I looked at doing PCP with the Diavel in April. Over a three year period I would have paid around £500 less than if I paid the cash difference from the 959 I was p/x'ing...........and then I would (in theory) have to hand it back and have nothing. So by paying cash and £500 more I still have an "asset" and it's mine.
Na think the secret is currently no Mrs or kids (that I know of). I know the impending doom of my money no longer being mine is approaching I'm just making hay when the sun shines.
Yeah but it's never as simple as that. There are some bikes that it just makes sense to PCP, like you guy walk out of a dealer with a brand new street triple or 636 ninja for less than 100 pounds a month and a small deposit, if you bought one outright it would guarentee work out a worse deal.
PCP is just another way of borrowing money. People need to do the maths & decide if they can suck up the additional cost vs buying outright.
PCP serves the dealers and manufactures by alowing a high purchase price, gives a dollop of commission to the dealer, keeps a stream of 2-3 year old bikes coming to satisfy the used market and makes expensive new vehicles affordable to the masses. Whoever came up with the idea is a genius, it serves the industry far more than it serves the consumer. Like all finance I try to avoid it if possible but my bikes tend to be keepers. My previous bike, an MV, I did get PCP on but paid it off after year 1. I was going to be spectacularly over the mileage allowed. Having said that it depreciated badly, I would probably have been better off just keeping up the payments and suffering the mileage surcharge.
Horses for courses and there’s no such thing as a free lunch. Ex demo is deffo good value for money but probably wasn’t run in properly
The cheapest money to borrow is your own. However it’s dressed up, if you employ the services of others you can only expect to pay for that service. Inscribed on the walls in the Den of Thieves!
Never ever had finance in my life apart from a little loan from M&D on the second car,a Mk1 Golf Gti which i paid back within the year well before the agreed time frame .If you can't afford it with your own savings walkaway.IMO
Try a personal bank loan (I know... banks/bankers - rhymes with...). You get cash, paid back at a rate to suit your income. Said cash buys the object of your desire, which could be sold to pay off the loan if it had to. Normally there are methods to pay off loan quicker, etc. My internet bank would give me a loan for, say, under £10,000 in about 10 minutes 'cos I is old and own a house. Not so easy for youngsters..... PCP I would use if considering buying a new electric car 'cos the tech should change so quickly you wouldn't want a 3/4yr-old electric vehicle.
The first question I'd ask is why do you want a bike and what for? My last 3 bikes have cost no more than £2,500, the first two of those 3 took me all around europe, U.K. commuted and just for fun. I paid cash and sold them more or less for the same money If you like a brand new toy every couple of years and only see can you afford the monthly figure, then I doubt you will worry about it till it comes to trade in time when you have a little grumpyness on the px and finance cost, that will soon dissapear when the new toy arrives
If I’d have bought my 435 outright, I’d have lost 20k last year. 0% pcp, all I do is pay 25k depreciation over 4 years (incl deposit). If it’s not used and bottom of the curve, and the finance is cheap, PCP makes total sense. Just make sure you have a back to purchase price GAP policy, as if its written off, you will have to find the difference.
Borrowed money is fine for an investment, be that home or business.... but not toys! Some thing are simply unobtainable without help. I’m a big believer in family loans, so much so that both my daughters now owe me a small fortune between them! Long term planning.
Yeah I already borrowed 80% of the worth of my property from my parents to pay for it, I'd like to not be in their pocket for something. PCP is looking attractive as I reckon I'll lose less than I would if I bought it outright and I wouldn't have to worry about the sale of it. I've made sure I have the amount of money that if needed I can pay for the bike in full at any time ensuring I can still kind of sit on my high horse.
Be no point with a bank loan, I'd end up losing the same amount of money if I purchased it with my own money but then plus interest.
Mine was 52k list with options, and I paid 38k after discounts & allowances brand new. It was same price and a 3k mile 3m old demo and cheaper than pre-reg. And came interest free I was looking for a 25k used car, this turns out probably cheaper in teh long run! Because of PCP
