PCP - Who's handing theirs back?

The 3yr GFV at 4000 miles per year when these crazy deals were on in Sept 2017 was around the £6430 mark then dropped to £5500 ish by spring 2018 remaining at about that level today. So it seems the decision to hand back or sell, from a purely financial perspective, may depend on any excess mileage and when you bought it, with the higher GFV resulting in a negative equity scenario. I really cannot see 3 yr old bikes in Sept 2020 being worth around £6500 trade for a dealer to then sell for a competitive price and make a reasonable profit, just won't work for them. They will offer significantly below the £6500 GFV or over allow it's value in part exchange, hence removing some of the discount on the new one that you could negotiate if you did not part exchange.

If however your GFV is nearly £1000 less you could make a slight profit or at least break even. Deciding to keep and buy means a well priced bike that you know well from new which in my view is worth paying for.

Having said all that, regardless of the GFV, your monthly payments will have been adjusted to tale account of the difference in the GFVs, deposit paid and mileage. At the end if the day you will own the bike for around £8500-9500 depending on the deal struck on purchase, the same figure as if you had bought it for cash due to the 0% interest rate. You may also have been able to make that cash work for you of buy another bike, happy days.
 
Couldn't wait until September 2020

So today, I paid off my Africa Twin PCP Balloon final payment and the remaining monthly payments EARLY. :beerjug:

I'M FREEEEEE, TO DO WHAT I WANT, ANY OLD TIMEEEEEEEE :D :aidan
 
GSite said:
The 3yr GFV at 4000 miles per year when these crazy deals were on in Sept 2017 was around the £6430 mark then dropped to £5500 ish by spring 2018 remaining at about that level today. So it seems the decision to hand back or sell, from a purely financial perspective, may depend on any excess mileage and when you bought it, with the higher GFV resulting in a negative equity scenario. I really cannot see 3 yr old bikes in Sept 2020 being worth around £6500 trade for a dealer to then sell for a competitive price and make a reasonable profit, just won't work for them. They will offer significantly below the £6500 GFV or over allow it's value in part exchange, hence removing some of the discount on the new one that you could negotiate if you did not part exchange.

If however your GFV is nearly £1000 less you could make a slight profit or at least break even. Deciding to keep and buy means a well priced bike that you know well from new which in my view is worth paying for.

Having said all that, regardless of the GFV, your monthly payments will have been adjusted to tale account of the difference in the GFVs, deposit paid and mileage. At the end if the day you will own the bike for around £8500-9500 depending on the deal struck on purchase, the same figure as if you had bought it for cash due to the 0% interest rate. You may also have been able to make that cash work for you of buy another bike, happy days.
Click to expand...

I've read this a few times and still struggle to get my head round what you're trying to get across.
 
Warlord said:
Couldn't wait until September 2020

So today, I paid off my Africa Twin PCP Balloon final payment and the remaining monthly payments EARLY. :beerjug:

I'M FREEEEEE, TO DO WHAT I WANT, ANY OLD TIMEEEEEEEE :D :aidan
Click to expand...

So you've paid it off I presume.

Out of interest, why didn't you just get a personal loan and pay it off quicker/possibly cheaper.
 
Cabby said:
So you've paid it off I presume.

Out of interest, why didn't you just get a personal loan and pay it off quicker/possibly cheaper.
Click to expand...

A bike with 25% off in the first place (irrelevent) and on 0% finance...how can he get it any cheaper ???
 
Davey B - sorry of I was not clear, just trying to put across some of the financial considerations in deciding if the bike should be returned at the end of the PCP term. With the lower GFV of recent times compared to the higher GFV in late 2017, it seems this could in fact make a difference to some folk, as could higher than average mileage over the term. If you plan to simply buy the bike at the end, it make no difference on the 0% PCP, you still end up paying the same amount overall. However, if you plan to part exchange it for another bike on PCP, the true trade value could well be less than the GFV leaving you in negative equity without any deposit left towards the new bike, which was originally one of the core intentions of PCP deals.
 
Davey B said:
A bike with 25% off in the first place (irrelevent) and on 0% finance...how can he get it any cheaper ???
Click to expand...

Yep, was a very good deal that was.....

Happy days :thumb2
 
I'm hoping that bike will last me a few years now :thumb2
 
People starting to get itchy feet, me included.. I have no idea if I'm gonna keep it, give it back, or attempt to sell it at the beginning of this biking season! I'd like to get off the pcp roller-coaster and buy myself a 'keeper', but as much as I think the AT is an excellent bike, I'm not sure if it's special enough as said keeper.. Is it a bit too heavy for the BHP when compared to the T7 and 799 ADV R.... 🤔
 
jojitsu said:
People starting to get itchy feet, me included.. I have no idea if I'm gonna keep it, give it back, or attempt to sell it at the beginning of this biking season! I'd like to get off the pcp roller-coaster and buy myself a 'keeper', but as much as I think the AT is an excellent bike, I'm not sure if it's special enough as said keeper.. Is it a bit too heavy for the BHP when compared to the T7 and 799 ADV R.... 🤔
Click to expand...

The ONLY time I've ever found a bike that's a keeper, is after I've modified it myself.... to my taste.

Now I own three keepers. All modded to the max
 
jojitsu - getting out now won't save you anything, will cost you overall the same as handing it back at the end of your PCP term if 0% interest.
So why not enjoy it for a bit longer over the summer with a better deal on it's replacement in the autumn.
Having said that, I am trying to sell mine now for reasons of garage space as I have bought yet another "keeper".
 
Warlord said:
Couldn't wait until September 2020

So today, I paid off my Africa Twin PCP Balloon final payment and the remaining monthly payments EARLY. :beerjug:

I'M FREEEEEE, TO DO WHAT I WANT, ANY OLD TIMEEEEEEEE :D :aidan
Click to expand...

:D was it burning a hole in ya pocket or summit ;)

im still in the undecided camp as not riding it (much in the last few months) does that to me , I start thinking of other bikes and what I might be missing out on. but normally as soon as I ride it again I love it again. im off to central Italy again for 3 weeks in June when it really is all the bike id ever need. only a v85tt has my eye atm or possibly a T7 but the colours are very dull.

if I was asked today id keep it :D
 
jojitsu said:
I'd like to get off the pcp roller-coaster and buy myself a 'keeper',
Click to expand...

I couldn't wait to get out of my pcp a few years back, hated it, never felt I owned the bike at any time, absolute noose round the neck. As for being a keeper, I've yet to find a bike I'd have as a keeper, although my tenere 660 was as close as I got, til I had to sell it to fund getting out of a pcp on a different bike. :blast
 
peepingtom said:
:D was it burning a hole in ya pocket or summit ;)
Click to expand...

Not really, just getting fed up of the voicemails and emails from the dealers with 'super-special-one-off' trade-in deal promotions. When I've no interest in selling it.

So thought I'd pay it off, get rid of the PCP Finance and tell them to bugger off
 
GSite said:
Davey B - sorry of I was not clear, just trying to put across some of the financial considerations in deciding if the bike should be returned at the end of the PCP term. With the lower GFV of recent times compared to the higher GFV in late 2017, it seems this could in fact make a difference to some folk, as could higher than average mileage over the term. If you plan to simply buy the bike at the end, it make no difference on the 0% PCP, you still end up paying the same amount overall. However, if you plan to part exchange it for another bike on PCP, the true trade value could well be less than the GFV leaving you in negative equity without any deposit left towards the new bike, which was originally one of the core intentions of PCP deals.
Click to expand...

Now that makes sense, thanks.
 
Warlord said:
Couldn't wait until September 2020

So today, I paid off my Africa Twin PCP Balloon final payment and the remaining monthly payments EARLY. :beerjug:

I'M FREEEEEE, TO DO WHAT I WANT, ANY OLD TIMEEEEEEEE :D :aidan
Click to expand...

As the PCP was 0% paying it off early doesn't make sense.
 
GSite said:
jojitsu - getting out now won't save you anything, will cost you overall the same as handing it back at the end of your PCP term if 0% interest.
So why not enjoy it for a bit longer over the summer with a better deal on it's replacement in the autumn.
Having said that, I am trying to sell mine now for reasons of garage space as I have bought yet another "keeper".
Click to expand...

Not really trying to save anything, just break even I suppose.. What you suggest is very likely to be what I end up doing, but if a great ktm 790 adv r deal pops up, I may well take it.. Selling early will make it easier for me as doble motorcycles is a trek for me, and even easier if I can sell it with all it's farkles still attached..

All that being said, I really like the bike when I get chance to use it!
 
MikeS said:
As the PCP was 0% paying it off early doesn't make sense.
Click to expand...

I suppose that unless you have shed loads of money in wonderful investment packages making 6%, it is neither here nor there. The £6.5 k needed to pay it off early could have made him what ? £30 interest in the next 6 mths? His end of term decision is well and truly made now...the bike's his
 
Davey B said:
I suppose that unless you have shed loads of money in wonderful investment packages making 6%, it is neither here nor there. The £6.5 k needed to pay it off early could have made him what ? £30 interest in the next 6 mths? His end of term decision is well and truly made now...the bike's his
Click to expand...

£30 is £30, with a 0% deal it's a crime to settle early, you got to squeeze every penny out of it. :D
 
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