899 finance deals

I'm not purchasing? I purchased in September 2013, so I am good.

I do agree with some comments made earlier though that it's a different matter thinking about trackdays and modifying when the bike is on PCP, tbh the risk of crashing it on track is super high when u are paying it off so slowly.

 

cash all the way

 

Personally I prefer to buy used and pay 100% cash, however don't knock these schemes, what is the point of tying cash up in a brand new bike only to trade it in 3 years later and take a £5,000 hit. all you are doing with a PCP is paying off the £5,000 hit over 36 months plus some interest for the privilege, if you are using the bike occasionally, and you intend to keep it standard and the mileage low, I can't see what the problem is.

I'm 50 next year and I hope to treat myself and upgrade from my 600 SS, I'll have a budget of around £4,000 (which I have in cash) which should buy me a lovely 749, however the tri-options is very tempting, £120 a month is bugger all and I could keep my 600, it would be a nice birthday present to have a brand new 899 tucked up in the garage next spring.

 

For £4k you could probably get a nice 999. If you hunt around. Or a 916bip. great, great bikes that no-be would be disappointed to own. Im not sure on PCP as in effect you are 'hiring' the bike. It just wouldn't 'feel' mine.

I got a good deal on a brand new 1198 for £11k. Okay it was a 2009 but it has 11 plates and now has everything a 2011 had. For a lot less than £1k. Its much more than enough for me. I bet theres some great deals on new 848's and they're cracking bikes too.

 

what happens if after you term and your gfv is say 6k ,but you want to swap brand do you think the dealer would only offer you the 6k knowing you will be taking your business elsewhere,but if you were to stay with the same brand they maybe would offer more as a incentive?

 

And it's worth bearing in mind that if you are contributing circa 25% deposit then the APR is quite good at 5.7% much more competitive than a bank loan. Of course the monthly payments are low because they relate to a smaller proportion of the total finance due to the balloon being deducted.....

 

Again?! You are just paying interest and depreciation. Pay it cash and you lose similar amount, except the intreset. Unless you could make more in the bank on the savings..yeah right

Simple terms, you either get a loan and pay £400 pm over 3 years or pcp and pay £200 pm over 3 years and have £200x36m left to pay

makes a new bike in used bike territory for most buyers

 

Absolutely right, the Americans pioneered this type of finance, us Brits just need to get our head around the concept that it's alright not to actually own the bike.

 

Plus if the arse falls out of the market, say a 1198 last run which at year 3 has been replaced twice ;-) hand it back with. O more loses. Own it, and its all yours, baby

 

My APR is 4.7%, think the total fee for credit is £700-900 I think. It's cheaper than a 'traditional loan'

 

The depreciation on the bike is irrelevant, in that it is going to depreciate whether you own it or hire it.

So what you are really saying is that the bike costs £12.6k, but you are borrowing £4.6k (12.6k - 8k deposit). To do this will cost £1k over 3 years, or £333 per year. So that is a fixed interest rate of 7.2% p.a.

Well, that isn't too horrendous.

Of course, there is also the opportunity cost of investing the £4.6k, supposing you had it. What rate of return could you get on that investment? I don't know. But if you do, your real cost of hiring the bike is this rate minus the rate you have to pay (7.2%). Then it looks even cheaper. There are many ways to look at these things, but £333 per year to own a new super bike doesn't see unreasonable if you don't mind having a debt.

But all that assumes that the bike will have depreciated by the £8k you originally invested, which it almost certainly won't have. After all, in this scheme, the £8k is written off. So the thing only makes sense if you buy the bike for the residual value at the end of the contract, even if you sell it straight on. Of course, you can often negotiate these things, i.e., buy it on paper for it's residual value (which should be £13.6k - £8k = £5.6k), "sell" it to the dealer for a trade in price (let's say for the sake of argument, £8k) thus giving you a virtual £2.4k deposit to put towards another new bike.

Hope that makes sense.

 

pcp the way to go easy to understand and im as thick as a submarine door

 

Great explanation. What's not been mentioned as far as I can see is that paying cash is fine if you have no debts with interest rates higher than the PCP rate, including a mortgage, if not some PCP's including the 899 deal just finished was cheap money.
Added bonus on the recent deal was £1400 worth of Termi's. I choose to leave the cash in my flexible mortgage account as the PCP rate was on par with the mortgage interest rate.

 

There are some varied opinions on PCP and this thread has made interesting, and in some cases alarming reading. PCP may work for some but isn't for me. I think a traditional bank loan is the best way. Tesco's rate is 5.1%. If you want to keep your repayments lower, take the loan out over 5years or even 6 rather than 3. Fair enough it's 2/3 years longer but at the end of the day the bike is your's to do with as you wish. If you take out PCP because you can't get a bank loan then it's simple - you can't afford!. The problem with PCP is once you hand over YOUR hard earned money or the bike that YOU own as a deposit you step onto the PCP tredmill, and it's a tredmill you don't control. Unless you're going to ride a Ducati and swap it every 3 years till the day you die, you are at some point going want to get off the treadmill and that is where the problem is as you only have two choices, give back the bike and walk away or pay off the remainder. Nobody is going to want to walk away from the bike they have payed into so you're going to want to pay for it. If when you first take out PCP you don't have a solid cast iron plan about what happens at the end then, and I apologise for saying this but you an irresponsible borrower and are part of the buy now pay later culture and one of the reasons this country is knackered because you borrow today and worry about the repayments tomorrow, hoping for a pot money to fall out of the sky to bail you out!

 

That's us told!......

 

Utter tosh.

 

I was interested in a new 848 at the right price as I was disappointed with the 899 (too many compromises over the 1199, for the money, imo). Anyway, the two dealers I looked at were still asking near 12K for an 848 Corse, one was throwing in Termis. Not a good enough deal for a last generation bike, imo.

I ended up buying a low-mileage 1098 instead, no compromise there :wink:

 

Interestingly when I bought my standard 848 evo in September there were only 2 showing on Ducati's stock system and mine had to be got from another dealer. In December they got 4 more standard ones and are selling them I think as 2013 models pre-reg for £10xxx which is a bit off.

The ONLY reason I didn't get the evo corse was because I didn't like the matt grey and there weren't any red ones; but they were £12xxx new so I would expect to be able to get them for low £11xxx now surely?

 

Bank loan or PCP?

Has anyone thought of a credit card? Maybe putting a large deposit down and paying the rest off with a credit card at 0%. some are 0% for 18 months. once the 18 months are up transefer the ballence to another 0% credit card paying the 2% transfer fee. aslong as you pay more then the minium ammount each month (say £100 - £200) surely this could be a viable option?

plus the bike is yours and if you cant afford the repayments on the card, sell the bike and pay it off.

However i dont do this i paid cash for my 848, but this is just a thought and throwing another option out there!