Cash or PCP ?
- Thread starter KWS
- Start date
I didn't say it was. His opinion was that "you value it more, enjoy it more, care for it more" if you own something outright. I'm merely suggesting that, as somebody with assets which are fully paid for AND which are on the drip, I make no distinction; if it's got my name on the log book, I treat it like it's mine. I'm sure many folk with PCP bikes do. There are both spotless and abused ex-PCP bikes at most dealers.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.
Of course. I meant in broad terms. If I bought a new bike for cash at £22k, it'll be worth what, £10k after three years? A PCP agreed value might be more, less, or the same. It makes no odds to me if I haven't got £22k cash going spare; I'm just paying for the depreciation, and whatever margin there is on that. If I'm happy with that, what's the difference?
Okay, so if I overpay my mortgage by £200, when do I pay it off and how long will it take me after that to save £22k to buy my bike? I'll be missing out on a lot of riding.
If you're the type to be diligent with your finances, you can probably end up paying less for the £22k bike than somebody who isn't, who'll probably end up paying more. I don't think that's news to anybody; that's exactly how finance companies make their money.
We're all in different boats. Those with mountains of spare change will probably buy outright; those with no spare change probably won't be looking at £22k bikes; those in the middle, like me, will just look at our bank statements, work out if £200 a month will make any material difference to anything, and if it doesn't, get the nice bike and not worry about it.
I've got a nice bike, you've got a nice bike, the salesman gets his commission, Motorrad shift another unit, the finance company make a few quid: everyone's a winner! (Unless you're the type that get narked off with people with less money than you riding around on the same bike as you, obviously.)
I remember having a conversation with a guy many years ago. He commented that he could not afford to change his bikes as often as i did. ( it was quite often).
I said - How many fags do you smoke a day - he replied 20 s day.
So I said - that is why I can afford to change my bike - I do not waste my money on fags.
Each looks different to how they spend their money - what is wrong to one person is absolutely correct to another
I said - How many fags do you smoke a day - he replied 20 s day.
So I said - that is why I can afford to change my bike - I do not waste my money on fags.
Each looks different to how they spend their money - what is wrong to one person is absolutely correct to another
I’m not telling anyone what they should do with their hard earned.
I simply pointed out the difference between paying nasally for a bike on the never never, and buying a house on a mortgage.
If people want to keep finance company bosses in luxury, that’s not a problem for me.
I simply pointed out the difference between paying nasally for a bike on the never never, and buying a house on a mortgage.
If people want to keep finance company bosses in luxury, that’s not a problem for me.
I work in asset finance
I would never buy a car/bike on PCP
I would never buy a car/bike on PCP
I have been tempted by PCP on cars and bikes many times but when I sat down and worked out the overal cost of the deal over its length it has never stacked up. I could always get finance cheaper elsewhere, usually a personal loan, the last one was 2.9%. I have saved thousands doing this instead of PCP.
There we go - the correct answer
People do PCP because it’s easy in the dealership (sign here) and they’re lazy
PCP looks cheap each month - but add it up over the term and the interest is a lot
Bank loan or straight HP will always be better value
Purchase finance based on interest rate, not on laziness
but when NSI are currently offering 5.07 % on a 2yr bond and PCP is on 2.9% - then it is not looking too bad.
what is the current asset finance rate
BMW PCP is being subsidised by the manufacturer
2.9% is a good rate as commercially, rates are higher at present
If BMW would do 2.9% on normal HP, go for it
that was my thought
Remember though that when the 5.07% bond matures, you pay tax on the interest.
So, a higher rate tax payer will be lucky to see 3.0% return on his saving.
Not just because it's easier, for some people it's the only way they can buy the bike/car they want.
I'd like to change my car for something similar, I can comfortably afford the PCP monthly payments, the initial deposit and when the balloon payment is due I'll have an investment maturing that will cover that, insha'Allah.
Bank loan/H.P. payments are way above the P.C.P. amount and completely beyond my monthly fiscal capabilities.
I understand that whilst P.C.P. might not be the most economic way of buying a new vehicle it's the only way I could make the change and as you, me and many others often say, 'You're only here once, if you like it and you can afford it' then buy it.'.
What's really making me balk at going ahead with it is the 12.9/13.9% A.P.R. rate being charged by J.L.R. dealers for 2nd hand vehicles.
As someone else noted it would work out cheaper for me to buy a brand new J.L.R. vehicle than a 2 year old 2nd hand equivalent based on the interest rates being charged for the respective vehicles.
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I wouldn’t buy a JLR product for startersNot just because it's easier, for some people it's the only way they can buy the bike/car they want.
I'd like to change my car for something similar, I can comfortably afford the PCP monthly payments, the initial deposit and when the balloon payment is due I'll have an investment maturing that will cover that, insha'Allah.
Bank loan/H.P. payments are way above the P.C.P. amount and completely beyond my monthly fiscal capabilities.
I understand that whilst P.C.P. might not be the most economic way of buying a new vehicle it's the only way I could make the change and as you, me and many others often say, 'You're only here once, if you like it and you can afford it' then buy it.'.
What's really making me baulk at going ahead with it is the 12.9/13.9% A.P.R. rate being charged by J.L.R. dealers for 2nd hand vehicles.
As someone else noted it would work out cheaper for me to buy a brand new J.L.R. vehicle than a 2 year old 2nd hand equivalent based on the interest rates being charged for the respective vehicles.
Seen too many farmers with broken ones
If you any SUV then have a look at RAV4 or CRV
12.9% APR is outrageous
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Far canal, boy.
That’s eye watering. ‘Kin monkey business by the Coventry Clowns
just checked - it is 4.9% on GS and 3.9% on GSA
I used to say the same until the day i got that particular Honda deal, even the die hard no pcp brigade jumped ship.
The Norton another great deal for peanuts, I know guys that buy super cars and they’re all on pcp but they’re savvy and the cars only increase in value so at the end they have huge equity meaning what they get back is far greater then what they have paid out, plus there’s no CGT on the £100k profit some are making easily.
I don’t think you should just sign on the dotted line, do the maths no the market and Financial if you can make the deal work for you why not.
Always exceptions
I'm in a JLR vehicle that I've had for 7 years, the fact that I'm looking at another tells it's own story.
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