Justify a 13K bike

[Blackal]

Only you will know if you can afford it and how it fits into your financial priorities. Don't worry about what others think, it's your money, spend it however you want to

That could be a line from a "Loans4You" advert - and epitomises the whole credit boom.

Al

 

[Nutty]

If you are buying it as a weekend toy and use the car to commute to work, don't do it. If you are buying it as an only mode of transport, and need the peace of mind of the warranty, and knowing that the bike will get you to time critical meetings and appointments, then go for it.

With our unreliable weather, I wouldnt want to be sat in the house on a wet and windy weekend knowing that I am paying finance on something that I'm not using, so personally, I wouldn't want finance on toys.

It's your call at the end of the day.

 

[harry]

Your choice,personally I never buy new and never buy anything unless I have the cash to pay for it.

Did you pay cash for your house?

 

[stevedude]

After nearly 10 years without a bike, I decided I wanted another and almost went down this line. In that 10 years I've done alright for myself and had no problems paying for it under the PCP. After a test ride of a new RT and GS I was on the cusp of getting a new GS Triple Black on PCP, which looked superb on paper with a decent deposit.

But, after years of courier work, doing the knowledge & commuting on a bike I only want one for pleasure and then most likely only in dry weather. I came home, looked at the total costs and really couldn't justify the end result of a seemingly good deal.... bottom line pay a baloon payment, start again or walk away.

In the end, with the assistance of some Summer overtime I got myself on a fairly tidy '05 GS for less that the baloon payment I'd have had and got myself some new riding gear. The bike doesn't ride that much differently from the brand new one (For someone who has returned after a lay off) and I am as happy as Larry without the worry of what I need to do in three years. I guess by that time, by 05 GS will still be worth a few grand so I've lost less than 2K on what I paid.... I can keep it, sell it or trade it but it's mine to do what I want.

I am not tight by any stretch. I get a company lease car allowance every three years that would put me in a Mondeo but I add the extra and go for a BMW 5 series, that costs me out of my own pocket but I'm happy to pay that for the pleasure of the car because I use that on a daily basis. I just couldn't agree the same logic for a bike.

Good luck whatever you decide.

 

[illustratedman]

If you want it buy it but i'd look at doing it on a loan, black horse are cheap, came out about £20 quid different to a pcp when i bought my super ten, i can pay it back early if i want and the bike is mine once the term is up with no lump sum to pay.

 

[sagalout]

I think it depends a lot on the rest of your finances.

Do you buy everything on credit and this is just increasing the overall monthly payments and pushing you towards the cusp of debt problems? Could you manage for 3 or 4 months if you lost your job?

If neither of the above, and you're generally careful with money and this is just a treat then there's no harm in it, as long as you're aware of the total amount paid etc.

I actually did the same with my Rallye, even though I could actually have paid for it out of savings. The dealer contribution offset a lot of the interest and allows me to keep a large chunk of cash in the bank. Financially I would still have been better buying outright, and even better buying 2nd hand, but this is going to be my main means of transport for the next 3 - 5 years, and is the only debt I have (excluding mortgage).....and I just really wanted a shiny brand new bike for once

I have no interest in the w/c version of the bike and wanted a well specced late version of the oil cooled bike that I could keep for a good few years so it was a good fit for me personally.

 

[Deleted account 251212001]

An option could be to take the bmw deal, get the deposit contribution, settle it after a week and then get a standard loan, there are some great interest rates at the moment, for example sainsbury bank 10k is 193 per month over 60 months 5.8 percent apr, costing £1600 in interest, bmw want nearly £2200 in interest over three years on the pcp albeit offset by the £800.

the smart money is on nearly new and a bank loan (not bmw finance) in my opinion.

Your money, your repayments, your choice.

 

[Pablo1]

£800 BMW FINANCE OFFER

I'm assuming thats why you are looking at BMW finance against a new Adv.

UNLESS YOUR GOING TO PAY THE FINANCE OFF WITHIN A FEW WEEKS (and you can with no penalty and still have saved £800) DONT DO IT.

You could pay the finance off with a personal loan as above and that would make a good deal more sense.

Personally I always look for ex demo bikes with small mileage but they can be hard to find, I bought GS Adv in July , 12 plate, 1000 miles, list price new £14,500, for £12,500 , managed to get them to throw in an ally top box fitted and free delivery as part of the deal.

Feck it, its my hobby, worked my balls off all my life and you cant take it with you

 

[Shaunie]

Thanks guys.

A great selection of replies highlighting the pros and cons and different points of view.

I don't have any other debt at the moment apart from my mortgage but will probably need to change cars at some point over the next 3-4 years.

So although it's very affordable, it's a real extravagance.

I think I'll procrastinate a little longer, until the deposit contribution offer expires, then it'll be more expensive and less appealling.

 

[sven]

If you are buying it as a weekend toy and use the car to commute to work, don't do it. If you are buying it as an only mode of transport, and need the peace of mind of the warranty, and knowing that the bike will get you to time critical meetings and appointments, then go for it.

With our unreliable weather, I wouldnt want to be sat in the house on a wet and windy weekend knowing that I am paying finance on something that I'm not using, so personally, I wouldn't want finance on toys.

I sometimes have this dilemma as my bike used to be my only form of transport, but I passed my car test in 2008 and now have a company car.

However, I got good deals on my last three bikes, the RT being on PCP, I like new shiny bikes, I've got enough disposable income to comfortably afford the payments, I get a free £30k car every four years (well, £90/month in tax) and they don't have pockets in coffins

 

[k80matey]

and they don't have pockets in coffins

They do - the ones the tax man can get his hands into.

 

[kennyboy]

i paid 13k for a new gs at begining of year love the bike ,but hope your modest income can handle bmw rip off serviceing charges to keep up warrantee

 

[jasperthehorse]

Routes to purchase

I work in the trade, Sales manager with Land Rover and this is an interesting little thread indeed.

I always used to buy my bikes around and up to £5k, keep a year and change it, lose a grand or so.

As I get older and realise that I work very hard and seem to spend so much of my precious time at work earning money I took the plunge this year and went PCP on a new bike, a Triumph Daytona 675. Its really nice having a new bike, I hasten to add that our cars are on PCP.

I will look to change next year for a GS or 1200 Explorer and it will be on a PCP.

Way I look at it is that I much prefer the peace of mind that a new machine offers and Im quite willing to pay a reasonable amount per month to effectively rent the bike. I always advise prospective customers at work that you must get into the correct place mentally to go into a PCP.
Lowish deposit that you will probably never get back, a monthly payment that is modest for the purchase price of the car/bike and you will probably want to chop it in 2 or 3 years time for a new one with another smallish deposit and the payment around the same.

Heres a real example. We have just changed my wifes mini.

in 2009 we put in £3000 deposit and had a payment of £189 a month.
We have now just traded in the car with a positive equity of £550. We topped this up to a £1000 and upgraded the car to the new roadster which lists at £3500 more that the original car. Our payment has went to £279.

For me the benefits of a new motor with the peace of mind and controlled costs of a PCP outweigh the payments for a car you wont own.

PCP is a safe way to buy as you will never be in negative equity as you always have a hand back option. I guess its all personal choice. Its quite important what you actually buy on the PCP as well.

GS models are great news on the PCP's due to the extremely high residual values. Higher residuals equals lower monthlys so look for desirable models ideally with a supported rate of interest from the manufacturer.

I was watching a BMW offer this summer gone on the GS and it was like £1500 deposit and circa £150 a month. Now to me thats a no brainer. When I retire and my income has decreased massively is the day I will buy a car and bike to keep. So long as Im working and have money coming in I will take the new car / bike option every couple of years.

Mind I do own my 2004 Yamaha TTR 250 green laner but I only paid £1400 for it. Like wise we own our PCX scooter which was £2500 new.
I think when the numbers start getting north of £7-8k then its time to look at alternative routes to purchase.

Hope this helps

 

[wishbone]

I've had beemers for years now. R1100S, R1100GS, F650GS, R1150GS and R1200GS. All 2nd hand and the most expensive was £7500, paid for out of my redundancy money. I've had my eye on the dealer deposit contribution offer all year now and managed extremely well to to procrastinate to the nth degree. Now I've actually had a test ride on a 12GS ADV and have been offered what I consider to be an extremely good deal on a PCP plan. I've never had PCP before but it seems to be the way things are these days on cars as well as bikes. The sticking point is that I just can't get my head around owning a £13K bike. I'm a modest man, with a modest income, with a modest house and a modest car (04 Octavia tdi). I don't want to be seen as a flash bugger with an expensive toy but the finance is just so affordable it doesn't seem worth looking at an older model with a rake of miles. Anyone else had the same discomfort regarding justifying an expensive purchase that they had always considered out of their price range?

I'm suffering the same dilemma at the moment

 

[david a hall]

Wish I understood this thread. Whats pcp? why is one good? are they only good if you keep having a new bike? If the deeler pays the deposit do you pay in the end?
I have owed the same bike since 2006, cant see me selling it as it still starts.
So if you got a 13000 bike on a pcp how much would it cost?

 

[peepingtom]

i paid 13k for a new gs at begining of year love the bike ,but hope your modest income can handle bmw rip off serviceing charges to keep up warrantee

i dont think you have to use a main dealer to keep it warrantee ?

if you can afford the payments then get it , if you cant afford then still get it

or do what i do and just buy with cash youve saved .

i dont like the idea of pcp myself but its a way of owning a new bike for little outlay........but we all know that

 

[GS TRV]

I just follow my mums advice of if you don't have the money already then you can't afford it.

 

[cyril]

A point worth mentioning. If you spend 13k on a kitchen etc. The money is gone for good second hand worth £0
Second hand GS always worth something so you have never parted with 13k
forever some will be back in your pocket .
Treat yourself if you can afford it this life aint a practice run .

 

[jasperthehorse]

whats a pcp

Wish I understood this thread. Whats pcp? why is one good? are they only good if you keep having a new bike? If the deeler pays the deposit do you pay in the end?
I have owed the same bike since 2006, cant see me selling it as it still starts.
So if you got a 13000 bike on a pcp how much would it cost?

Personal contract purchase. Deposit contributions and attractive APR normally go hand in hand with models that the manufacturer wants to move on.
If you start out on day 1 and have the slightest inkling that you may want to own the vehicle then a pcp is not the way to go.
Its dead simple. Do you want a brand new bike every 3 years and happy to pay £1?? A month then go pcp.

 

[david a hall]

Personal contract purchase. Deposit contributions and attractive APR normally go hand in hand with models that the manufacturer wants to move on.
If you start out on day 1 and have the slightest inkling that you may want to own the vehicle then a pcp is not the way to go.
Its dead simple. Do you want a brand new bike every 3 years and happy to pay £1?? A month then go pcp.

Thank you