PCP Finance

[Fowlersrs]

Whilst I was in my local Triumph haunt the other day a conversation came up about how people finance buying there Triples, now the chap said a lot of people are using there old bikes as a deposit and then getting a new triple or whatever on PCP Finance,

Now he went through how it was different, lower monthly payments and an agreed value of the bike after X amount of years being the some of the positives.

Now there's also bound to be some negatives, like what happens I'd u bin the bike etc, could any of you who have this or have looked into shed some light on it, I'm wondering if it might be an option for me in the future..

[chris-red]

I believe fully comp insurance is a condition of PCP my friend bought a Merc with it.
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[MarJay]

And the balloon payment is usually so much that you have to buy another bike to refinance...
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[Fowlersrs]

[MarJay]

[robbieguy2003]

I've financed bikes but just on a normal payment plan. I'd never do a bike on a balloon payment, because frankly, there is too much 'opinion' about what represents standard/good condition, so basically in 2 or 3 years you'll get a reasonable shafting if you don't upgrade, and if you do upgrade you'll just prolong the shafting.

Normal finance is the way to go, and if you're worried about the value, then always go FC insurance and if you want Gap insurance, buy it separately rather than from a dealer, or get them to at least half price it.

I've done the Balloon payment option on a car once and got extremely lucky - it was new Fiesta MK7, i bought it in January 2009 - car showrooms were ghostlike then, so I got a really good deal - Ford overmark their list prices anyway, but I got this car with a hell of a discount and lots of options thrown in for free.

I kept the car for a year, the list price of the car went up every 3 months so I sold it and got ~£600 back when they bought it off me. Bear in mind I'd been paying ~£200 a month - so £2400 - £600 = £1800 - So driving that cost me ~£150 per month and I done VERY well out of that one.

They inspected the car with a fine toothcombe and I'd not like to have to go through that with a bike.
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Current Bikes: Honda CBR 600RR - '07, Suzuki GSX1250 FA ST '11
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[supZ]

[colicabcadam]

the way i look at it is you could have used that £9,000 to buy a 7k car and maintain it...... then sell it on for money, which could be used to fund a new car...... after doing this a few times, you'll find you never need to finance a car again

these HP schemes also have mileage limitation, if you go over your allowed amount they often charge around 20p per mile......

you also never drove a 36k car for 3 years, it depreciated lol
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[Rogerborg]

Eyes wide open: de facto, you're renting a bike for a fixed term, with an option to buy it, and an obligation to service it on schedule and have it fixed if it's dropped.

With respect, I don't agree that it locks you in to a marque. Quite the opposite, if the bike is within the agreed condition and mileage, you can just hand over the keys and walk to the dealer next door.

And if it turns out that the final balloon payment is less than the market value, you're quids in (although you've been paying for that with higher monthly amounts). Buy it, sell it (or trade it in anywhere), profit.

I'm far too cheap to pay £££ per month to ride someone else's bike, but PCP isn't an irrational choice. Just do your sums and accept that you might end up with nothing, or even a small liability, at the end of the contract.
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[fozzym]

I'm not a big fan of PCP finance, in my experience the dealers always try and tell you the vehicle will be worth more than the balloon payment at the end thus giving you a deposit for a new model and its rarely the case.

The one time a tried a PCP the car ended up being worth 3 grand less than the agreed end value hence it went back! In the end it turned out to be a very expensive rental deal.

I know that for some PCP is the only way on to a "New" bike or car because the payments are lower but usually interest rates are higher although some car manufacturers are offering 0% PCP at the mo because things are so bad.

Fact is that there is so much choice out there on regular 0% finance I personally wouldn't touch PCP with a barge pole. To be honest I don't get finance these days unless its interest free.

[Polarbear]

Si if you get a bike/car on one of there PCP deals, it isn't yours. Does that mean you can't modify it?
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[supZ]