Taking finance on a new bike and paying it off - worth it?

darthdicky

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Buying a new bike (S1000XR so almost a GS!) and have the option of taking BMW finance and getting a £500 deposit contribution thrown in. Simple me thinks great - free money! However, I don't think BMW Financial Services are that daft. If I ring them up after a few weeks/months to settle in full, will they inflate the amount remaining owed to cover that or am I still likely to be in a better position overall?

Two dealers I've spoken to say it happens a lot and isn't an issue, but I'm having second thoughts. Have the money saved up for it so don't need the finance, and don't intend to pay the extra £1400 (minus £500) over the 2 year term for the pleasure of having it as I can't get 7.9% interest anywhere else.

Has anyone else done this?

Rich
 
I have done it a few times they don’t mind.

Forgot to say don’t do it through a business must be a private loan they won’t let you out without cost’s , I had a lucky escape some years back but Rednal BMW honoured the deal and paid the interest for me, I wish they still traded nice place to deal with.
 
Mrs did it with her last car, £1500 contribution, paid it all off within a week.
 
14 cooling off period can apply as well in some cases.
Just wait 48-72hrs, call them and there'll be a settlement figure already calculated on their system.
 
Hi

I did this with my Jag, and then the missus with her car.

You have a legal 14 day cancellation period. When I spoke to the dealer, they are fully aware what some buyers intend to do.

However, those that don't still ensure its financially profitable for them.
 
As above ... got a decent amount off a new 5 series then paid the balance 2 months later. No issues at all. :)
 
Thanks all, sounds like it's worth doing then. My main worry is that I will ring up and the settlement figure brings the total to more than I've said I'll pay for it! Doesn't sound like that should happen so I'll give it a go.

Not buying through a business so that shouldn't be a problem.
 
yep its no prob paying off the finance after you sign the dotted line....dealerships are given a base figure to use as free contribution , so haggle harder get a £750 contribution OR a bigger discount. The dealers get a commission from BMW to sell finance packages, so you will get he best deal by doing this
 
When I bought my car last year, I discussed doing the finance and then cancelling it. The Salesman said that Honda were now taking back the incentive from the dealer if a customer got a contribution for taking finance then immediately cancelled. So he told me if I was intending to do that, he would rather do something more for me along the extras etc. Which is what I did as I didn't want to screw over the salesman as they were pretty good to me. But he might have been spinning me a line, but it did seem plausible, as someone has to cough up for the discount :)
 
To get the finance and 500 contribution are you paying list price?
 
Have done it myself on a car. I was buying it with my own finance and the salesman asked repeatedly did I want finance. Eventually he asked why not so I explained that his interest was not my best option. He then discussed how (onlyj if I took finance he could discount the car to get the total paid including interest to my figure. I agreed and signed up to the deal and drove the car out of the showroom (Porsche Belfast) on the Thursday.

Every finance agreement has a 14 day cooling off period to protect the customer so on the Monday I phoned up and paid off the discounted price of the car excluding the interest. Nice saving grabbed.

Barry
 
To get the finance and 500 contribution are you paying list price?

No, got a discount on the total price too and this is an offer on top. Still slightly in the "it's too good to be true" mindset but plenty of people seem to have done it successfully and saved a fair bit so I'm keen to join them!
 
Seems like a win-win then, go for it, I would!
 
Thanks but I don't need a loan for it, this is purely to get an extra discount for taking their finance and then paying it off.
 
At 7.9% apr it's not worth the faff if you have the cash for the purchase imo.If itnwas more than £500 it may be worth it but itnall depends upon how they calculate your settlement figure.
 
Got my bike at the weekend and rang up today to withdraw from the finance. I had filled out the form on 28/02 so technically was 1 day over the 14 day withdrawal limit but they didn’t have a problem with it. They gave me a final figure which was the amount financed plus £30ish interest for the 15 days, sent me an email with the details and I transferred it to their account. Fingers crossed they don’t try to claw back the deposit contribution but it appears I’m £470 up on the deal. More to spend on accessories and the first service!
 
Well done Dicky, glad it all worked out good , nice to see some one get one over on the dealer for a change
 


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