If I have understood your posts correctly you are considering using a pcp to obtain a race bike for next season. You will then return it at the end of the contract with unmarked road bodywork and repainted wheels as a low mileage one owner machine. Nice.
The advice I give my kids Loans pcp etc are all great while you can fund them Make sure you can continue payments should you find yourself poorly injured etc
A motorcycle is seen as "benefit in kind" and you'll pay 20% of the purchase price per year in tax. say £20K buy price, then £4k removed from your take free earnings each year.... until it is sold.
I'd be careful not to post pics or let anyone know. Ducati aren't known for their support of track bikes IME
Do what is right for you. What's right for one person might not be for someone else . As a footnote, cash on deposit in a swiss bank will cost you money, not make you any, as they are awash with it and don't know what to do with it all.
I'll see what feels right. But one thing I do know is that if I didn't have the money for it outright then I probably wouldnt PCP it either. I'm quite an austere git tbf, and PCP would purely be to lose less money than buying it outright would. I like the idea of giving it back after 3 years no hassle, I've seen on the classfields people that bought outright V4's and v4s's and their struggling to give them away.
A lot of hate in here for PCP deals, but they can and do work for a lot of people. The key point is it all depends on your own personal circumstances, and not anyone else's opinion who has never gone down that route! I PCP'd my V4S, it made a lot of sense for me. 1. I didn't have the cash to buy outright 2. Protection given with the Finance company involved if needed, on an expensive potentially unreliable bike this was worth a lot to me 3. Got a 'good' deal on the bike & extras that may have not been there if I wanted to pay cash as no kick back for the dealer 4. No idea how they will depreciate, gives a bit of protection whilst the market works out what value they will retain If you can afford it easily then no issues. I put down a big enough deposit that will hopefully mean I'm always in the positive if I have to hand it back in an emergency (although probably not quite enough put down in reality) and the payment is about 5% of my take home pay so hardly a stretch. To sum up, they aren't all bad but you just need to go in with your eyes open and understand the costs and implications of handing it back early if ever needed.
Yeah happy days. Quick query though I was told always put down as little as possible on a PCP? The deal I worked out I think it works out at about 8% a month of what I've got left after tax and all bills come out, to have that and know the exact financial result of the ownership, I'm happy.
I'm not too up on the 'right' thing to do with deposit size to be honest. Technically you lose it so it's a first payment rather than a deposit as such, but for me if the deal costs you £xxk which is deposit + payments then how that's split out doesn't really bother me. Some don't agree and say you should put down as little as possible but this also means you'll pay a bit more interest over the difference. They key thing for me was trying to cover the first big chunk of depreciation so should I need to sell it back to the dealer I wouldn't have to fork out more cash to get rid. The certainty is a plus point that's for sure, if you keep it full term you know you can never be more out of pocket than the deal says, but you might end up with some cash left at the end which would be a bonus. There's a lot of financial uncertainty coming up so at least tying into a PCP means it will 'only' cost me a maximum of about £13k over 3 years. Buying cash and PX'ing after the market being fucked could cost more, we'll never know but it's all a gamble. I struggled selling a bike for £6.5k private, only have to look at people selling Pani's on here for £15k and not having much luck as a private sale.
I know mate, scary how low people are gling and still no bites. I know I could have this bike for minimum of 3 years as well, I loved my 899 I don't know why I bloody sold it.
I find the concept of putting down a large deposit ,paying x amount each month for three years and then at the end handing it back (as most seem to do ) and ending up with nothing rather bizarre ,no wonder the manufacturers love it !
Agreed. I'm gonna put down 2k, £216 pounds a month for 3 years. Optional buy at end for 7k. Wouldn't put down more than 15%, max.
For me it's the save up and purchase outright option. Prefer to have an asset albeit a depreciating one than a liability every time. For me I feel it has worked out better as I am totally debt free with 11 assets hanging round me, some of which are worth a good chunk more than they cost me. My last new purchase was my Tricolore in 2007, reckon it has averaged about £500 a year loss including the VAT which would have been shot anyway. Ultimately it's down to personal preference or circumstances, horses for courses and all that.
Wait a few months and buy a second hand one, that way someone else has paid the initial depreciation for you.
PCP is basically just paying for the depreciation. If a bike costs 20k and in 3 years it's worth 12k (this is the Guaranteed Future Value) you are paying the other 8k + interest. The more deposit the less you "borrow" with interest. In theory if you put down an 8k deposit in the example above your monthly payments would be 0.
