Taking finance on a new bike and paying it off - worth it?

If you cancel( withdraw) the agreement within the 14 day period you pay back the amount borrowed and £2.70 per day from the time you signed until the time you pay is what I've got on my agreement. It may depend on how much you have borrowed of course. I'm off to cancel tomorrow after buying a new bike on Friday.
 
I bought a used car a couple of weeks from a franchised dealer. I had intended to pay cash, but taking the minimum on HP (£2K) over a year gave me 2 years manufacturer's warranty with RAC and 2 services. Interest cost will be about £78.
 
Had the bike just over 5 months now, done 5k miles (including a fantastic trip to the Alps) and no sign of BMW trying to get their deposit contribution back. Definitely worth doing!
 
Hi, under the current legislation you may withdraw from your finance agreement within 14 days, they are entitled to charge you interest but no penalty. This is NOT the same as distance selling where you can cancel the whole agreement and return the vehicle, read your pre contract information which you should have got up front before you signed the agreement, that will detail the information, if you didn’t get this, complain strongly, dealers are not always up to scratch, as always talk to the finance company they are there to help, finance companies are not all baddies, they have to work withinthe law and the FCA guidelines. BMW Finance in my experience are quite good (I worked in the asset finance industry for many years and put a lot of this stuff in)
 
darthdicky said:
Had the bike just over 5 months now, done 5k miles (including a fantastic trip to the Alps) and no sign of BMW trying to get their deposit contribution back. Definitely worth doing!
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Excellent, a little bit of effort and £470 up. Well worth it.
 
darthdicky said:
Buying a new bike (S1000XR, so almost a GS!) and have the option of taking BMW finance and getting a £500 deposit contribution thrown in. Simple me thinks, great, free money! However, I don't think BMW Financial Services are that daft. I'm weighing up whether this could be a thrift investment in the form of a short-term financing strategy. If I ring them up after a few weeks or months to settle in full, will they increase the remaining amount owed to cover that, or am I still likely to be in a better position overall?

Two dealers I've spoken to say it happens a lot and isn't an issue, but I'm having second thoughts. Have the money saved up for it so don't need the finance, and don't intend to pay the extra £1400 (minus £500) over the 2 year term for the pleasure of having it as I can't get 7.9% interest anywhere else.

Has anyone else done this?

Rich
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I’d definitely check the early settlement terms before going ahead. The £500 contribution sounds appealing, but make sure there aren’t any settlement fees or other conditions that eat into the saving. Ask BMW Financial Services for an example settlement figure after a month or two and get it in writing. If the numbers work out and you can keep the £500 contribution, it could be worthwhile, but I wouldn’t rely on the dealer’s word alone.
 
Does this work with S/H vehicles as well if taking the dealers finance .
 
rovert57 said:
Does this work with S/H vehicles as well if taking the dealers finance .
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Just like a new bike the dealer will most likely be acting as an agent for the finance company and pribably getting commission. If so you have a 14 day period where you can settle the finance.

From Google ;)


You have a legal right to a 14-day cooling-off period on a Personal Contract Purchase (PCP) agreement in the UK under the Consumer Credit Act 1974. [1, 2]

Key Details of the PCP Cooling-Off Period
  • Duration: Exactly 14 calendar days. [1]
  • Start Date: The countdown begins either the day after you sign the agreement or the day you receive a copy of the contract, whichever is later. [1, 2]
  • No Penalty: You can withdraw from the finance agreement without giving a reason and without facing penalty or early termination fees. [1, 2]
    • Costs Owed: While there are no cancellation fees, you must repay the credit provided plus any interest that accrued during the brief time the account was active. [1, 2]
    • How to Cancel: You must notify the finance lender in writing (via email or letter) within the 14-day window. [1, 2]
    • Car Purchase vs. Finance: Cancelling the finance agreement does not automatically cancel the separate purchase of the car; you will need to return the vehicle or arrange an alternative method to pay the dealer. [1, 2]

If you've already passed the 14-day window, let me know if you want to explore Voluntary Termination (VT) or early settlement options.
 
At the time it was an incentive that they were offering with an extra £500 off the bike price to take their finance. I'm not sure whether it's offered on secondhand ones but just ask them. The dealer was quite open with it and said it's my choice whether I pay it off promptly or keep the finance. I think they get their payment from the finance company after a few months so they were keen for me to keep it that long, but I chose not to.
 
Nippy Normans supply Touratech, Wunderlich, Desert Fox and many other makes of accessories.
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