So not such a cheap deal (unless you actually wanted to ride the bike) and caveat emptor from the finance company
I reckon come hand in time they’ll be worth £7-8000
Not the bargain of the year
For Sale 2025 Norton Commando 961 SP PCP - £50.43/month
- Thread starter Geturelegover
- Start date
I reckon come hand in time they’ll be worth £7-8000
Not the bargain of the year
Is it a cast iron GFV or just a notional FV by the finance company (to make the figures fit the original deal)
It’ll be in the T&C’s and small print
When PCP first took off, it was always a GFV or MGFV and finance companies lost a packet
Nowadays it more likely to be a ‘suggested’FV and sometimes in the small print the lessee is on the hook for any shortfall from a sales realisation (at any point) and the market value of the metal at any given time, versus the HP balance outstanding
Hence the explanation in post 18
Just a thought as I haven’t seen the contract or the small print of it
No, it is a cheap deal. I get to ride a bike I wanted for 2 years fo £50 a month with no deposit. At the end of that I can walk away having paid far less than the depreciation I would have incurred if I’d bought it.
And if I want to keep it, I’ll probably get a 2 year old £18k bike for £8000. Seems a good deal to me
It’s only an issue for those whose circumstances changed and they no longer want the bike mid term, which would likely be a problem with any pcp
There’s a walk away option
Worked out for you
Maybe not for others that are wanting to novate their HP agreements though
Not mid term as the OP has found out
What are actually in the contract T&C’s ?
Has anyone read them ?
As others point out it is a mega cheap deal if you keep it two years and send it back.
I have combed through my contract and can't see where the escalated payment for early closure comes from, I think the figure warrants challenge. There would not be a shortfall payment relating to sales realisation or changes in market value unless there is any damage or lack of maintenance.
Let's not forget that PCP was designed to leave some equity at the end of the contract where the GFV was less than market value. Customer then had a deposit on the next vehicle, so in a sense to generate future sales. In the Norton case, GFV may well be significantly more than market value leaving a shortfall that someone has to fund !
I have combed through my contract and can't see where the escalated payment for early closure comes from, I think the figure warrants challenge. There would not be a shortfall payment relating to sales realisation or changes in market value unless there is any damage or lack of maintenance.
Let's not forget that PCP was designed to leave some equity at the end of the contract where the GFV was less than market value. Customer then had a deposit on the next vehicle, so in a sense to generate future sales. In the Norton case, GFV may well be significantly more than market value leaving a shortfall that someone has to fund !
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Thank you
Like I said, that would be the same for anyone that wants to exit a pcp earlyWorked out for you
Maybe not for others that are wanting to novate their HP agreements though
Why would it ?
Some HP/PCP are different perhaps
All pcp’s are a contract that the individual signs up to. If the individual wants to vary the terms of that contract then there’s a penalty. Otherwise people would just sign up for 3 months over summer and hand the bike back.
Likewise for the finance company. They can’t just suddenly decide that they want more money from you to exit, for example by increasing the final value.
I believe that legally it’s possible to exit once 50% of the total has been paid, so in this case the total is the total borrowed as stated on the finance plan. Quick search should tell.
The terms, as you say, may be different- interest rate, deposit, excess mileage fees, but I’d say this is a pretty regulated industry so they must all be broadly the same.
My excess mileage for example is 0.00 pence per mile, others have a different figure
PCP? I steer clear. If dealers and finance companies promote such a scheme its beneficial to themselves...no dealer would do anything that benefits the punter. Straight HP or cash is better.
My mate bought a motor some years ago and not only was the return value well less than advised at the time of purchase, he was locked into the brand.....unless, of course he walked away empty handed, and the dealer rubs his hands after he waved goodbye to the punter, who has nothing to show for it.
Just another motor trade con IMHO.
But GLWS
My mate bought a motor some years ago and not only was the return value well less than advised at the time of purchase, he was locked into the brand.....unless, of course he walked away empty handed, and the dealer rubs his hands after he waved goodbye to the punter, who has nothing to show for it.
Just another motor trade con IMHO.
But GLWS
I was struggling to see where they got the £4.3k figure from but reading through their email again I think they arrive at the figure because they call this a Voluntary Termination of the agreement and to do this you need to have paid 50% of the amount owed. The £4.3k is the current shortfall to this 50% figure, so if you add the 12 monthly payments paid of £600 and the dealer deposit contribution of £3.6k to that it is £8.5k and the list price of the bike was £17k. I may be completely wrong with the calculation but it works for my simple brain.
As for offering to clear the finance now including their expenses and return the bike I did offer this and explain the advantages to them like you also pointed out and this fell on deaf ears.
I don’t have problem keeping the bike until the end of the contract it’s just that if I could move it on now it makes life simpler, more space in the garage and someone else can have use of it for a year for only £600.
I still consider it was a good deal for me as I never had any intention of keeping it after 2years and so considered it as £50 a month depreciation and was aware of what it was going to cost over the 2 years.
I agree with your sentiments entirely hence why I have never had any form of finance in over 50 years of vehicle ownership. That was until this deal came along as I just wanted one more bike before giving them up.PCP? I steer clear. If dealers and finance companies promote such a scheme its beneficial to themselves...no dealer would do anything that benefits the punter. Straight HP or cash is better.
My mate bought a motor some years ago and not only was the return value well less than advised at the time of purchase, he was locked into the brand.....unless, of course he walked away empty handed, and the dealer rubs his hands after he waved goodbye to the punter, who has nothing to show for it.
Just another motor trade con IMHO.
But GLWS
I never considered buying new because of the depreciation so when the deal came along with effectively no deposit, 0% interest and £50 a month and walk away after 2 years owing nothing and not having to try and sell it I signed up.
I think Norton may be the only ones to gain from this as they shifted a lot of bikes for them quickly and put the brand out there unless they are underwriting any losses to the finance company?
PCP can work to your advantage if you know the game and are a competent player !PCP? I steer clear. If dealers and finance companies promote such a scheme its beneficial to themselves...no dealer would do anything that benefits the punter. Straight HP or cash is better.
My mate bought a motor some years ago and not only was the return value well less than advised at the time of purchase, he was locked into the brand.....unless, of course he walked away empty handed, and the dealer rubs his hands after he waved goodbye to the punter, who has nothing to show for it.
Just another motor trade con IMHO.
But GLWS
I'm the same as above.
It was too good to pass up.
Mega cheap deal. If you bought one, you'd lose more as soon as you rode away than the total amount of the PCP over two years!
The only downside is that you have to keep this hand built gorgeous motorcycle two whole years.
Not really much of a downside. I'm a serial bike swapper, but even I can manage to keep this two years without getting itchy feet.
It was too good to pass up.
Mega cheap deal. If you bought one, you'd lose more as soon as you rode away than the total amount of the PCP over two years!
The only downside is that you have to keep this hand built gorgeous motorcycle two whole years.
Not really much of a downside. I'm a serial bike swapper, but even I can manage to keep this two years without getting itchy feet.
Depends. I would normally pay cash, but on this deal I get to ride a new £18k bike for 2 years for £50 a month. That’s less than my mobile phone contract.PCP? I steer clear. If dealers and finance companies promote such a scheme its beneficial to themselves...no dealer would do anything that benefits the punter. Straight HP or cash is better.
My mate bought a motor some years ago and not only was the return value well less than advised at the time of purchase, he was locked into the brand.....unless, of course he walked away empty handed, and the dealer rubs his hands after he waved goodbye to the punter, who has nothing to show for it.
Just another motor trade con IMHO.
But GLWS
I get that view completely. But you've only done 255 miles since last April. That's about £2.35 per mile in rental alone. Quite expensive.
But it's a beautiful machine, and one that will no doubt become a rarity/classic in time. So, a long term investment might be worthwhile.
I think the Norton buying deal was the ultimate expression of consumerism
It’s so cheap why would you not (in consumerism terms)
People flocked to sign up, it was so invitational
Did they have a genuine desire for one - probably not ?
Would they have had such a desire to own/use one that they would have bought one outright-don’t be
silly Norton couldn’t shift them at retail, so they devised a scheme to get bums on seats and that was the only goal
It worked
Would I pay £600 a year (plus insurance and servicing/tyres and VED) for 2 years that I wouldn’t really ride much (as demonstrated by 200 miles a year) - of course not
We have a Norton dealer 5 miles away and it would have been easy to walk in and sign up for £50/month when I went into town for bananas and a pint of milk
Consumerism at its finest - it so cheap why wouldn’t you, you’re all mugs for not joining in the ‘deal of the century’ when most of us couldn’t really see the point of spending money, for spending monies sake, on something that we didn’t actually have a genuine desire or need for
The Emperor’s new clothes spring to mind
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