van...
Impreza - somewhere between the two.....
R1 = MPG-who cares 0-100 Slightly faster......

[Rogerborg]

An unsecured loan to own the vehicle outright and do anything you like with it.

...versus...

Paying a deposit up front to buy yourself the privilege of renting a bike that will be owned by the finance company, paying to insure it for their benefit, keeping it pristine and unmodified, and limiting your mileage.

Hmm, tricky one...

If PCP (or HP) is the only way that you can afford to ride the bike that you really must have, go for it. #YOLO and all that.

However, it's a poor deal when you look beyond the headline monthly amount.
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Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike

[Polarbear]

I bought bikes on bank loans, finance and credit cards.

The credit card was 0% interest for 24 months and I payed it off before that. NOTE - If you don't, i will cost ypu an arm and a leg so beware.

Finance was a 0% deal. I don't know if anyone is doing them at the moment, but £99 down, and 4 years at )% was a no brainer.

Personal bank loans now are about 4%? That isn't a bad deal either and that gives you the flexibility to choose any bike within that price bracket without any deposit.

PCP, I'm in the no, never camp.
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Triumph Trophy Launch Edition

[AshWebster]

I don't get all the hate for PCP. Just like a payday loan, when used right its actually pretty useful. Granted when misunderstood and fucked about with you can end up in the shit, but if you're after a brand new bike every 2-3 years (no MoT needed, free servicing etc), then PCP could be an option.
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Honda cg125 J reg peice of shit ---> CB650F ---> 2016 CBR600RR
Ford KA ---> 93' MR2 ---> 94'MR2 ---> 98' Subaru WRX STI Ver 3 (track car)

[MarJay]

The trouble with PCP is not actually taking up and using it IMO...

It's further down the line. The back street dealers who thrive off of your two or three year old mint low mileage top of the line bike are slowly dying. They have to specialise in old classics or mid '90s exotica in order to keep a roof over their heads. I've heard a rumour that at least one of my favourite back street places is thinking of jacking in the bike sales part completely. The other one pretty much exclusively sells customer bikes on their behalf, or sells new chinese Lexmoto and Jailing 125s. It's PCP that has caused it all. You give your bike back or use it as deposit for the next one, and your franchised dealer gets to resell it and take the servicing and accessory costs that go along with it. Not to mention the kit and so on.

PCP will kill the independent bike industry as it is doing for the car industry IMO.
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British beauty: Triumph Street Triple R; Loony stroker: KR1S; Track fun: GSXR750 L1; Commuter Missile: GSX-S1000F; Cheap project: CBR900RR FireBlade
Remember kids, bikes aren't like lego. You can't easily take a part from one bike and then fit it to another.

[grr666]

[bacon]

[mcprocrastina...]

Well agree with everything so far
-Personal loan gives you freedom to buy and sell when or how you want
-PCP is very limited in use case (suited really to someone who changes bike every 2-3 years on a dime, and does not care about value/cost except in terms of monthly affordability - Trade/Purchase price is always veiwed in the PM offering)
-Agree with, cant rem who it was now if they have 0% or a subsidised deal, then yup, no brainer
-Dealer finance, also do Personal loans, sometimes that is secured on the bike, sometimes not - you might wonder what the difference is between personal vs standard HP (not including PCP), well that "Halfs and Thirds Rule"don't apply
-Halfs and Thirds Rule- a bloody good thing to understand....

So Halfs and Thirds was introduced by the Consumer Credit Act in the UK, it means the following:
1) If you have paid a Third off your vehicle (Including Interest), they can;t reposese the bike
2) If you have paid a Half of your vehicle, they cant do above and also, you can hand the bike back (Vehicle) back to the dealer, with no additional charges

The latter completely f***** up the market big time back in 2008 financial crisis - Trust me, I was there and in finance, HP/Dealer finance companies took a hammering, as massive losses accumulted on vehicles being handed back
Also something to understand is that - there is absolutely no impact on your credit rating, although one has to be mindful, that the specific finance company may view that they don't want to lend you, you do have legal rights here also, again consumer credit act.

So, if something really bad happened, loss of job, or some kind of other crap, and you needed to get out your bike half term, then you have the knowledge that you have options on HP (Need to make sure its standard HP).

I view that as something positive, I guess you just have to evaluate the risk - Personal loan every time for me.

Good luck!

[MahatmaAndhi]

It might be worth upping your budget slightly. I believe at either £7,000 or £7,500 (I can't remember which) the interest rate drops, depending on the length of time and your credit history.
Should be a case of moving a few sliders around on a comparison website though.
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2008 Aprilia Sportcity 250

[waffles]

I bought my most recent car and bike on finance but only because it was part of a 0% APR deal and I would be an idiot to turn it down, Ive just paid the car off early and will do the same for the bike after the first year. Previous car purchases were bank loans organised to repay over the shortest time possible. I wouldn't touch a PCP offer at all.

Preferably go for a deal that means you own the vehicle from the outset, best bet is a bank loan if you can get one. Juggle amounts and see what the best interest rate is and how much extra that would cost you over the duration of the loan vs what a dealer finance offer could do.
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Theory test - 19/8/09, CBT - 11/10/09, MOD 1 - 16/8/10, MOD 2 - 27/10/10
Past rides Yamaha XT125X, Triumph TT600, Honda XR250
Current rides Suzuki GSXR 600, Honda MSX125

[Tracer1234]

I was very very close indeed to a PCP, spent a lot of time researching and different opinions and in the end, especially when it comes to bikes, there was an overwhelming consensus that PCP should be an absolute last resort.

So PCP, its a no from me.
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Riding: Yamaha MT-09 Tracer Occasionally Riding: 08 Suzuki SV650, Potato: 2011 Yamaha YBR Custom.
Used to ride: 2015 Yamaha MT-09 Tracer (smidsy) 09 Triumph Street Triple (P/X'd) 08 Yamaha YBR (Sold)
CBT 04/14. A: Mod 1 & 2 13/04/15

[Alpineandy]

[Alpineandy]