Buying a bike which has a PCP contract on it.

[HarryMac]

Hi folks,

Excuse my naïvety....

Been looking at a bike (private sale) and just done a vehicle check on it which shows there’s a PCP contract taken out in April 2018 for 37 months.

Never bought a vehicle which has finance on it (mainly because I’ve never bought a vehicle worth putting finance on 😁 before).

What’s the best way to proceed - the vehicle report gave me the contract no, company and a ‘phone number for them.

Thanks

[Ste]

So the seller didn't tell you?

Find a different bike to buy.

[HarryMac]

[weasley]

Ask the seller if they will be clearing the outstanding finance on it.
____________________
Yamaha XJ600 | Yamaha YZF600R Thundercat | KTM 990 SMT | BMW F900XR TE

[HarryMac]

[The Shaggy D.A.]

[Keithy]

The problem is, the seller is more than likely to want use the sale proceeds to clear the finance. However if they don’t clear the finance then title does not pass to you. You have to ‘give’ them the cash so they have funds to clear the finance.

Catch 22 really, unless they arrange financing to clear what’s outstanding first.

[to v or not to v]

if in doubt do nowt.
there are plenty of other bikes on the market so why take chances?

[Polarbear]

[Easy-X]

Personally I wouldn't touch a bike on finance unless it was to help out a mate who was up shit-creek.
____________________
Husqvarna Vitpilen 401, Yamaha XSR700, Honda Rebel, Yamaha DT175, Suzuki SV650 (loan) Fazer 600, Keeway Superlight 125, 50cc turd scooter

[Weisse Schlange]

It's illegal for him to sell the bike with outstanding PCP on it, more so for him not to mention it.

You could buy the bike if you like, but you won't be the owner and they will come looking for it in time. (pcp company)
____________________
Hing Oan

[xX-Alex-Xx]

Walk away unless the finance is cleared. I bought a car a few years ago from a local used car dealership near me, and the dealer even showed me a clean HPI check on it (pre-printed). Cut to a couple of years later, I went to trade the car in for something else at a different main dealership... turns out my car was on finance and hadn’t been cleared. The HPI I’d been shown was bogus.

Believe me when I say it was a BALLACHE to clear, especially as the guy I bought it off had gone out of business the year previous.

Stay away from anything that’s got a lien against it
____________________
DILLIGAF

[Robby]

If you were to go ahead, bear in mind how PCP works.

You take out PCP on (usually) new vehicle. You put down about 10% of the value as deposit (variable in both directions), so you are financing the remaining 90% of the value.

You agree to a payment plan, generally 3-4 years, where the payments only really cover the depreciation. At the end of those 3 years you can hand the vehicle back and do it again, or pay a balloon payment to own the vehicle.

This means you typically pay off about half the value of the vehicle during the PCP term, and the balloon payment is the other half. So if this bike was about £7k new, don't expect to only have ~6 months of payments totalling under £2k. The balloon payment will be about £3500, and also the 6 payments left will be in the region of £150 each.

It's a great way to get a new bike for low monthly payments. It's not a great thing to take on from someone else, or to get stuck in if you can't really afford it.

[Pete.]

Don't even think about handing over money coz all you'll be doing is giving him money not buying the bike because it's not his to sell. I nealry lost a car in this exact way when I was in my twenties, and that was bought from a large dealership. If you're determined to buy the bike then you need a settlement amount from the finance company which YOU pay off, then give him the balance, if there is any which there won't be.

Call him back and ask him what the PCP settlement amount is - I bet he hangs up on you. If he does and that was me I would be PISSED that the guy was willing to saddle me with a stolen car and no money, so my next call would be to the finance company and furnish them with a link to the sale.
____________________
a.k.a 'Geri'

132.9mph off and walked away. Gear is good, gear is good, gear is very very good

[DJP]