Bike Finance

Originally Posted by svste

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]

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.

Originally Posted by Mr Speirs

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

[Biker Biggles]

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.

Originally Posted by Biker Biggles

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.

Originally Posted by Bunks

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]

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.

Originally Posted by specialone

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.

Originally Posted by Mr Speirs

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.

Originally Posted by specialone

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.