Don’t forget you are pissing away over £2400 (on £14600) to the exchequer by buying new. As you ride off the forecourt on your £12166.67 bike.
PCP is just the modern way. Back in the day my dad would never buy anything (mortgage excepted) unless he had saved for it and had the money. When I left home and bought my cars and bikes etc I would save some money and top it up with a loan. However my kids see PCP as very normal. They see “renting” their cars etc pretty much like their phone contracts. And they get a new (and expensive) car every 3 years without having to sweat too much for it.
I'm not anti PCP at all. Gets you on to a dream bike at manageable costs. I put down a chunk on my V4S then financed but paid it off quite quickly. Not the smartest method I know but fuggit. I dread to think what I've spent on it now. No idea what its worth either. I daren't look I'm dying to do a track day on it though and rag the tits off it!!
I think PCP was meant to be basically just paying the depreciation and interest costs but it seems to work out more expensive as depreciation is higher in my experience. people can afford £x amount a month and go for that but if you add up what it’s actually going to cost over the term it’s scary - that’s why I was wondering what real world equity a V4 has in it. like I said before my 959cost me £3500 in depreciation over 3 years and 10k which I would take all day long but 15k over 3 year for a V4S is heavy if there’s no equity in it at the end
The quotes on the Suzuki website are a long, long way from this now, mind. I don't know how they could have afforded to do deals like that! Should I ever go back to the land of the Rising Sun, maybe I'll look up yours, under the 'one careful owner, never thrashed' section of the MCN classifieds, when you give it back to the dealer, as it whimpers whilst steam emanates from engine, brakes, and tyres! Haha
When I bought my 2019 V4S: - £5k deposit - £241 a month - 36 months - 3k miles pa - £14224 final payment - £28k total Looking at values now they are probably £18k retail, so another 18 months in I can’t see there being much equity in my deal. That’s the only reason I haven’t settled it early as I might need the easy hand back way out!
I think PCP is a bit like pet insurance. People have pet insurance because vet bills are so expensive and they are expensive because a high proportion of customers have insurance, so it’s a self feeding monster that gets bigger and bigger in premiums and vet bills. PCP is heading the same way, the forecourt prices for new cars gets higher because the customers not financing the £25k, they are only financing £10k so they can afford to pay a bit more, then at the other end the trade in value at the end of the term is going down because the market value has fallen due to the glut of 3yr old pcp trade ins coming to market. It won’t be long before the depreciation your financing over the term is more than 50% of the vehicle your buying and not long since that finance would have purchased you the vehicle outright on HP with your trade in? The savvy buyer buys the 3yr old PCP trade in
So you need to find another £3k to top your deposit up for your next purchase or increase your finance and monthly payments and then in 3yrs time have no deposit left at all?
Said on here before but worth repeating IMO, PCP is the next miss selling scandal just waiting in the wings. Andy
There are pros and cons to both and I purchased my diavel 1260s with my trade in an a loan at 3% so made sense, but my car is over. £45k and the pcp offer apr was lower than I could get anywhere, and often you get a manufacturer and dealer contribution that you don’t get on direct purchase, my car will soon be swapped to traditional hp as I have over £5k contributions and with the cash I have, can get a really low rate, so pcp can work if you use it
My company is in bed with a London investment bank. From my discussions with that lot, many seem to think that the next big financial implosion (outside of covid) will be the collapse of PCP as it's very difficult to shift used cars/bikes/whatever for the money that they're allegedly worth. And whilst generally speaking, new sales were doing 'alright', used hasn't been for years. This then leaves a huge abundance of stock that is not only difficult to shift, it's also devaluing.. I can see it being a problem especially with the big question marks over fossil fuels. Afterall, much of the 08 crisis was due to the yanks fixing mortgages to absolutely fuck all
I totally agree it’s a bad thing in general used values are through the floor as they usually have better deals to buy new these days the quality of used cars are shocking now too as people know they are going to bin them in 18m and don’t give a shit about them
That’s today but I still have 16 months more depreciation to go so there won’t be any equity I don’t think! I won’t do a pcp again once this one is done, agree with a lot saying it will be the next scandal and I’m not planning on getting burnt. People get stuck in a never ending cycle of debt just to have the latest and greatest as PCP enables someone to get something they can’t really afford. A lot of people (and I probably half believed it at one point myself) say it’s sensible as you can use the capital to invest and earn more than the finance costs, but they never had the capital in the first place so it’s a completely moot point when there isn’t the offset! That said there will always be individual cases that do work out better occasionally. Edit just checked, my settlement figure is £17k with the dealers wanting £18k retail currently, so even with a 20% deposit and 19 months into the term I’m probably £2k in negative equity! I love the bike and it’s worth the money for the enjoyment I get and my only outgoing other than mortgage and bills but it’s bloody ridiculous. Never again.
True enough but as mentioned in here, I doubt the manufacturers would sell anything like as many units if it wasn’t for pcp
Buy an ex demo or 6 months used, there’s lots about. A dealer has knocked off 10% for my new SFS, that goes a long way towards the immediate depreciation. As said, if you can, get a loan at under 3% over 5 years, you’re paying a couple of hundred £ a year in interest. You can pay additional payments and there’s no penalties for settling early. Years ago I had a PCP, asked the dealer to do it over 2 years as the residual is much higher which bought the monthly payment down, tried it years later and 3 years was the minimum agreement the dealer would offer. Not bothered since, I always get an independent loan from Tesco or Sainsbury’s.
I'd never buy a demo. They all get pumped from cold by wankers like me. I know we jest, but my GaXeR has always been warmed up and over serviced. Demo's are like rental cars. You treat them like someone elses missus
