Advice please

[simplyexploring]

I have a standard GS12 at moment on a 04 plate, but now looking to buy a GSA on the bmw flexy plan finance deal. I will be placing down a £3000 deposit.
But when it comes to finance deals I arnt so clever.
I understand how the finance deal works but what I want to know is there a catch? Any down sides to it as opose to normal finance? and any plus sides?

sorry If i sound thick but I never bought a brand new bike before and im a little worried im rushing to buy a GSA in the wrong way.

Any advice would be very greatfull

 

[JohnnyBoxer]

Tell us a bit more

Is the a residual or 'lump sum' at the end

If so you're paying interest on that too and is more expensive than a normal full repayment HP/Loan......but obviously with a residual, the monthly payments are less

 

[Yoda]

Are you buying personally, or is it a company purchase? If the latter then there are other finaance deals available including Leasing (and some reclaimable VAT )

 

[simplyexploring]

Yes its the deal with the lump sum at the end, and its a privite purchase for me.

Been wanting a GSA for so long, but want to make sure Im not doing my self over in the long run. I cant afford to do it on normal finance.

I really liked the idea of low payments for a brand new bike, and at the end trade it in and have another. Is it that easy?

 

[Shep]

These deals always look attractive , untill you get to the end The balloon payment at the end really hurts, eating into the p/ex value of the bike or if you want to keep the bike, any money outstanding will need to be paid by a loan or savings etc.

Buy only what you can afford is best IMO

Shep

 

[Andy Michael]

These deals work if you can't afford the bike outright or plan on changing every two or three years,yes you will take a hit on the PX with the ballon payment but you would on a cash purchase anyway.I've used this scheme to fund my last two GS's and it worked for me, but do your home work first it won't suit everyone.

 

[simplyexploring]

These deals work if you can't afford the bike outright or plan on changing every two or three years

Thats what I want in the long run, just want to get into a position where I can have a new bike every 3 years.
I take it I can just sell the bike before the ballon payment is due and not loose so much, there for having a larger deposit for new one. Or is that not so

 

[Andy Michael]

Thats what I want in the long run, just want to get into a position where I can have a new bike every 3 years.
I take it I can just sell the bike before the ballon payment is due and not loose so much, there for having a larger deposit for new one. Or is that not so

Yep that's probably the best option giving you more money to play with at the end.

 

[snoopy]

Banks are cheaper then BMW finance, as I found out.

 

[tothy]

Hi Snoops
I use these plans to finance my bike it works for me always keeping full warranty and changing every 2 years using bike as deposit and payments stay around the same each month.It is probably a slightly more costly way of doing things but it works well for me.If you intend to get attached to one bike and not change regularly it probably is not for you.

 

[wessie]

Check out any mileage restriction. As a colleaugue just found out with his VW car, if you go over the agreed mileage then there are stiff penalties to be paid. These can make what was an okay deal seem very expensive in the long term.

As others have said, do some sums and compare alternative finance options. This sort of scheme is heavily biased towards the manufacturer as you will only get the best from it by remaining loyal to the brand at the end of the term.

There have been some threads recently about cash discounts across the BMW range. Are you getting a similar discount? If not then try another dealer or raise the finance with a bank and do a cash deal.

 

[simplyexploring]

Thanks for all your replys guys

I did check the milage thing out and its really only a problem if I decide to give bike back and walk away.

I have sold my bike, so of to dealers next week once money is my hand

 

[Andy Michael]

Good luck with your purchase you won't regret it I'm on my second GS1200 this is the first time in thirty years of biking that I have bought the same model twice, and I will probably get another one in two to three years from now, to me it really is that good!

 

[Brian ROSEN]

"Banks are cheaper then BMW finance, as I found out" ......sensible advice; you are the buyer therefore you are in control. Shop around for finance as much as you would for a good deal on any purchase. Be honest and if you work out accurately what one or two bikes will cost you over say the next five years the finance scheme most suitable for YOU may well become more apparent. (Silly to say it, but watch out for the small print.)

 

[robbie c]

nonono

keep the 12 and stay debt free
" debt is the worst form of poverty" can't remember who said that