Cash or PCP ?

[KWS]

Apologies for the slow reply, but I’m just back from Glasgae with a new set of kit. Just the test rides to arrange now

Thanks for all the input everyone, some sound ideas in amongst them, but I’ve decided to stick with Plan A, which is a higher spec used model.

 

[Onahi]

I also think if you own something, you value it more, enjoy it more, care for it more.

We are losing those virtues quickly.

100% true. I look after all my bikes. They still look new after many years. And that is because of exactly what you say. PCP are loan bikes. and we all know how Loan & rental vehicles are used.

 

[KWS]

you would have thought a Scotsman , would do the numbers .

buy outright
bank loan or half loan , half cash .
PCP + balloon payment , hand back or sell.

3 different numbers , i'm sure .

me . i own all my bikes , only ever put 1 on a loan . ( the only one i ever brought new )

A Scotsman probably would, but I’m as much a Sassanach as the next Englishman I managed to sneak in from NE England during lockdown, when everyone was indoors and they haven’t asked me to leave yet

 

[BillWright]

An alternative plan is to do what I did with our current cars. For the Jag I had a £500 deposit contribution, and for the Golf it was something similar, plus two free services.

The PCP on both cars was all paid off within 48 hours. To my simple mind, we got all the benefits and none of the cost.

 

[Davey B]

£30k for a GSA...F### me I'm out of touch (Not a criticism of anyone paying £30k...just that I must live with my head in the sand....)

 

[Onahi]

£30k for a GSA...F### me I'm out of touch (Not a criticism of anyone paying £30k...just that I must live with my head in the sand....)

Yes. Absolutely shocking. But the only option i didn't tick was the adaptive ride height. If someone told me when i passed my bike test in 1986 that id be spending that much on a bike, I'd tell them bo@*#x

 

[boatman]

£30k for a GSA...F### me I'm out of touch (Not a criticism of anyone paying £30k...just that I must live with my head in the sand....)

These things - are away out of my budget range now ,,,
I have this ,, and while it ain’t a GSA @ nearly £30 K ,, it works for me ,, my bud bought a new one the same a few weeks ago for £8K ,,, it’s less than a third of the money , but having had 5 BMW 1200 ,s they ain’t less than of the bike .
People - all apportion different values to different things ( which is as it should be)

 

[Davey B]

I do like the Suzuki take on a heated seat....

 

[boatman]

I do like the Suzuki take on a heated seat....

Good innit “ The Wee Hurrie “ - - finest Chippie in Ayrshire ( Troon Harbour waiting for the ferry to Arran )

 

[boatman]

Sorry KWS ,, for hijackin yer thread

 

[littleade]

Cash everytime. My current GSA was £29,600. I wont do credit. PCP is allowing people to own things they really cant afford. The dealers don't care. But once you're on, its hard to get off it. When I bought this bike, There was a line of 11 bikes all sold. The salesman told me, out of the 11 bikes, mine was the only one bought cash. I just don't get it. Ill keep it after warranty. And if something goes wrong, ill get it fixed. Thats is cheaper than paying out a fortune every month, year after year.

£29,600.... fooooookin elllllllll. I'm with you and don't buy what I can't afford. The PCP mentality though just seems to be how much a month is it, without any thought as to how much extra it's costing them. I bet the vast majority of both new bikes and cars are on the tic with a PCP and in 3 years time they'll do the same again as they'll be on the PCP hamster wheel, not able to get off.

 

[WrexhamWrider]

Cash everytime. My current GSA was £29,600. I wont do credit. PCP is allowing people to own things they really cant afford. The dealers don't care. But once you're on, its hard to get off it. When I bought this bike, There was a line of 11 bikes all sold. The salesman told me, out of the 11 bikes, mine was the only one bought cash. I just don't get it. Ill keep it after warranty. And if something goes wrong, ill get it fixed. Thats is cheaper than paying out a fortune every month, year after year.

Like mortgages, you mean?

I haven't got a spare £22,000 lying about for my GS, but I've got £200/month spare. I could save that £200 for 9 years and buy that bike outright, but I figured I'd spend that 9 years enjoying riding around on a nice bike instead. Same as I'm doing living in that house I didn't have £100,000 to buy.

The modern world allows us povs have use of things that were previously the preserve of the well-heeled. I know that really winds some folk up, but life's too short to worry about shit like that.

 

[GrumpyNortherner]

Cash everytime. My current GSA was £29,600. I wont do credit. PCP is allowing people to own things they really cant afford. The dealers don't care. Bit once you're on, its hard to get off it. When I bought this bike, There was a line of 11 bikes all sold. The salesman told me, out of the 11 bikes, mone was the only one bought cash. I just don't get it. Ill keep it after warranty. And if something goes wrong, ill get it fixed. Thats is cheaper than paying out a fortune every month, year after year.

I consider each purchase on a case by case basis. What Interest APR were they offering at the time you did the deal?

Could be a viewed as bit naive slamming a not insignificant 29k in cash on a heavily depreciating asset if there's very low finance on offer and not doing the numbers. Money could be put to better use elsewhere, eg 1. Do a PCP or Finance, and 2. put the rest of your wedge in tax free investments eg 20k ISA allowance to offset other 'loses'.

Everyones circumstances are different, getting things on finance isn't a new thing (I bought my R1300GS for cash btw)

 

[Asturcon]

For what it's worth, here goes: My accountant had bought one the year before (2017) and his take on it was: I get to keep my money in my bank account and BMW don't have a bike.

I bought mine a year later and I put a high deposit in to keep the payments down. BMW GS1200 TE chocolate/grey

I looked after it even though it wasn't mine because A) I look after things, B) it's valued better at the end, and C) it's an annual ritual over the winter in a warm spacious garage to take it apart, clean it up and make sure nothing has come loose over its busiest season in the summer, which I happen to enjoy doing.

I paid the balloon payment and kept it after three years for a further 5 (another story). In all it cost me about €2,300 more than if I'd paid it outright. The total came to about €23,000. I sold it this year for €14,000 with 48,000 kms on the clock ,in a jiffy, and it was immaculate. When I bought it I almost stayed with Triumph (1200) which, although I liked my Tiger 800, I would have lost that difference in the first two years alone!

This year I have done the same with my GSA and because of the high deposit (because I know I'll probably keep it and they hold their value - always will do) I pay about the same every month as I did for my 1200 and I still have 12K in my bank account. Yes, it will cost me (about) the same in interest, so in the end it will be €29,000, but this one came with 3 years FC insurance, with a guaranteed full refund in the first two years, and four annual services (10,000kms) which I don't really do.

Now, I realise that €£2,500 is a lot of money to some, but if that's the case you're in the wrong market for a bike.

You could buy it outright, but why drain your account?

You could own it outright, but if it's going to go wrong it will do so in those first three years. Better to just be able to give it back. You will still have the option to own it

You could wait until you have all the money, but, as many of us of a certain age know only too well, life is full of surprises, and as long as you have a realistic possibility of comfortably keeping up with the payments, then, like so many people who deny themselves pleasures for years because they save, and save, and save, and save, and save, and bloody save for retirement....... well.......

And finally, of course, if you don't spend it now this, and every government to come will find ways to steal it from you anyway.

Buy it any way you want, but don't deny yourself the dwindling options to enjoy your wealth.

 

[WrexhamWrider]

I also think if you own something, you value it more, enjoy it more, care for it more.

We are losing those virtues quickly.

I can assure you that I both enjoy and care for all of the stuff I've got on tick like I made enough money to be able to afford to buy it out right. If I didn't, so what? You're a long time dead.

 

[Onahi]

I can assure you that I both enjoy and care for all of the stuff I've got on tick like I made enough money to be able to afford to buy it out right. If I didn't, so what? You're a long time dead.

That comment wasn't directed at you or anyone else specifically. Why do you need to "assure us" ?

Im hoping BMW don't bring out back-lit controls, because then id have to buy another one.

 

[AustinW]

What about mileage constraints on PCPs. I know people who have bought with very low mileage allowance who then have to manage how often and how far they ride them. For one guy I met this was pretty much one Euro trip and a half dozen or so Sunday rides.

 

[Onahi]

What about mileage constraints on PCPs. I know people who have bought with very low mileage allowance who then have to manage how often and how far they ride them. For one guy I met this was pretty much one Euro trip and a half dozen or so Sunday rides.

I often thought that. Annually I put 15K on my bike. That would cost a fortune when Chopping it in and a PCP deal? And imagine not being able to ride it for fear of going over the limit? Mental.

 

[SBD]

My thinking was that if at the end of the term I want to keep it, I can just settle the outstanding balance. If I don't, no sweat, I've lost what it would've depreciated anyway.

I don’t think this can be true.

The loss has to be greater than depreciation alone, otherwise the finance house would not have made a profit.

And we all know how they love to make a profit.

 

[SBD]

Like mortgages, you mean?

I haven't got a spare £22,000 lying about for my GS, but I've got £200/month spare. I could save that £200 for 9 years and buy that bike outright, but I figured I'd spend that 9 years enjoying riding around on a nice bike instead. Same as I'm doing living in that house I didn't have £100,000 to buy.

The modern world allows us povs have use of things that were previously the preserve of the well-heeled. I know that really winds some folk up, but life's too short to worry about shit like that.

The differences are that your house won’t depreciate, and may appreciate, and if you don’t buy a house, you do have to rent.

Your bike will depreciate, and you don’t have to have one.

If you spent the spare £200/month on your mortgage, and paid it off early, you might be much better off, and could afford the bike by paying less for it.