End of lease question

markymark · Nov 15, 2020

As title really, as a lot of guys PCP their bikes nowadays do you always trade in before the deal ends or just let the PCP run its course & hand it back ?

When you hand it back, is it to the supplying dealer or does the finance company come & collect the bike from your home ?

Just curious as to what happens :thumby:

Wobble · Nov 16, 2020

Up until now, I’ve been one of those pay as you go wallers, but with each bike the corrosion just seems to get worse, my current 2018 is due a right cylinder and a final drive replacement and it was around 18 months old before the started to appear, that and the fact I gave to ride two hours to get to a dealer that isn’t a total knob.
I think I’m going to ride this one out till the end and see what they want to do about just picking it up

crotchrocket · Nov 17, 2020

markymark said:
As title really, as a lot of guys PCP their bikes nowadays do you always trade in before the deal ends or just let the PCP run its course & hand it back ?

When you hand it back, is it to the supplying dealer or does the finance company come & collect the bike from your home ?

Just curious as to what happens

My recent honda was collected at a cost of £108 and taken to auction.

JohnnyBoxer · Nov 17, 2020

crotchrocket said:
My recent honda was collected at a cost of £108 and taken to auction.

Very reasonable ....£108 to uplift

Saves you a lot of hassle, mithering with a dealer

Big Si · Nov 17, 2020

Wobble said:
Up until now, I’ve been one of those pay as you go wallers, but with each bike the corrosion just seems to get worse, my current 2018 is due a right cylinder and a final drive replacement and it was around 18 months old before the started to appear, that and the fact I gave to ride two hours to get to a dealer that isn’t a total knob.
I think I’m going to ride this one out till the end and see what they want to do about just picking it up

Wallahs

adm1 · Nov 17, 2020

JohnnyBoxer said:
Very reasonable ....£108 to uplift

Saves you a lot of hassle, mithering with a dealer

But it doesn't normally cost anything for a car at the end of lease. They just come, give it an inspection and drive off to the auction house.

twizzle · Nov 17, 2020

adm1 said:
But it doesn't normally cost anything for a car at the end of lease. They just come, give it an inspection and drive off to the auction house.

It varies by Manufacturer - My KTM was, at the end of the lease supposed to be taken to a site near Croydon by me for handover or could be collected at a small cost - that was KTM Finance ( Santander at the time) others collect and as you say straight to Auction.

If you are buying new its worth getting a trade in figure and weighing up your options - if the final value is less then market value and you want to offload it may be worth selling privately and settling the PCP - Phone the finance co hand over to buyer they settle with debit card - done simples

brummy bloke · Nov 21, 2020

I had my previous gste on a pcp. at the end of the term i bought the bike off bmw finance over the phone and kept it for another couple of years as it was a good one with no corrosion issues. I px'd it for another one when it suited me and got a good price for it

Matty589 · Nov 22, 2020

Finance is with BMW Financial Services. They own the bike and give the dealer a kickback for selling the bike on finance, so at the end, they will collect, not the dealer (unless they’ve got a special arrangement with the dealer to flog bikes). That’s why they tend to go to auction - finance co wants their money/profit ASAP. Thus the whole PCP thing comes undone when the market is saturated with 2-3 year old vehicles and the going price starts to drop.

JohnnyBoxer · Nov 22, 2020

Matty589 said:
Finance is with BMW Financial Services. They own the bike and give the dealer a kickback for selling the bike on finance, so at the end, they will collect, not the dealer (unless they’ve got a special arrangement with the dealer to flog bikes). That’s why they tend to go to auction - finance co wants their money/profit ASAP. Thus the whole PCP thing comes undone when the market is saturated with 2-3 year old vehicles and the going price starts to drop.

I don’t think the used bike market has collapsed

If anything, it’s strengthened

Matty589 · Nov 23, 2020

JohnnyBoxer said:
I don’t think the used bike market has collapsed

If anything, it’s strengthened

“And the going price starts to drop”. Did you read that? I didn’t say it had. But if we do head into a severe recession (and what if interest rates rocket like in 2008-10 and/or income tax shoots up to 25/50% to start paying off the cost of COVID etc), then although there will still be demand for used vehicles, the amount in the market will increase a lot as people get rid of or default. TBH I’m thinking more of the car market in this instance but what if each dealer has 25 or 30 used GSes? They’ve not always been as in demand, as I know when I’ve tried to shift one in the past.

Neil12GS · Nov 23, 2020

Have you asked them for a settlement figure to keep the bike.?
Then either keep it or sell it on, depending on the figure they offer..

markymark · Nov 24, 2020

Thanks for all the comments guys

yofi · Nov 26, 2020

Bit of a tangent here, but if there is one thing that is nailed on for the next 5 years, and probably well beyond that, is that IRs will be on the floor. IR is the price of money, and the world is awash with money and which is tied up in assets (shares, houses) rather than fuelling general demand (hence no inflation, and also hence no need for the nomial ir to rise).

End of lease question

markymark

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Wobble

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crotchrocket

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JohnnyBoxer

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Big Si

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adm1

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twizzle

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brummy bloke

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Matty589

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JohnnyBoxer

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Matty589

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markymark

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