Pcp Bikes

Discussion in 'Triumph General Discussion' started by chuk, May 23, 2019.

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  1. chuk

    chuk Senior Member
    Subscriber

    Jan 10, 2017
    280
    113
    neilston glasgow
    ive not looked in depth at this option but seen a few of the basics,I.e pay over 3 years low payments then either pay to own or give back etc etc,one thing is do you need to pay for servicing not talking about lots of mileage maybe 2-3k a year or so.
     
  2. In my own world

    In my own world Senior Member

    Dec 22, 2018
    290
    113
    West Sussex
    PCP is not my thing. Within 3 years of rental, you lose out if you have fitted extras, Tyres etc. I would rather go for straight HP or buy outright. The only thing good about PCP is you can get on the road cheaper with the lowest deposit. Remember you still have to tax, service it. The large balloon payment is the worse bit. You either pay it or give the bike back or start from scratch again.
    If you have good financial rating try a bank loan it can work out cheaper in the long run and you own the bike. There are some good deals out there at the moment. M&S Bank can offer from 3%ARP over up to 5 years..
     
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  3. chuk

    chuk Senior Member
    Subscriber

    Jan 10, 2017
    280
    113
    neilston glasgow
    I know most of that so I’ve never had any info on servicing and whether that’s included or not,so financial wise I’ve got good credit I will just look at all options on table thanks.
     
  4. freck

    freck Elite Member
    Subscriber

    May 4, 2017
    2,085
    750
    Preston, Lancs, UK
    Servicing isn’t included, neither are consumables so it’ll cost you just the same to keep it on the road whether it’s PCP or a bank loan.
    As @In my own world says, it’s usually cheaper to get on the road and the monthly outlay is cheaper than a loan but you have to weigh up whether you’re going to keep the bike or want to change for a new one every few years. Keep it then HP/bank loan, change it then consider PCP.
    I went for PCP on my BMW just for the flexibility it’s given me to change bikes easily every few years without having to bother trying to sell it privately, plus they give you a guaranteed future value if it’s been well looked after and is within the agreed mileage.
     
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  5. Callumity

    Callumity Elite Member

    Feb 25, 2017
    3,436
    750
    Nr Biggar
    The thing to remember about PCP is that it is a loan you never repay. Rather you just pay interest.......which makes it look cheap.

    The downside is that you don’t get your deposit back and at the expiration will need to find a new deposit for your next bike or buy out the old one. (Separate loan?) You never own the bike. You just chuck in a wedge then service the difference between purchase price and agreed return value so have nothing at the end of the contract. Servicing and any obvious dings that impair they agreed value you pay for.....

    This is a pretty good guide https://www.moneysavingexpert.com/car-finance/personal-contract-purchase/. The site is worth studying.

    There is no ‘right or wrong’ in financing a bike. It is personal to you and your circumstances. However, the cheapest way to roll off the forecourt is generally the most expensive in the long term.

    Final thought: depreciation is about the biggest cost of ownership. Buying a 12-18 month old pristine machine makes huge financial sense.
     
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  6. freck

    freck Elite Member
    Subscriber

    May 4, 2017
    2,085
    750
    Preston, Lancs, UK
    You don’t normally need to find any deposit for your next bike on PCP as it’s usually absorbed into the next deal, but yes it does mean you’ll end up paying a little more in the end. Of course you can just pay the balloon payment and keep the bike, and if you’ve negotiated the deal we’ll enough you won’t end up paying too much more than a loan.
     
  7. Callumity

    Callumity Elite Member

    Feb 25, 2017
    3,436
    750
    Nr Biggar
    I wasn’t going to repeat the guide but generally speaking the cheapest total ownership cost option is
    1. Save up (which is killing!)
    followed by....
    2. Personal loan
    3. Hire purchase
    4. PCP

    However, all sorts of incentives can skew the numbers. You can negotiate better with your own wedge but clothing and accessories can sweeten deals for the cash strapped. I just urge folk to wise up before committing to early buyer’s remorse!
     
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  8. Hamburg

    Hamburg Senior Member

    Dec 12, 2018
    975
    193
    Oxford, UK
    Number 4 maybe the least economical way to purchase a bike but it’s now by far the most popular, nearly all my biking mates have new bikes on pcp deals.

    I can completely understand the appeal, but it’s not for me, I’d rather buy a clean low mileage five year old bike and just pay for it outright. I’ve never had the urge to own the very latest of anything. The fact that my 2013 675 has now been superseded really doesn’t bother me, I’m still enjoying the ownership experience of a £4250 bike that still looks and rides like its brand new.
     
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  9. littleade

    littleade The only sane one here
    Subscriber

    Mar 17, 2015
    5,563
    1,000
    kidderminster Worcestershire
    PCP's do suit some who want the latest model bike and change their machines every few years, but it comes at a cost. Dealers love PCPs because it allows people to get a bike they would otherwise struggle to finance.... yes sir you can have this for just £199 per month and if you want all those extras it won't cost much more, blah blah blah. Many do the same with cars, but you can end up trapped in a repeating cycle of PCP after PCP, tied into the same manufacturer. The upside is if anything goes wrong with the bike it actually belongs to the finance company and they have more clout when it comes to getting big problems sorted or the bike rejected. The other advantage is if your bike is unreliable and has loads of warranty work done at the end of the PCP you can just hand the bike back and it becomes the dealers problem. You pays your money.....
     
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  10. Eldon

    Eldon Elite Member

    Nov 14, 2018
    1,516
    750
    North Yorkshire
    I came to my own philosophy years ago;

    Convenience costs!

    It applies to many things in life and here is a classic example.
     
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  11. chuk

    chuk Senior Member
    Subscriber

    Jan 10, 2017
    280
    113
    neilston glasgow
    Bike I seen in dealer was 2 years old Africa twin dct 2,500 miles on at 8750,new I think about 12k mark spotless but haven’t pulled the plug.
     
  12. In my own world

    In my own world Senior Member

    Dec 22, 2018
    290
    113
    West Sussex
    I owned the original XRV 750 AT. Loved it except for the twitchy front 21" wheel. I travel all over Europe and beyond on it and did a lot of off road work. The "V" engine had some lovely low down torque. Never had a problem in the 75k i owned it over 5 years. I tested the new parrel twin model in manual and auto. Found the auto wanting in corners. The manual one just doesn't have the character of the old model.
     
  13. chuk

    chuk Senior Member
    Subscriber

    Jan 10, 2017
    280
    113
    neilston glasgow
    I agree that probably right about the earlier v twins but they are fetching strong money,not seen many lower miles decent condition ones this side of 3k plus certainly hold value well.
     
  14. In my own world

    In my own world Senior Member

    Dec 22, 2018
    290
    113
    West Sussex
    My mate bought mine and when he sold it it was on 102 thou miles. Really regret selling it.
     
  15. Eldon

    Eldon Elite Member

    Nov 14, 2018
    1,516
    750
    North Yorkshire
    Is this the same bike you two refer to?
    Met this guy (one in brown jumper, other one is my mates dad) in isle of man, he was a real character, could really hold an audience with his tales and dry humour. He absolutely loves his and told a reboring tale when it was in some far flung place at 250k.
    Think he said he had 3 -400k on his now :worried:

    IMAG6407.jpg
     
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