Has anyone used a 3rd party finance supplier which specialises in pcp for vehicles as opposed to the TriOptions? I'm not interested in getting a bank loan before the thread goes down that route, I'm just after alternative funders that offer more competitive rates and term flexibility than TriOptions. At 7.5% it's a bit steep when you consider the alternative offers out there with other manufacturers, ok BMW rates can also hit the heights of 7.9% but that's Black Horse and I'd also try to avoid blindly going with the 'preferred supplier' if there's some better choices. Cheers
The APR calculation in PCPs is pretty complex and IIRC (I used to work in the industry) takes into account the funding of the balloon or residual payment, making the APR look high compared to a loan or HP. The thing to watch out for in PCP is the fair wear and tear clause and any charges at the back end. This can be pretty subjective and for this reason alone I would stick with the OEM branded package.
I looked before and could not find anyone for Motorbikes I also spoke with Blackhorse - they said the rate is set by the Company - Ducati They would not deal privately either. Does not help - but I am interested if you find someone else
An example of current MV finance for comparison - I just look at how much total interest and how much the balloon payment is then decide
They'll be a kick back agreement on some of the finance rates. In other words the funder will offer X% to the brand (or dealer) and then they'll be additional Y% added on top to form the kickback from each finance deal done. That's why even with the same brand you'll have varying levels of rate on bikes worth similar values, that's why I know it isn't value driven as some rates kick in on value, so you might get a better rate on something higher value but when both bikes are the same value and there's two different rates it'll more than likely be inflated on the higher percentage rate So if they want to make a bike more appealing because of lagging sales or over stock, they'll cut out the kick back and just make the margin from the bike sale. So bmw for instance have a couple of bikes I'm looking at broadly the same price bracket, ones at 7.9% the other 4.5% Ducati have the Street Fighter at 7.5% Money is cheap now, cheaper than its ever been, I think rates north of 5% are a bit greedy
Black Horse (Lloyds) who run the Trioptions finance scheme used to be one of the most expensive finance providers out there as far as the applied interest rate goes. Ducati will be underwriting the residual aka balloon payment, Black Horse will only be taking a risk on you as the credit risk. I am surprised Ducati don’t run their finance through VW Bank seeing as how they are part of the VW group, effectively they are giving away money to Black Horse. Anyway, in short, unless a 3rd party financier can find someone to underwrite the RV there won’t be anything else out there. I guess the market is too small and specialised when compared to cars.
I know a bloke who does finance funding, but he couldn't really get anywhere close to the shitty Ducati figures, didn't seem to be too many people who would do PCP on bikes unfortunately. Also the RV was lower so the small saving in rate was eaten up on the monthly payment anyway, for me I stuck with the dealer for ease.
