Never said you did. Its is an undertone that appears often in these threads. Its just how some view the world: cant afford it, dont buy it.
That makes sense if you don't rent something that's depreciating when you can buy something that's appreciating
If you intend to keep it then pcp's make no sense, if you like to change to new toys regularly then a pcp makes emotive sense but not always financial sense so shop round. I'm not sure if you have to take the companies own pcp to pay for it and not another companies ?
You can arrange your own finance, so I guess you can arrange your own PCP - I think PCP will be harder to self finance as a ploy for dealers to get you to sign up to their interest rates.
Only Tim this isn’t true is of very low, especially zero, interest and a contribution of some kind. Didn’t KTM do this with last model 1190: 3k contribution, low deposit and 0%. They happen more on cars but we’re hitting clear-out tone so expect some on aprilia, Suzuki, Kawasaki especially. Seems yahama never do and ducati very rarely. Bmw bikes have an occasional offer but often still 6%plus apr
I bought the Z900 outright for cash, it's a keeper. The Supersport is most definitely not a keeper, so quite happy to rent it and then swap or give back at the end. I will have had sufficient value out of it for what I've paid at the end of the three years such that I won't feel diddled. One's eyes are quite open when one enters these agreements.
One of the key things to do is use the bike to its max, so you get best value for your rental Its going back (probably) so who cares if its got 18k on it after 3 years!!
The Finance company will if your PCP deal only factored in 5K miles PA, and will charge you accordingly for the excess mileage.
I think PCP caters for all sorts of situations, I've got family in the car trade and I'm told certain customers that definately have the mula to purchase outright often PCP due to the fact their money is making 8 to even in some situations 12% elsewhere. So why buy outright. Only thing your losing there is maybe bragging rights if your that way inclined. The other situation being its an affordable way for some people to realise their realistic dreams. It's not for me but I definately understand it.
I looked at PCP when I bought the Diavel recently. Over a three year period vs paying in cash it was approximately £500 more going the cash route..........and of course at the end of the three years I’d have to stump up a huge balloon payment too if I wanted to own it outright. So pcp didn’t make sense to me.
Even deals like this can work against you as a special manufacturer offer means that in three years time their will be a glut of that model on the market at the same time forcing s/h prices down. As long as people appreciate what they are signing up to to I don’t see a problem with it but you do have to be careful. Tbh it won’t be long before the majority of new sales are full lease agreements imho.
Yes. My plan is with pay balloon, at the end of the day I got 13k off list so it was cheaper than a 6m used car at the time, or trade in a 2 1/2yrs and try and get price I need to clear what’s owed. I signed to an 8k pa mileage, I’m doing 20k, so worst case i’ll Get a loan and pay it off. It’s a nice, comfy car that I could happily keep for years; only risk is being a 3l diesel the car tax may become unmanageable(it’s about 450 now)
I took a low 2.9% Apr loan to clear my car PCP, 2 years down the line I had a car bought and paid for I'd owned from new. I'll be keeping it for at least 10 years so I'm now into 0 payment motoring. I had a 3k dealer contribution so it covered the VAT and made it cheaper than "nearly new". PCP can be OK if you go in "eyes open".
PCP does give you lots of options at the end of the agreement and were the second hand values of your car to crash for any reason, you can walk away without any come back on you and the finance company takes the loss. Had you bought that via HP or with cash, it’s the you who would fund the loss. In the current world, there is no doubt that values of Fossil fuelled cars will slump at some point in the future when the next cleaner power source is clear. Unless I was absolutely minted there is no way I would buy a brand new car worth a decent sum, any other way than PCP.
If it was limited run and a guaranteed increase of value from sale you would. But aye any other situation I agree.
If you have the cash.. then you save the interest... but a typical PCP with 3 years on a 20K bike - 10% deposit would mean your paying around £3,000 interest over the 3 years... with a residual payment of around 10K to buy bike.. The interest rate Ducati charges at between 6% and 7% is not good compared to conventional Loans at your bank... But like Bradders - if you can get dealer finance deposit allowance (cars)... this can be substancial... and can be used to offset the higher PCP (not with Ducati)... With bikes - I failed to find other PCP deals... other than Black Horse.. through dealer (not possible direct).. but for cars there are alternate PCP financing available... but again they would come without the Desposit Allowance your dealer may give... So like all things in life - shop around - work out the sums - know what your getting / paying... go for it.
