Who's on PCP ??

I reckon the success of the PCP process is nicely put. I've even had a dealer explained it all to me and read the paperwork. Believe me, I get it. They also have their margins within which to offer a bit of discount, accessories, clothing, satnav or top case and the £1000 (finance linked) discount came from BMW GB. What I find worrying is the way you are allowed to believe you "own" the bike. At best, the logbook only shows you're the registered keeper. Maybe I completely mis-read the paperwork, I'm happy to be wrong.

It's just not my thing I suppose.

I'd not considered waking one day up with MS, a sobering thought. Do your PCP payments include some sort of payment protection policy? Would you be covered? How discretely would the finance company collect the bike and outstanding finance? Would it all be settled?

I also know you can get a bit better than .5% on your savings.


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Keyframe said:
I'd not considered waking one day up with MS, a sobering thought. Do your PCP payments include some sort of payment protection policy? Would you be covered? How discretely would the finance company collect the bike and outstanding finance? Would it all be settled?
Click to expand...

My point here was that you never know what is round the corner, ill health, accident etc, etc. I know this works both ways but for me, I work hard and when not at work I get my main enjoyment from biking. I'm reasonably well paid but don't have enough cash in the bank to buy a new bike so PCP gives me that option. I'm not daft, there's a reason manufactures do it and that's to make money and tie you in to their brand. I'm sure many of those on here advocating saving up and buying only what you can pay for in cash probably spend more every year on fags and booze than I do on interest payments. We all have our own set of priorities and as long as you are sensible PCP is a good option for some. Without it there wouldn't be so many nice, low mileage GS's on the 2nd hand market for tossers to buy
 
personally I think a personal loan over a longer term is a better bet. for example a 5 year loan for 10k example below.

Monthly repayment£186.89 Total repayable£11,213.40 Representative APR4.7%

imo £250 a year in interest aint too bad, and at end of year 3 if you want a change you would owe about £4500 settlement (that will be well down on most GMFVs) ....so youd be well infront. the interest saved over a non incentivised bmw pcp would buy an akrapovic can and all sorts of goodies.
 
The only way to get the best from a PCP is to continue to roll it over.
I do it one of our cars,which over the last four changes of vehicles only two were from the same manufacturer,So there is no tie in with a particular 'Brand'.
Also to get the best from the deal the cars were changed when approx two years old ,just prior to needing new tyres and a new years tax.Changing at this particular time covered 3 months payments.
But it would seem madness to enter a PCP with the intention of making the final Balloon payment as this would add up to more than a conventional loan.

So if you want a new bike regularly and intend to continue along this line.Enter PCP change before the term is up and continue the rollover.
At least you know what is going out and if circumstances change for the worst,Ok you lose your initial deposit but just hand the bike/car back and walk away,no drama.
 
Rasher said:
.

Just don't leave savings in an ISA at 0.5% and then take a 7% loan out as often sales folk will try to get you on finance for all the benefits (and extra commission) they make from it, 7% on £10k over 3 years is about £2k extra in their pocket!
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Shop around loans at present are under 6% and also if you shop around for a good ISA you can get nearer 2%.

For me its much harder to replace saved money than it is to pay a reasonable loan so a loan is better for me on a bike than splashing my life savings.
 
It's always been beyond me why people go off how much it costs them a month?? Surely you look at the total cost you pay back??

Personally it sticks in my throat paying anything over the new price. I've always found the best way to finance is to

1) Don't part-ex, sell you bike private as 9 times out of 10 you'll get more private
2) Get the lowest rate APR personal loan as possible via moneysupermarket or similar
3) Take your borrowing over the least time you can afford even if its a bit of a stretch you'll adapt your expenditure to suit
4) Using the above loan negotiate the biggest cash discount possible by contacting numerous dealers

This PCP thing ends up costing a fortune if you ultimately buy the bike, I personally would never consider one
 
My attitude is "your a long time dead" enjoy your bike. In the end we are all paying for the pleasure it gives us. Get on with it ffs.

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Delboy777 said:
My attitude is "your a long time dead" enjoy your bike. In the end we are all paying for the pleasure it gives us. Get on with it ffs.

Sent from my GT-I9305 using Tapatalk
Click to expand...

Keep taking the happy pills, drinking the BMW Kool-Aid

Shop around and take a cheaper Peronal Loan instead, but more legwork..........but you could achieve the same results and save some brass, into the bargain
 
Delboy777 said:
Aye nae bother. I will dae that.

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You have to pay the interest one way or another if you are borrowing money - I prefer to own the bike outright from day one.

P.S. are there mileage limits with PCPs?
 
Yes but they only count if you trade up after the pcp is finished. Wont matter if you keep the bike. Someone tell me where you could buy a 3 year old gsa for 6k ? That is the balloon payment at the end, for me anyway. Its already in the bank in an isa so no further loans at the end.

Sent from my GT-I9305 using Tapatalk
 
Delboy777 said:
Yes but they only count if you trade up after the pcp is finished. Wont matter if you keep the bike. Someone tell me where you could buy a 3 year old gsa for 6k ? That is the balloon payment at the end, for me anyway. Its already in the bank in an isa so no further loans at the end.

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Click to expand...

So if your balloon payment is 6K, how much has your GSA cost you in total when you add in what you P/ex'd or paid for as a deposit plus the monthly payments?
 
No one has mentioned the extra cost of Gap insurance if your going down the pcp route, your bike is worth less than what you have committed too .

I paid for my bike, £129 a month looked cheap, until I realised there was £1900 of finance charges and £350 for gap insurance
 
ossa eck said:
No one has mentioned the extra cost of Gap insurance if your going down the pcp route, your bike is worth less than what you have committed too .

I paid for my bike, £129 a month looked cheap, until I realised there was £1900 of finance charges and £350 for gap insurance
Click to expand...

Good point.......well made:thumby:
 
whats this gap insurance? I thought there was a minimum GUARANTEED future value. whats all this about? Im i stupid or something? Pay insurance for something thats already guaranteed by you. I thought this was all built in to your payments. Someone is on a good fiddle here. JJH
 
JJH said:
whats this gap insurance? I thought there was a minimum GUARANTEED future value. whats all this about? Im i stupid or something? Pay insurance for something thats already guaranteed by you. I thought this was all built in to your payments. Someone is on a good fiddle here. JJH
Click to expand...

If the bike is stolen or you crash it and write it off, your insurance company will only pay market value at the time. Gap insurance will cover the difference between the market value and the new price of the bike or "return to invoice" as it's commonly known.
 
Google GAP insurance, you can get identical cover by the same firms dealers use for about £180...so a nice saving there.
 
Nippy Normans supply Touratech, Wunderlich, Desert Fox and many other makes of accessories.
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