On a used bike under £6,000 its a viable option as long as you're the type of person who is disciplined enough to pay it off in time
PCP is effectively an HP agreement with one final large payment to make the bike yours. Its not really a lease agreement as such as the bike is yours as long as you pay the balance. You cannot do that with a proper lease agreement. The plus points to a PCP is usually that they are at very low interest rates or there are other accessories thrown into the deal. Some people prefer buying that way to investing a large sum of savings into a bike/car.
Is there really anyone who doesn't get this?! And good luck paying more than £1500 on a credit card, expect at least a 2.5% charge if they will take it
C 5.7% APR is relatively cheap money, and with the free Term's a number of us enjoyed its quite a good deal overall. As has been said previously the key with a PCP is ensure you have the means to pay off the balance if indeed you intend keeping the bike.
Debt. All fine and dandy so long as your material circumstances aren't likely to change in any significant way for the worse. No doubt there are still people in this happy situation, but as economic uncertainty increases in the world, it's not a bet I would be making. It makes sense when there is stuff you have to have (like a new boiler you can't afford, or a re-roof or something) but for a leisure luxury? Good luck. I thought the credit-fuelled consumption boom was over and that everyone was older and wiser now. If you think the banks couldn't still thrust the world into turmoil, you haven't been paying attention.
The modern world exists on credit. Without access to finance the system would fall over because that majority don't have enough money to make the minority any richer. Credit is a necessary evil in the modern world.
It is in a world where everyone seems dissatisfied with what they have, jealous of what their neighbours own and want the latest of everything regardless or not if they can actually afford it.
No I think most of us were more restrained in the 1980's, this is recent phenomenon, fuelled by celebrity culture. People living in humble three bed semi's on housing estates back in the 1980's didn't drive Range Rovers, they do now!
The fact credit card companies are giving offers such as 0% over 18 months or longer is because they are hoping in that time people will have built up a debt they can't afford to pay off before the offer runs out then the card company can sting them with huge interest rates. They don't want people to pay the debt off as then they don't make any money. So in effect they are still luring people into debt. So nothing has been learnt from the banking crisis because as long as financial institutions are willing to lend irresponsibly people will still borrow money they can't afford to pay back.
Or borrow money they think they can pay back, and then find out that some time in the future, they can't.
