To PCP or not to PCP that is the question.

[Ribenapigeon]

My bike (XJ6 Naked ABS) was bought new in june 2013 on a personal loan over four years. Its coming up to its MOT point and it will be paid off fully in June 2017. So I went to have a look in the dealers and im eyeing up either a Yammy MT-09 or the MT-09 Tracer. Sales dude did the calculations for a PCP deal on them both and they come in at about the same as my payments on the XJ6 the Tracer being about £15 per month more. Im not asking for someone to make the decision for me but I just think its good to check with the BCF Cynic massif rather than just go on what the dealer says as obviously theyre really into PCPs it seems.

Im quite attracted to the idea as on the surface it looks good. Low hassle affordable monthly payments etc. On the other hand I was originally thinking hang on to the bike till its paid of in June 2017 then either keep it and run it into the ground or flog privately and go and buy another bike probably an MT but on another personal loan.

Cheers.

[Ste]

It's still as much as a bad idea as it was last time you asked.

Do feel free to share details of the interest rates offered by the salesman.

[ScaredyCat]

Not. No. Never.

Ever.


Ever.
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Honda CBF125 ➝ NC700X
Honda CBF125 ↳ Speed Triple

[Matt B]

Personally I would only begin to consider it if it's 0% APR.

Is it 0% APR?
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stinkwheel: He had an animated .gif of a cat performing fellatio. It's not socially acceptable. It can have real life adverse effects on other people.

[notbike]

[Beehive Bedlam]

I wouldn't buy a new bike cash never mind a loan at least not while there is plenty of good used low mileage ones to be had.

Some mug somewhere must buy new bikes though so crack on bitch.

[notbike]

[Beehive Bedlam]

[Ste]

OP helps people with debt problems and wants to get PCP loan himself.

Why?

[iwaldo]

Nothing to do with your question but how much was the MT-09 working out at per month? Just curious as these dealer calculator sites never seem to be fully accurate

[Ribenapigeon]

Its all so swings and roundabouts. Trouble is working out the angle on the swings against the angle on the roundabout. If I do the whole hang on a year flog privately bit im still going to be wandering into a dealership with just a bit of money to stick up as a deposit against a loan to get either a new bike or nearly new one. Meantime ive got costs coming up like new tyres, brake pads the MOT etc non of which will be regained come june 2017. The only way I would ever get to save up the moolah for a decent low milage second hand bike would be to spend the next three years taking the bus so some kind of borrowing is going to have to be an option. In a perfect world I would have a bike owned properly and sling cash every month in a savings account for several years then dump old bike privately and just buy next bike outright. I suppose i could do that if i kept the XJ until 2020 but i cant see myself doing that.

[Hahadumball]

keep current bike...
put monthly money you would be paying for the gay tracer into a savings account
save for 3 years
sell bike
add bike funds to £5k saved
buy new bike outright.
save almost £2000 on loan interest

i cant see how youd run a near new xj6 into the ground unless youre abusing it and not looking after it, if thats the case you don't deserve a new bike you should take the bus.
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Fin: no matter how much I look at It I can't understand what was going through my head, all I remember is going about 80 and redlining it to stop it seizing.
360 Deg... Five 1/4 turns. :- Teflon-Mike 18 Jan 2015

[JAMSXR]

Make sure you are getting a good deal and if you have the disposable income, go for it.

Both of my last bikes have been out of the crate and financed. I was fortunate enough to be in a position where I actually had the cash but my money was better invested elsewhere so I took the finance option. If you can afford the higher monthly payments get a loan from the bank, as you're looking at 4% APR VS 8% with PCP, depending on the deal.
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Honda SFX50 > Aprilia SR125 > Aprilia RS125 > Honda RFV400 > K4 GSXR600 > KTM Duke > C1H 636 > K3 GSXR1000 > Aprilia RSV-R > Triumph Street Triple R > Ducati 899 Panigale > Aprilia Tuono 1100 > Triumph Daytona 675R > KTM SuperDuke 1290 2.0

[Copycat73]

the problem with buyin on tick is your always in negative untill the last payment.. so saving up for the next one is a lot more difficult...

and so the cycle repeats itself.. ie you buy on credit cos you have not got the coin to buy outright..
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Whatever I post I have no citation and no intention of providing one..
caveat emptor

[bamt]

[dydey90]

I went down the finance route with my ER6. It cost £2k less than a new one and it had 130 miles on the clock, it wasn't even run in. Somebody had bought it for their wife and she had barely touched it.

I'd be looking for something like this:
https://www.autotrader.co.uk/classified/advert/201510278188033

Nearly £1500 off the price of a new one.
____________________
This post is probably not serious and shouldn't be taken literally.
Past: CBR125,ER6f NINJA 650, ZZR600 Current: VFR750

[J4mes]

Would finance with a private loan I think.

Can sell it at any time if you can no longer make the payments and need to pay the loan back.
Can sell at any time without having to put in advert "on finance this will be paid off when bought yadda yadda"
More negotiating power on price with cash
Better % rates unless dealer is offering mega low rates.

[Ste]

Everything is just hypothetical until OP gives details of interest rates and whatever other payments are involved.

OP isn't going to do that because as a debt adviser (or whatever his title is) he knows that it's not a good deal.

In terms of it being trouble working out the angle on the wings against the angle of the roundabout, find out how much you a personal loan would cost you.

[Hahadumball]

[Pigeon]

A personal loan for a Tracer. £8k at 3.6% APR:
Mileage = Unlimited
Cash deposit of £285 + £8k loan
3 years = £235/month. £8735 total repaid (incl £285 cash).
4 years = £180/month. £8885 total repaid (incl £285 cash).

Over 4 years, the loan has cost £150 a year. You only needed cash upfront of £285 and had more freedom.


PCP:
Mileage = 6,000 miles pa
Deposit £1,400
Credit of £6,800
4 years = £170/month. £9500 total paid.

Over 4 years, the loan has cost £325 a year. But you needed £1,400 deposit and were limited to 6k miles pa.


Deposit £285
Credit £8000
3 years = £175/month
Final repayment £3,320. £9920 total paid.

Over 3 years, the loan has cost £545 a year. You only needed £285 at the front, but were limited to 6k miles pa and then needed £3320 at the end. Which may or may not be the value of the bike depending on all sorts of unknowns.


A 4 year PCP deal on 0% might be ok if you can limit yourself to 6k miles pa.

But a personal loan looks the better option.

As others have said, none of this factors in the cost of depreciation. But buying a new bike is partly a subjective thing. How much finance costs, is not so subjective

[Ste]

How can someone who helps people with debt problems be considering a 9.6% PCP deal?

[Hahadumball]

[dydey90]

A quick look on MSE suggests that the lowest rates for personal loans right now are 3.3% for the amount required, a new MT-09 Tracer being around £8000. I would imagine that most dealerships can beat this, I was paying a flat 3% on mine.

Another alternative is to bang it on a 0% credit card (Or a few, as they might not want to give a limit that high) and then just balance transfer to a new one whenever the introductory period ends, paying off whatever you can afford.

If you want it paid off by the time the first MOT is due, credit at 3.3% for three years costs just over £400.
____________________
This post is probably not serious and shouldn't be taken literally.
Past: CBR125,ER6f NINJA 650, ZZR600 Current: VFR750

[ScaredyCat]

[oscar777]

Look at it this way: A new bike will always be hit with the initial huge drop in depreciation. Anyway you swing it, you will be eating that cost there is no way around that.

The best thing to do is buy a buy at least 3 years old which is past the steep part of the depreciation curve. (and with cash obviously)

But thats purely financially speaking. If you cannot afford to buy it outright, a personal loan will give you a better percentage, most definitely. Think about this, during a PCP, youre paying to pay of the interest and depreciation. The bikes not yours. If you want new bikes every 2 years a lease would be better, though not sure if dealers offer straight lease options?
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Push bike with a 80cc jerry rigged 2 stroke---> CBR125R ---> GSXR600 ---> Ducati 1098SF