Cash or PCP ?

[FatAl]

Had i known what shit cards would be dealt on my approved used bike, I would have bought it on HP or a PCP deal

That way I wouldn't have lost more than 50% of the price of the bike after 3 years

You live, you learn

I'm surprised at that, I would have expected less depreciation from a BMW. When I traded my three year old Moto Guzzi V85tt for the V7 Sport the depreciation worked out at approx 36%. My V85tt had 8,000 mls on the clock.
When I traded my six year old Triumph T120 for the V85tt the figures were similar.

 

[Rasher]

Just arrived here myself, need a new(er) car, have money in a stocks ISA that would cover it, but historically doing ~10%, obviosuly investments can go down as well as up, however...

...In a dealer the other day and finance deal at 5.9% APR, bank loans similar, and I am loathed to withdraw savings to pay the car off directly as there is a fair chance the savings would outgrow a cheap loan.

PCP does really increase itnerest though, as you have a huge balance to pay interest on each month, and 5 year loan / HP to clear the cost entirely is only a few quid a month more and saves a fair chunk of interest.

Come back to the halfway house now, 50% deposit to hedge my bets on if investments crash, vs if the boom, and it gives a very affordable 4 year HP - which brings in additional consumer protections, and can sometimes help get a better deal on the vehicle or some extra warranty thrown in etc. - worth paying an extra 1-2% for IMHO, especially with 50% deposit as it is not a massive difference to have some extra protection against a lemon.

 

[The smudger]

You have answered you own question?

If its a long term bike, your keeping it, and you have cash, buy it. If you like a change every few years, like the latest model etc, PCH it, if you're not sure THAT bike is the one for you, and MAY be looking to get out due to uncertainties over the coming few years, PCP it.

Look carefully into PCP. It is a credit agreement so is under the scrutiny of the FCA. You can VT (Voluntarily Terminate) the agreement after a certain time.

But, if your first post is still correct, and you are buying to keep, then pay cash.

 

[Wrinkly]

Due to a physical condition I can no longer operate a manual clutch bike and thought my motorcycling days where coming to an end. I'd read that BMW had developed an automated clutch and toddled off to Grimsby to have a look. (The Africa twin is too tall for my stubby little legs)
Absolute revelation for me, but nearly collapsed when I was informed of the price. With the bits I wanted the bike was coming in at £23,089.00. A final figure came out at £22,297.44. I was being offered decent money for an R1200RS in P/EX and crap money for a 2014 V85TT euro 5+.
Now, being a serial bike swapper I've never even contemplated a PCP and have always paid upfront for my bikes...and cars.
The sales guy wasn't pushy at all but did inform me that a current PCP deal was at 3.9%.
Off I went and sat in a corner with pen and paper and a calculator. An hour later I was happy to do the deal.
Brand new R1300GS TE Triple black with ASA and a plethora of other goodies.
Contrary to some contributors beliefs I could have comfortably paid for the bike, but the thought of giving the 2 bikes and over 10K was sticking in my throat a bit.
I ended up giving them the R1200rs them taking a £1250 deposit and returning me £3750.00. I sold my V85 to a member of this parish and in total added £12000.00 into my bank account.
I negotiated a 4 year warranty and parts only for the first service. I took the PCP over 48 months.
With the interest from my savings account offset against the 3.9% I'm paying on the PCP I reckon I'm paying around £2 per week interest.
I can very comfortably pay the £237.41 payments per month and fortunately I don't miss it.
So, does a PCP work for me (even though I could have bought the bike outright?) Yes, I believe it does.
I picked the bike up on my 70th birthday and upto now it's been great and kept me on 2 wheels.
Will I keep it at the end of the 4 years. We'll have to see, maybe a new bike might be in order. That's if I'm still here.

 

[Davey B]

^ Good post. Shows that a PCP can be an effective 'tool'...especially if in 4 years, you're in the position of handing it back and walking away, your biking days done.

 

[Davey B]

Look carefully into PCP. It is a credit agreement so is under the scrutiny of the FCA. You can VT (Voluntarily Terminate) the agreement after a certain time.

Indeed...it is at the 50% of payments made point...so taking Wrinkly's post above...it is having paid £11148...so with a£1250 deposit and £238 pcm payments...at the 41-42 month point...3 1/2 yrs in to a 4 yr agreement.

 

[Wrinkly]

Indeed...it is at the 50% of payments made point...so taking Wrinkly's post above...it is having paid £11148...so with a£1250 deposit and £238 pcm payments...at the 41-42 month point...3 1/2 yrs in to a 4 yr agreement.

Or, I'm in the fortunate position just to be able to settle it. If the need arose.

 

[Ex-Call Centre Chimp]

Due to a physical condition I can no longer operate a manual clutch bike and thought my motorcycling days where coming to an end. I'd read that BMW had developed an automated clutch and toddled off to Grimsby to have a look. (The Africa twin is too tall for my stubby little legs)
Absolute revelation for me, but nearly collapsed when I was informed of the price. With the bits I wanted the bike was coming in at £23,089.00. A final figure came out at £22,297.44. I was being offered decent money for an R1200RS in P/EX and crap money for a 2014 V85TT euro 5+.
Now, being a serial bike swapper I've never even contemplated a PCP and have always paid upfront for my bikes...and cars.
The sales guy wasn't pushy at all but did inform me that a current PCP deal was at 3.9%.
Off I went and sat in a corner with pen and paper and a calculator. An hour later I was happy to do the deal.
Brand new R1300GS TE Triple black with ASA and a plethora of other goodies.
Contrary to some contributors beliefs I could have comfortably paid for the bike, but the thought of giving the 2 bikes and over 10K was sticking in my throat a bit.
I ended up giving them the R1200rs them taking a £1250 deposit and returning me £3750.00. I sold my V85 to a member of this parish and in total added £12000.00 into my bank account.
I negotiated a 4 year warranty and parts only for the first service. I took the PCP over 48 months.
With the interest from my savings account offset against the 3.9% I'm paying on the PCP I reckon I'm paying around £2 per week interest.
I can very comfortably pay the £237.41 payments per month and fortunately I don't miss it.
So, does a PCP work for me (even though I could have bought the bike outright?) Yes, I believe it does.
I picked the bike up on my 70th birthday and upto now it's been great and kept me on 2 wheels.
Will I keep it at the end of the 4 years. We'll have to see, maybe a new bike might be in order. That's if I'm still here.

Excellent. A nice little 'Good news' story in these days of continuous abject misery.

 

[Santa-2512]

I'm just about to take on my first PCP on Weds

I cant complain

no deposit

6 months

give it back / buy it / or get another

might even buy it, the balloon payment isn't that bad

 

[MotoRevive]

Using cash on a nearly new bike is absolutely the best way.

Let someone else pay the VAT and take the initial depreciation. Which is MASSIVE

A £25,000 R1300GS drop 30-40% of its value in 12 months.

If you buy it from a BMW dealer, you still get two years BMW warranty.

Even if you buy privately, you can still buy a BMW insured warranty.

 

[Rasher]

Looking at 2-4 year old cars right now, seeing top spec 3 year old motors that were £45k new in Franchised dealers for £25k, they must have at least a couple of grand profit in them so someone along the line has lost £8k per year for 3 years, even on a 0% Finance deal that is a lot of Money each month to have fuck all at the end....

....And I would like to thank them for their kind contribution to my next car.