Any link ?
For zero % finance you end up paying in the end usually because they will charge full list price for the bike It's just marketing to get you into the showroom
Except last year.... £3500 off RRP and 0% finance
It is illegal to offer a cash discount in lieu of 0 per or low rate finance.Looks good (without knowing the details) How much more discount was available for cash?
The finance company is a separate business and has to borrow their money and make a profit when they lend it out
There are payments to be made, under the table perhaps, for commision etc these have to be funded ultimately by the customer
A bank loan for between 20 and 25K can be had for 2.8%APR today
So it pays to do the sums before a decision bearing in mind on finance you do not own the bike and may have mileage restrictions whereas a bank loan funded bike is owned
outright
Call the discount a deposit contribution then! Is the RRP inflated or is the advertised price for a base model with no bling Is there an arrangement fee and or a document fee Are there dealer add ons which will bump up their profit such as paint protection Is there a delivery charge?
There could be three transactions at the dealers Firstly buying the bike Then buying the finance and finally part exchanging
The 0% is smoke and mirrors It's designed to attract and get folks in to the showroom and then to keep the customer's eye off the ball
4,000 miles PA is a fairly low allowance for some at least with 7p/mile over that charged iirc I'd be interested in how the future values compare with actual sales after 3 years when a glut of pcp bikes hit the market and of course is The AT a good bike or a lemon? Time will tell
6ppm if you go over the 12k over 3years, the Honda bod on the stand @ bike show said the dealers killed residuals and GFV @ £6400 means dealers will struggle to shift 3 yr old bikes.
The GFV on the sport is around £5k ! The deal on the 2017 bikes will not be repeated the money I saved on the deal I spent upgrading the bike, ohlins suspension etc etc and it's totally transformed it.
6ppm if you go over the 12k over 3years, the Honda bod on the stand @ bike show said the dealers killed residuals and GFV @ £6400 means dealers will struggle to shift 3 yr old bikes.
The GFV on the sport is around £5k ! The deal on the 2017 bikes will not be repeated the money I saved on the deal I spent upgrading the bike, ohlins suspension etc etc and it's totally transformed it.
.....I'd be interested in how the future values compare with actual sales after 3 years when a glut of pcp bikes hit the market and of course is The AT a good bike or a lemon? Time will tell
Okay, if the GFV - £6400 you either have to pay that to walk away with a bike (free and clear) - which I assume is above market value? Or - hand it back with an allowance on a new PCP?
It seems there is a very complicated calculation for the dealer to make which must include the GFV, S/H market and loss to shift that bike, new PCP deal?
Surely the GFV given when they sell you the bike initially, if high - although that might seem appealing to the customer - actually works against them?
Or - is there a part of it, that I've missed?
Our local dealer just advertising 4 yr no deposit 0% - almost tempted!
See the big H is offering this on yr 17 & 18 fireblades and ATAS as well until 3rd January.
Any link ?
In the case of PCP it’s the finance company that set the GFV. It’s them that the bike is ultimately given back to at PX time or trade in time. The dealer doesn’t have to do a PX deal with any bike that they don’t want. They are running a business and the deals that they do have to make sense for them.
Oh, yes dealers do like PCP deals....if it shifts another unit and they stay in business a bit longer.
This is a new appreciation for me - are you saying that the dealer puts the rider back out on a new bike (PCP or otherwise) and calls up the finance company (the manufacturer/importer) and basically says “got a bike back in, what do you want me to do with it?” - and it is the finance company that takes the hit on it?
I’m conscious that the dealer is the one who has inspected the bike (or not) and has accepted any damage and signed off on it - on behalf of the finance Co?