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Bunks
03-07-10, 06:17 PM
I've been out for a ride on a new bike today, I think, a very expensive new bike! I love the bike, it's so fast but well mannered, comfortable and would put a massive grin on anyones face. So when I took it back to the dealer we got to the inevitable discussion on price. Now I've always said after owning a sports car I'll never buy a car on finance again, I hate the constant payment comming out of my bank. I can just afford the bike if I haggle a bit more but I'm really finding it difficult to justify spending ALL my savings on a motorcycle. There is the option of finance which works out as my bike as a deposit plus £200 a month, then at the end a ballon payment of about £5000 to own the bike or hand it back or apparently there should be some value left on the bike to use as a deposit on my next bike.

So the question really is...what do you guys and girls do? Do you buy a bike outright or more importantly if you had the cash would you buy it outright? Would you save the money in the bank and give them the £200 each month. Would you sack it all and just stick with the SV :). Your thought please :smt045

Milky Bar Kid
03-07-10, 06:20 PM
Erm...how long are you paying £200 a month for??? PLUS a £5000 payment to own the bike? That doesn't sound like finance to me, that sounds like a lease, which I would steer clear of, personally.

I bought my brand new CBR on finance, 0% over two years. Works out about £250 a month and at then end of the two years the bike is mine...

Specialone
03-07-10, 06:31 PM
That does sound high tbh, some dealers are offering low rate finance.
I had a loan for mine cos it was cheaper from my bank.
I could have just about bought mine but left my account low and not much fall back money if things go pear shaped.
I pay £150 month for £4500.

fizzwheel
03-07-10, 06:59 PM
If I had the cash I'd buy with that and not take the finance.

We were in the local Yamaha dealer the other weekend and they were doing 0% finance on certain models. So shop around and see what you can find.

Bunks
03-07-10, 07:12 PM
Erm...how long are you paying £200 a month for??? PLUS a £5000 payment to own the bike? That doesn't sound like finance to me, that sounds like a lease, which I would steer clear of, personally.

I bought my brand new CBR on finance, 0% over two years. Works out about £250 a month and at then end of the two years the bike is mine...

It is a three year deal, I think it's like a car finance deal, is it called PCP where there is a ballon payment at the end?

Bunks
03-07-10, 07:14 PM
That does sound high tbh, some dealers are offering low rate finance.
I had a loan for mine cos it was cheaper from my bank.
I could have just about bought mine but left my account low and not much fall back money if things go pear shaped.
I pay £150 month for £4500.


It's a ....dare I say it BMW (:-$) dealer so no low rate lones!! :rolleyes:

BoltonSte
03-07-10, 07:16 PM
If you are going to do finance (I did on thr St3, but they gave me what I payed for my SV 2 years before as the px rate) then go on money saving expert thingy and see what's availible. I got mine through the Co-op for 1/2 the rate of the dealer. It balanced out that I financed a larger % than initially planned, but this 1. Kept more of my savings, 2. Still saved me a boatload of interest compared to the dealer.

Just do the sums and see if you can comfotably afford it, and look at all you options.

BTW, the dealer tried telling me that I'd never get the rate I did, his other half works in a bank and they don't offer that rate etc. etc.

Ste

Bunks
03-07-10, 07:20 PM
If you are going to do finance (I did on thr St3, but they gave me what I payed for my SV 2 years before as the px rate) then go on money saving expert thingy and see what's availible. I got mine through the Co-op for 1/2 the rate of the dealer. It balanced out that I financed a larger % than initially planned, but this 1. Kept more of my savings, 2. Still saved me a boatload of interest compared to the dealer.

Just do the sums and see if you can comfotably afford it, and look at all you options.

BTW, the dealer tried telling me that I'd never get the rate I did, his other half works in a bank and they don't offer that rate etc. etc.

Ste

I was just doing that as you replied. £250 to borrow £8000 over three years. Heavy interest rate, about 7.8%. It's sooo annoying because all my money is in an ISA and I get £20 a month interest about 3%. Robbing banking *******s :smt072

ChrisSV
03-07-10, 07:22 PM
I got my SV on finance 0% over three years. £102 a month.
I had the money to buy outright, but id rather not empty me bank tbh, but if you have the money, and still have some left over, id buy straight out, because i dont really trust the lease schemes tbh.

BoltonSte
03-07-10, 07:25 PM
I was just doing that as you replied. £250 to borrow £8000 over three years. Heavy interest rate, about 7.8%. It's sooo annoying because all my money is in an ISA and I get £20 a month interest about 3%. Robbing banking *******s :smt072

what's the BMW rate? ~15% I'd think.

Ste

Bunks
03-07-10, 07:28 PM
what's the BMW rate? ~15% I'd think.

Ste


Well they said 5.5% FLAT rate but what that is as APR I have no idea.

Mr Speirs
03-07-10, 07:29 PM
I wouldn't get that PCP deal, they are essentially a rental until you pay the extra £5000.

So your bike as deposit £2000 minimum (assuming its the k6)
36 x £200 = £7200
and then the £5000
Total = £14,200

Thats a lot of money.

Whilst I am sure the bike is magic and great n all that there are a lot of bikes out there that would give the same grin factor for more than half the money!!

The other thing if you can only just afford it then it doesn't leave you anything to fall back on if the worst happened and you had to make a claim on insurance. Excess to pay n all that.
What's the insurance like?

I think you should follow your head as if you went for this on finance you will probably be saying the same thing in a year....'I wish I hadn't bought this on finance.

Bunks
03-07-10, 07:34 PM
I wouldn't get that PCP deal, they are essentially a rental until you pay the extra £5000.

So your bike as deposit £2000 minimum (assuming its the k6)
36 x £200 = £7200
and then the £5000
Total = £14,200

Thats a lot of money.

Whilst I am sure the bike is magic and great n all that there are a lot of bikes out there that would give the same grin factor for more than half the money!!

The other thing if you can only just afford it then it doesn't leave you anything to fall back on if the worst happened and you had to make a claim on insurance. Excess to pay n all that.
What's the insurance like?

I think you should follow your head as if you went for this on finance you will probably be saying the same thing in a year....'I wish I hadn't bought this on finance.


The insurnace is strange. I got a quote earlier in the year for it about £380 for a year. Now same details no claims it has jumped by about £150 :confused:

Biker Biggles
03-07-10, 07:37 PM
Sounds like a VERY expensive way to own a bike to me.I wouldnt touch that sort of deal unless I absolutely had to in order to buy something I needed.I doubt if a BMW meets that criteria as you already have a bike.

Bunks
03-07-10, 07:42 PM
Sounds like a VERY expensive way to own a bike to me.I wouldnt touch that sort of deal unless I absolutely had to in order to buy something I needed.I doubt if a BMW meets that criteria as you already have a bike.


Without doubt the PCP deal looks expensive. I knew I could rely on the org to talk sense! Still thinking of the bike though would any of you borrow about £8000 on a normal finance or just buy it outright with savings? If of course you were going to buy a bike like this.

Specialone
03-07-10, 08:07 PM
Without doubt the PCP deal looks expensive. I knew I could rely on the org to talk sense! Still thinking of the bike though would any of you borrow about £8000 on a normal finance or just buy it outright with savings? If of course you were going to buy a bike like this.
Personally speaking, if you can afford it why not?
You only live once, as long as you are comfortable with the payments and you are not being raped on the deal, then go for it.
I find it easier to pay something every month than save that amount every month.

Mr Speirs
03-07-10, 08:11 PM
I would borrow £8000 on a loan if I really really wanted the bike and could comfortably afford the replayments.

Think of yourself more like a business. A business if they needed a new piece of equipment wouldn't burn up capital to purchase said item, they would buy it on hire purchase thus not devaluing the company by putting capital into a depreciating asset.

Remember there is nothing wrong with buying things on finance as long as its the right finance and you can afford to repay, PCP isn't the right type of finance, a simple loan with a clear APR and set repayments until the end of the term is.

Personally I think getting a loan from a bank is better than a finance company as from the moment you pick the bike up it belongs to you whereas finance companies own the bike until the last payment is made. So if you decide you need to sell the bike for whatever reason or fancy a change you can do so without having to pay the finance company off first.

Bunks
03-07-10, 08:13 PM
Personally speaking, if you can afford it why not?
You only live once, as long as you are comfortable with the payments and you are not being raped on the deal, then go for it.
I find it easier to pay something every month than save that amount every month.

Well my thought is I could borrow about £8000, normal finance, then if I decide I don't like the monthly payments in a couple of months I could pay it off. I then have the benifits of both choices.

Specialone
03-07-10, 08:14 PM
Personally I think getting a loan from a bank is better than a finance company as from the moment you pick the bike up it belongs to you whereas finance companies own the bike until the last payment is made. So if you decide you need to sell the bike for whatever reason or fancy a change you can do so without having to pay the finance company off first.

Good point mr speirs, i forgot to mention that, also if you hit on hard times you can flog the bike and pay off remaining of loan and because you put a deposit down the bike will always be worth more than whats is owed.

Bunks
03-07-10, 08:18 PM
Good point mr speirs, i forgot to mention that, also if you hit on hard times you can flog the bike and pay off remaining of loan and because you put a deposit down the bike will always be worth more than whats is owed.


Yes you all speak sence, thanks for the advice, I might do the finance thing.
By the way hows the Triumph ST. I went to have a look at one today while I was on the BM and booked a test ride for the weekend after next on the old ST and the new GT. But the BM is soooo good.

Mr Speirs
03-07-10, 08:20 PM
Which BM was it btw. The S1000RR?

Bunks
03-07-10, 08:22 PM
Which BM was it btw. The S1000RR?

No No. It's bigger than that! K1300S. I fancy something I can cover some ground on in more comfort. What do you think to them?

Biker Biggles
03-07-10, 08:26 PM
I disagree strongly with the advice to borrow £8000 when you already have the money in cash.You are getting 3% on the money now but you wont get a loan for anything like that as an APR.You therefore will be paying more for your £8000 than you are making on it now.Common sense says spend the money you have if you must buy the bike.

Mr Speirs
03-07-10, 08:28 PM
They are massive...not my thing though. Thought about the VFR1200 also?

Mr Speirs
03-07-10, 08:32 PM
I disagree strongly with the advice to borrow £8000 when you already have the money in cash.You are getting 3% on the money now but you wont get a loan for anything like that as an APR.You therefore will be paying more for your £8000 than you are making on it now.Common sense says spend the money you have if you must buy the bike.

To be fair it all depends whats going on in your life.
If you already have a house and mortgage and are fairly well grounded financially then yeah.

On the other hand if you have could benefit having spare capital for a possible house purchase (deposit) then borrowing the money makes perfect sense.

Bluefish
03-07-10, 08:37 PM
I disagree strongly with the advice to borrow £8000 when you already have the money in cash.You are getting 3% on the money now but you wont get a loan for anything like that as an APR.You therefore will be paying more for your £8000 than you are making on it now.Common sense says spend the money you have if you must buy the bike.

True this is the cheapest way to buy, but as has been said if it uses all your savings then you have nothing for a rainy day, maybe put down half or two thirds and a loan for the rest?

Bunks
03-07-10, 08:43 PM
They are massive...not my thing though. Thought about the VFR1200 also?


Yes rode one and a very good bike, in fact the dealers gonna still going to give me a call about it. The problem with it is no traction contol, no on board computer to speak of, no gear shift assist (which is fantastic) and I worry about mpg on it. Yes I know the K won't be great but there are reports of the K doing mid 40's - early 50's while the VFR is about mid 30's. When I rode the K today it was doing mid 40's to the gallon which I couldn't believe. The VFR in all is as expensive but without any toys and a little bland.

I know what you mean about the size but when I put it next to my SV it wasn't that much bigger. They look massive in pictures but when you get on it, it doesn't feel big at all.

Bunks
03-07-10, 08:45 PM
True this is the cheapest way to buy, but as has been said if it uses all your savings then you have nothing for a rainy day, maybe put down half or two thirds and a loan for the rest?


Another good idea.....

Specialone
03-07-10, 09:04 PM
Yes you all speak sence, thanks for the advice, I might do the finance thing.
By the way hows the Triumph ST. I went to have a look at one today while I was on the BM and booked a test ride for the weekend after next on the old ST and the new GT. But the BM is soooo good.

The st is ace, done 280 miles on it today, went to elan valley, now its run in, that thing flies :D
Im getting about 45 mpg on average.

You can get some really good deals on the old sprint, is the beemers additional 5k worth it regards to being better than what the sprint can offer, no way imo, slightly biased i know.

Bri w
03-07-10, 09:09 PM
How do you save the £5k for the balloon payment if you are paying £200 a month?