Who's on PCP ??
- Thread starter Giles
- Start date
That would be true but its not £3k its nearly £10k in total interest ( its £3k more than HP ).
My line of work,the interest is all tax deductable, so the interest paid isn't as relevant, however I do virtually nil lending with balloons/PCP's as most farmers are too savvy to pay extra interest, on a balloon
Joe Public can't offset the extra interest against his tax on a bike/car..................more's the the pity
I've had a great idea! 
For those on PCP we should have a PCP Balloon Club!
It works like this.....
PCPers keep up their payments until the end but a month or two before the Balloon Payment is required a notification post goes up in the 'PCPers Thread' that says something like...
HELP!!!!...
Help me my only true and wonderful friends in this oh so cruel World!!!!
The collective then all chip in an amount, let's say 50 good one's, no...make that 1er, until the BP is reached.
The good thing about this is that everybody on PCP is in a win/win situation.
UKGSer really would have a chance to shine and put themselves firmly on the map!!
I would like you all to know that there is no benefit for me in the immediate future.... but the time will come!
For those on PCP we should have a PCP Balloon Club!
It works like this.....
PCPers keep up their payments until the end but a month or two before the Balloon Payment is required a notification post goes up in the 'PCPers Thread' that says something like...
HELP!!!!...
Help me my only true and wonderful friends in this oh so cruel World!!!!
The collective then all chip in an amount, let's say 50 good one's, no...make that 1er, until the BP is reached.
The good thing about this is that everybody on PCP is in a win/win situation.
UKGSer really would have a chance to shine and put themselves firmly on the map!!
I would like you all to know that there is no benefit for me in the immediate future.... but the time will come!
sven
Registered user
I'm 45 next month and I want to enjoy the nice things in life while I still can. They don't have pockets in coffins and I pay less than 10% of my salary on my PCP payment - it's not a worry
I'm 45 next month and I want to enjoy the nice things in life while I still can. They don't have pockets in coffins and I pay less than 10% of my salary on my PCP payment - it's not a worry
A refereshing attitude for a Yorkshireman, if I may say so, Steve.....
I thought with a PCP that you are renting the bike and it's not yours till you pay the balloon. You can only do so many miles a year and if you are handing it back you walk away with nothing? Also the dealer will expect to get his bike back in good condition? Anyone got any views or experience on this? JJH
Delboy777
Registered user
Ummmmmm, not sure you're right there. The annual milage and good condition is all to do with the guaranteed buy back / trade in price if you want to do the deal again. You can opt for high mileage a year, it just (slightly) lowers the value of the bike for your guaranteed deal in three years time (if you decide to do it..).
Not that either perhaps, as isn't there an excess mileage cost penalty, in addition to a reduced residual too
Fine if you're going to pay the £6-£7k balloon off with cash or a private Pre-Sale
Not sure how a trade in is affected - maybe they just reduce your price
If your trading the bike in, the salesman isnt going to be worried about the excess mileage aslong as its still reasonsble and the bikes in good nick, hes gonna be more concerned about gettin you onto a new bike, dont get me wrong if your bikes got telefone milage on it and youve totally neglected it for two/three years then yes they are gonna give you less, but even then it will probably still cover the balloon, you just wouldnt have so much to put down on your new bike
Sent from my GT-I9100 using Tapatalk
Sent from my GT-I9100 using Tapatalk
I've been on PCP for several years now. My bike is my main transport, it's ridden every day as well as taking me on several holidays each year, the relatively low monthly payment is a no brainier for me, it's about the same as renting one for the weekend!!
I take it out on the minimum annual mileage plan of less than 6k (even though I do 25-30k
). I never reach the end of the contract so mileage is irrelevant, I simply p/ex for a new one before the warranty runs out.
So nice shiny new bike every 2 years
Always in warranty
Low monthly payment
Generates lots of bikes for the 2nd hand market
What's not to like.
Only problem is getting off the train at the end
I'm considering keeping my latest GSA, I have this urge to do 100k on her and that's the sting in the tail with PCP, the balloon payment
Maybe I'll get me a new WC GSA next year
I take it out on the minimum annual mileage plan of less than 6k (even though I do 25-30k
). I never reach the end of the contract so mileage is irrelevant, I simply p/ex for a new one before the warranty runs out.So nice shiny new bike every 2 years
Always in warranty
Low monthly payment
Generates lots of bikes for the 2nd hand market
What's not to like.
Only problem is getting off the train at the end
I'm considering keeping my latest GSA, I have this urge to do 100k on her and that's the sting in the tail with PCP, the balloon paymentMaybe I'll get me a new WC GSA next year
thebuyer
Registered user
Well said.... Old fashion values ... Save your money, spend it... And enjoy and value the item you buy.... Simple....
Not the " I must have it now"....and then throw away when something shinier comes along society we live in today.....
Aha, bingo.....
That Balloon has given you lower monthly repayments BUT the pleasure has cost you an extra £3112 in interest on each and every one of those 48 monthly payments
Smoke and mirrors
If you told me that, while negotiating a deal - I'd have fallen off my chair, backwards!
48 x £3112.............
Al
To a certain extent I agree with you, but that doesn't make PCPs wrong. The problems occur when people completely over stretch themselves and get themselves into massive debt.
In my line of work I get to see daily how fragile a hold we have on life, I'd hate to save 14 years for my dream bike only to be struck down with MS the week after I buy it!
I agree with comments on manufacturers finding ways to shift tin - it's what they need to do to survive.
If it is good value is up to the individual, I had the cash for my bike, so I am buggered if I am gonna sign up for 7% interest when I can't get 0.5% on my savings!
It is certainly better than a Wonga Loan, but probably far more expensive (overall) than a well negotiated personal loan - but the payments will be higher and this final balloon payment is what gets people a low monthly rate......
..... and ensures a lot of people upgrade after 3 years, if you could not afford the extra monthly payments on a normal loan, your hardly likely to have £6k kicking around so you either need another 3 year loan to pay off the balloon (and how much would you have paid in total interest having financed your new GS for 6 years!) or you just carry on with your £xxx per month and get a new bike.
This keeps new sales rolling, and a good stock of recent low mileage used bikes coming in, great for the dealer, but as a punter you risk paying interest to the finance company for the rest of your biking life, and always taking the huge depreciation a new bike.....
But whatever way you look at it a bike costs you money, I like the odd beer and the residual value of that is sod all, same goes for holidays, each person knows what having that new bike is worth - and as long as you do your sums and understand what it is really costing you and all of the options then all is good.
Personally I would be keener to buy a 2-3 year old bike which would cost a similar amount over 3 years with no balloon if I did not have the cold hard cash to buy outright.
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!
If it is good value is up to the individual, I had the cash for my bike, so I am buggered if I am gonna sign up for 7% interest when I can't get 0.5% on my savings!
It is certainly better than a Wonga Loan, but probably far more expensive (overall) than a well negotiated personal loan - but the payments will be higher and this final balloon payment is what gets people a low monthly rate......
..... and ensures a lot of people upgrade after 3 years, if you could not afford the extra monthly payments on a normal loan, your hardly likely to have £6k kicking around so you either need another 3 year loan to pay off the balloon (and how much would you have paid in total interest having financed your new GS for 6 years!) or you just carry on with your £xxx per month and get a new bike.
This keeps new sales rolling, and a good stock of recent low mileage used bikes coming in, great for the dealer, but as a punter you risk paying interest to the finance company for the rest of your biking life, and always taking the huge depreciation a new bike.....
But whatever way you look at it a bike costs you money, I like the odd beer and the residual value of that is sod all, same goes for holidays, each person knows what having that new bike is worth - and as long as you do your sums and understand what it is really costing you and all of the options then all is good.
Personally I would be keener to buy a 2-3 year old bike which would cost a similar amount over 3 years with no balloon if I did not have the cold hard cash to buy outright.
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!
Rasher - bang on the money, sir
Al - you know what I meant
Al - you know what I meant
I believe it depends on the vehicle your renting on a pcp, one of my daughters who is a nurse and requires a reliable car for her work put down a small deposit of £250 on a new Fiesta then made monthly payments of £180 on a three year deal. Three months before the period was up the dealer concerned called and offered her a new replacement car with reduced monthly payments
She had built up an "equity" in the car because Fiesta's are consistent best sellers and secondhand values remain high, she was offered over £2k more for the car than the settlement figure by the dealer, that seems a pretty good deal to me.
She had built up an "equity" in the car because Fiesta's are consistent best sellers and secondhand values remain high, she was offered over £2k more for the car than the settlement figure by the dealer, that seems a pretty good deal to me.Deleted account 181015003
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Bought mine on PCP I had £8k cash plus a 1997 Blackbird to trade if needed I was looking at used some 1200 GSAs and I could have got a nice 09 single cam for this sort of money So started looking at new ones there was a deal £1000 of to take their finance negotiated another £800 off and a good trade in on the blackbird £2k paid the biggest deposit they would take and got the payment down to £100 a month.
Waited a few months until I got enough built up to settle the finance and paid it off by using their finance I save a fair wedge by the discount and finance contribution been a lot less than the interest I paid
Even if you have the cash in your pocket they will do a better deal if you take the finance then just pay it off as soon as you can
Waited a few months until I got enough built up to settle the finance and paid it off by using their finance I save a fair wedge by the discount and finance contribution been a lot less than the interest I paid
Even if you have the cash in your pocket they will do a better deal if you take the finance then just pay it off as soon as you can
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