which route to go down ??

[robjet]

so I,ve decided to buy my first gs some time soon ( just need to talk the mrs around )

I,m not lucky enough to have that kind of cash ,so need to go down the finance route . The dealer I went to was pushing something call PCP as an option , I understand that with this I will never own the bike ( unless i pay the final fee at the end of the three years ) etc

has anyone gone down this route ? is it a good idea ?

any andvise would be greatfully received . Rob

 

[Keitht]

Hi Rob,

Finance all depends on how much cash you want to put in and how much you want to commit to monthly. Your options for buying are pretty much:

1 - Buy it outright with your own cash
2 - Buy it outright with a combination of your own cash and a personal loan
3 - Buy it on HP provided by the dealer or another company
4 - Buy it on PCP provided by the dealer or another company

1 means you pay no interest, great if you have the cash to splash
2 means whoever loans you the money has no title on the bike, probably get a decent interest rate and you own the bike / can do what you like and sell it when you like as long as you keep up the loan payments
3 might be a better interest rate than 2 as whoever loans you the money has some security (the bike), but probably not much in it. You pay off the whole amount of money over the term (3 years normally) and after that the bikes yours, all yours.
4 will be the highest interest rate as the company that loans you the money is taking a (small) risk by giving you a guaranteed future value, and you'll pay more interest overall because you're paying back a smaller portion of the capital (because there's a big lump to pay at the end). Advantage of this approach is that it keeps the monthly payments down, disadvantage is you still have all that cash owing at the end of the deal.

Ultimately it depends on what your personal circumstances are. PCP is not a bad option but is the most expensive overall.