December Deal on AT
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Any link ?
Deleted account 191119001
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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 
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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
Except last year.... £3500 off RRP and 0% 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
TwoTone
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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
Honda pay the finance company the interest upfront or take an amount less than the amount financed.
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
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
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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
The Africa Twin deal was roughly as follows:-
Brand new Africa Twin DCT = RRP £12,500
Dealer Contribution = £3,500
Customer Contribution = £0
PCP Financed at £70 pcm
PCP Finance = 0%
Balance to pay after 3 years = £6,400 or hand the bike back
Mileage allowance = 4000 miles per annum, 12,000 total over contract.
The way I looked at this deal was.....
- I get a brand new bike and not pay a single penny deposit. Walk in, sign papers, walk out with keys and Happy Days smile.
- I only pay £70 per month, which is the cheapest finance I've ever had on any bike in my 30 years of buying bikes. Even CRF250's and monkey bikes are more expensive than that.
- I won't miss £70 per month. Mileage restrictions don't apply to me as I'll be paying off the balance and keeping it. Its a really nice bike for £9,000 total payments. In my opinion, a Bargain !!
- So I can happily write off the £70 each month. £6,400 is cheap to then pay off this bike after 3 years. Depreciation has been paid for by dealer upfront and its still a really good bike.
Which ever way you look at it.... it's a good deal.
The deal ^^ does look pretty good on face value It helps that Honda own the finance company too
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
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
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.
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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 repeatedthe money I saved on the deal I spent upgrading the bike, ohlins suspension etc etc and it's totally transformed it.
Money I saved on the deal could've bought a brand new Honda Monkey Bike
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
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?
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.....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
If it's a good bike, you just keep it and pay it off.
Or if it's a Lemon, you hand it back (fight off their lawyers regarding discrepancies in condition/mileage/expectations) and walk away grinning from ear to ear.
Then stick your £6,400 on another better condition, lower mileage HAT of the same PCP returns
I'll be keeping mine as I've spend £1500 on farkles which I would actually like to keep on the bike and they have 'adventure (crash) history' with me now
The bike looks like it's been to Mongolia, but I've only chucked it down a couple of Peak District hills....
Basically it's scratched to fuck and I'd be returning it in a wheelbarrow if it carries on
PCP - Persistently Crashed Plan. GFV = £0
Pic : Sleeping after a hard days riding with my mates, shhhh... you'll wake it up
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I guess that they have graphs/charts on depreciation but they cannot protect against a model that turns out to self destruct in say 30k miles (hypothetically speaking in this case but you get the point)
That link shows all the different bikes involved in the deal and every one has a deposit of £999 so I’m assuming some of the dealers are paying the deposit ?
When a dealer sells a new bike, be it for cash, on HP or on a PCP they get paid the full invoice amount when the customer rides away.
That may be the cash/debit card payment from the customer or payment from the finance company.
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.
As for the bikes all come king back at once....not everyone buys a bike on the same day so the 3 year old bikes coming back to market will be spread over the year. With peaks in the main selling months, mid March to late September, and if there was a particular promotional deal as with the Africa Twin last year.
Now 0%. In effect there are two ways that a customer can be offered this at bike buying time. As has been stated already, the finance company don’t lend money for nothing. Somewhere the interest gets paid.
With 0% deals it’s usually the importer that pays the subsidy to the finance company. They can negotiate a better rate for themselves because of volume.
The other way is that the dealer pays a subsidy to the finance company so discounting the finance rate. He would be hard pushed to be able to afford to pay this subsidy AND discount the bike.
Where things with these deals get muddied is by using phrases as dealer contributions. There isn’t a £3500 margin to give a away in an Africa Twin. That discount would have been from Honda U.K. Given to the dealer as discount or bonus payment on registration. They may well have had to buy X amount of bikes to qualify to be able to offer the deal. Honda UK can be quite dictatorial to their dealers.
Is PCP the best way of buying a bike? Do they affect residual values?
The market finds its level. Supply and demand and all that.
You pays your money, you takes your chance.
Oh, yes dealers do like PCP deals....if it shifts another unit and they stay in business a bit longer.
That may be the cash/debit card payment from the customer or payment from the finance company.
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.
As for the bikes all come king back at once....not everyone buys a bike on the same day so the 3 year old bikes coming back to market will be spread over the year. With peaks in the main selling months, mid March to late September, and if there was a particular promotional deal as with the Africa Twin last year.
Now 0%. In effect there are two ways that a customer can be offered this at bike buying time. As has been stated already, the finance company don’t lend money for nothing. Somewhere the interest gets paid.
With 0% deals it’s usually the importer that pays the subsidy to the finance company. They can negotiate a better rate for themselves because of volume.
The other way is that the dealer pays a subsidy to the finance company so discounting the finance rate. He would be hard pushed to be able to afford to pay this subsidy AND discount the bike.
Where things with these deals get muddied is by using phrases as dealer contributions. There isn’t a £3500 margin to give a away in an Africa Twin. That discount would have been from Honda U.K. Given to the dealer as discount or bonus payment on registration. They may well have had to buy X amount of bikes to qualify to be able to offer the deal. Honda UK can be quite dictatorial to their dealers.
Is PCP the best way of buying a bike? Do they affect residual values?
The market finds its level. Supply and demand and all that.
You pays your money, you takes your chance.
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?
Theres 2 options with the Honda when the pcp comes to an end, either take it to the nearest Honda dealer or ring the tel no provided in the pack and Honda uk will collect the bike at a cost of £100 collection fee, i was told if you hand it back to Honda uk they scrutinize the bike more than a dealer would.
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