Is this a good deal on new GSA?

[SY_KO]

I have been looking at possibly going for a new GSA and chopping in my 07 GS, here's the deal...

My bike:
Has just over £7K loan left on it which will be covered by BMW to wipe the slate clean
its a 2007 model with 1200miles and BMWFSH inc the 12K one.
Just has the on board computer (no ABS etc)
Has BMW Vario Panniers and crashs bars

The GSA:
Will be a new 2011 model registered prob December
Will have Premium, Dynamic packs and panniers
Has to be 2012 magma red or white in colour (not sure about the sand coloured seat :/ )
£250 deposit
BMW select finance of 48months @ £270 and Guaranteed Final Value after 4yrs of £6.2K (p/x value will actually be higher or so Im told)

The monthly repayments are OK but anyone got experience of the finance option and if this is gerenally a good deal?

Appreciate any response.

 

[PW Cymru]

Ahhhhhh my eye's my eye's.

Be gone foul beast

 

[airhead wrangler]

You realize you posted this in the airheads section, right?

 

[David Nimrod]

Ahhhhhh my eye's my eye's.

Be gone foul beast

It'll be moved

 

[Robbo1200ADV]

So Total cost =£19160 ? Sounds expensive and not a lot of equity in it in 4 years time How much is the bike ? maybe a bank can beat that money is cheap to borrow, I used Sainsbury's for a car loan recently and they were great

 

[smudger]

I would consider doing a comparison with a bank loan it would work out less expensive in the long run & at the end of the term you own the bike out right.

 

[SY_KO]

So Total cost =£19160 ? Sounds expensive and not a lot of equity in it in 4 years time How much is the bike ? maybe a bank can beat that money is cheap to borrow, I used Sainsbury's for a car loan recently and they were great

When you put it like that it sounds bad... bike would cost £15K.

The way the dealer put it was that the idea with this finance is that after the 4 yrs you chop the GSA in again for p/x on another new bike and continue to pay the £xyz/month. This obviously means you never finally own the bike unless you pay the final lump sum but does mean a new bike every 3/4 yrs.

Apparently this is what a lot of people do with cars... anyone done it with a BMW bike?

(wrong forum )

 

[Reckless]

What they don't explain very well is that you are paying interest on the final payment throughout the period of the agreement! I agree with others - get a bank loan and you will save a packet.

 

[slydog]

sainsburys

yep sainsburys loans on line a tad over 6 percent ya cant go wrong

 

[Robbo1200ADV]

I did it with Harley's for a few years but the kept a lot of value . I'd be tempted to sell the 2007 bike privately ,then buy a used GSA with warranty ,oh feck it buy the new one you are only here for a short time!!

 

[RobGreaves]

By my reckoning £15k loan over 4 years with sainsburys would cost £355 per month - no final payment!
A saving of over £2k!

 

[smudger]

I don't consider it to be the wrong decision to use BMW finance its just you pay for the privilege if you compare the total cost using there package compared to using a bank loan you will find it costs an extra couple of thousand pounds over the term, its just very convenient.

 

[Lighty]

As others have said, these finance deals are always loaded on behalf of the Dealers, also if you default, they will take the bike away as it is never fully yours, if you get a loan, this is not a problem and you are free to sell the bike at any time as the finance is not usually secured on the bike itself.
This tends to mean you will need to be a home owner or more credit worthy to get the funds.
If it helps I just got my 2011 sand coloured bike with all that gear for £13700, so you are paying £1300 too much for it at least before you even start.

 

[GS TRV]

Sounds like you,re spending a fortune to go from one lardy old trail bag to another.
I'd hold onto my current bike and save a packet.

 

[Rushy]

Try contacting another BMW dealer and ask for a straight forward px deal and I bet you'd get closer to £8500 at least for your bike not the £7k you've been offered so you'd be quids in there for a start before you even look at thethe finance costs.

TBH I'm amazed you would be happy to pay £270 a month for a bike you wouldnt own and don't get a load of use out of. It works at out almost exactly £1 per mile assuming you cover 12k in the next 4 yrs like you have on your current bike.

Someone I know recently pxed their 25K 2008 GSA for a new one and the cost to change was around £3k so his bike had cost him just 12 pence per mile in depreciation over 3 yrs. Bargain.....

 

[Deleted account 251212001]

Try contacting another BMW dealer and ask for a straight forward px deal and I bet you'd get closer to £8500 at least for your bike not the £7k you've been offered so you'd be quids in there for a start before you even look at thethe finance costs.

TBH I'm amazed you would be happy to pay £270 a month for a bike you wouldnt own and don't get a load of use out of. It works at out almost exactly £1 per mile assuming you cover 12k in the next 4 yrs like you have on your current bike.

Someone I know recently pxed their 25K 2008 GSA for a new one and the cost to change was around £3k so his bike had cost him just 12 pence per mile in depreciation over 3 yrs. Bargain.....

£8500 px for a 2007 GS - doubtful if a main dealer is trading 2009 models with 6800 miles at £8450.
http://www.bmwbikes.co.uk/used-bikes/?detail=9858&model=R%201200%20GS

The balloon finance deal is a big no no though imo. I think i'd be weighing up whether they will extend the free pannier etc deal into next year.

 

[Loiq]

in my opinion never replace a loan with a loan

best way would be to discharge an agreement in full, then start again...

 

[Georgeeboi]

It's like any loan it all depends on the interest rate I've had pcp on cars and bikes but always look for the lower rate deals my car is a seat and on a 4% apr deal and the payments are low, if there's no incentive don't do it, the only thing good about those deals the payments are affordable but over The long term they cost more but if you can afford it go for it you only live once.

 

[GSmonkey]

When you put it like that it sounds bad...

...there is no other way to look at it. You're going to be paying nearly £20k for a bike!!!

in my opinion never replace a loan with a loan

best way would be to discharge an agreement in full, then start again...

...even better, save up, buy it cash.....its yours. Its only a bike - wouldn't want to borrow money for one.

 

[pinkytiff]

I have been looking at possibly going for a new GSA and chopping in my 07 GS, here's the deal...

My bike:
Has just over £7K loan left on it which will be covered by BMW to wipe the slate clean
its a 2007 model with 1200miles and BMWFSH inc the 12K one.
Just has the on board computer (no ABS etc)
Has BMW Vario Panniers and crashs bars

The GSA:
Will be a new 2011 model registered prob December
Will have Premium, Dynamic packs and panniers
Has to be 2012 magma red or white in colour (not sure about the sand coloured seat :/ )
£250 deposit
BMW select finance of 48months @ £270 and Guaranteed Final Value after 4yrs of £6.2K (p/x value will actually be higher or so Im told)

The monthly repayments are OK but anyone got experience of the finance option and if this is gerenally a good deal?

Appreciate any response.

Have sent you a pm. In a nutshell, "Select" isn't the cheapest way of buying a bike but it can be a very effective way to have sole use of one! Its designed to make bikes affordable for a given budget & mileage p.a. Its also best used by people that like to change every 2/3 years. Generally speaking, after the 3 year term, your bike will have equity over & above the GFMV and this equity can be used as the deposit for the next bike you buy.

Hope that makes sense?