This just in from Riders Motorcycles, it seems that Ducati are offering the 3 year new bike plan called Trioptions, which allows you to change your bike every 3 years, or give it back to the dealer at the end of the 3 years (if you can bring yourself round to it!). Check out the info below. You could get an 848 Evo for £148 a month. That’s cheaper than my monthly train ticket to work!!
Fair ware and tear New Bike Under the trioptions are you allowed to drop it once or twice and would this be counted as fare wear and tear:biggrin:
great idea if you like renting a bike because you could exercise this option every three years forwever and never own a bike
This scheme is popular with more expensive cars as well. Pretty much all Porsches dealers use this as the main financial model to buy the car. The benefit there is the guaranteed residual value of the bike is supported by the manufacturer so the finance works out cheaper. Put it this way, a new 911 every three years is cheaper per month than a secondhand one. I can see this being popular for the high end models. The problem is you have the bubble payment at the end and it's usually a better bet to simply trade in and get into a new deal so you always feel it's a temporary affair with the car. I'm fine with that on the car but wouldn't like to not 100% own my bike. Also I'd be curious as to how they would view any mods. I'm guessing Ducati want full fat options taken at new and not a great deal of changes afterwards.
It's not different to buying on HP except you are not paying the full amount required each month to clear the finance within the repayments time. I've bought my car this way for some years now as i need it to be fairly new and reliable plus they are never out of warranty. Not sure i would want to do it on a bike unless it was a dream bike.
What are the figures for deposits ? Presumably like some car lease arrangements where you are charged extra mileage, and have to pay to fix any "dinks" or faults at end of your tenure? Steve
Only if you return the bike and don't take out a new agreement. Otherwise its' like p/ex'ing a car that still has HP outstanding. The bike has a market value (not necesarily the Guaranteed value) and there is an amount of finance outstanding. The difference is equity against a new one. The guaranteed future value should be set low by Ducati to encourage you to buy a new one at the end of the agreement, it's not in their interests for the GMFV to be more than the market value.
Is this the thin edge of EU regs that will control what you can modify, if you have a lease bike there would be no point it personalizing it as you would have to return it to as original at the end of contract.
I did this on a car once.... A year into ownership I sold the car which at the time people were twitchy about buying a car with finance attached to it. On my next car i got a normal bank loan.. The finance company own the car \ bike in these agreements.... A bank loan you own the car or bike and you can do any mileage you like and any mods you like.... I would never do a PCP again... I don't see anything wrong in buying bike / car on finance just don't like the idea of a PCP....
I don't believe that is true. You are owner of the bike in the same way as on an HP agreement. They use the word 'lease' as that is the name put to them but a pure lease is a very different type of agreement. Very few people actually give the bike or car back at the end of the PCP as they usually have some equity in it and don't want to lose that. the only time it might make sense to do so is if the s/h market has collapsed and the bike is worth less than the GMFV or you don't want to replace the bike with a new one.
Not sure this is so. It's very common in Switzerland for cars and I have done it. On my Alfa I had a leasing for 4 years. Then I leased the residual value for 4 years. During all that time the car belonged to the leasing company and I had to pay fully comp. After 8 years I paid up the second residual value and the car was finally mine. Would never do this for a bike. A bike is a luxury object. If you can't afford it, don't buy it.
Afford? Some people use their money in other ways ie sinking it into doing up a property or other investments... Just because you chose to buy a car or bike on finance doesn't mean you can't afford it. Bit like saying don't buy a house till you can afford it. A mortgage is finance!
Yeah, the essential difference is that a house normally increases in value making a mortgage sound financial sense. A bike normally decreases in value making you finance a depreciating asset. Which somehow doesn't make sense. But who am I to tell people how to do their finance management?
One thing I forgot to mention; you can do a pcp on a pre owned car..... I wonder if Ducati are sticking to new models only... A 996R\998R on finance wouldn't be so bad as they seem to be appreciating!
Yea but No but. I will have to disagree with fact that house normally increases in value. If you look short term yes but 20th century UK had 5 recessions/depressions. Each time housing market was affected. Fact is that in hard times if you are forced to sell a bike you are more likely to succeed and cash gathered will help you to survive for some time. Selling a house will be much harder not to mention what if you do sell, where will you go with no money and house? Your mortgage is at a time like that higher then value of property. Finally houses gain value over long time and people forget how quickly same house will loose value if all goes bang again. Another final reason why many think houses are safe bet is fact that if you do only have one house then you can sell everything else to gain cash to pay mortgage for that house as if you do not bank will take it. You do everything possible to pay mortgage and many at the end barely but do come out with one equity left and very quickly start thinking it was a good call. I for one prefer to have an asset that looses in value but I can sell it relatively quickly and use the quick cash to help day to day over one that plummets if things go wrong and I can not sell it. Finally bikes/cars seem to loose value to a certain point houses jest seem to loose value till recession/depression is over.
If you want to "rent" a bike then this is great. if not then it wont appeal. as in the car market this will only work on models with outstanding residuals. At present, Mercs can work out as a great deal if you pick the newest model. Im sure Ducati in their meeting weren't looking to make everyone happy but were "perhaps" trying to sell a few units in hard economic times as a Premium manufacturer. If you are not hung up about ownership then these are worth a look. I believe if you are self employed then the benefits are even greater??
Interest free is the best way of buying a bike! Pay chunks off when you want! If only houses were the same!
Is it my imagination Luca or weren't you asking about the joys of joint house ownership a couple of days ago? Thing is, there are no certainties in life so negative equity at a time that would be personally damaging is a possibility. But it tends to be the exception. The alternative to paying a mortgage is to pay rent forever. You won't ever suffer negative equity but then you'll never have an asset either.
