PCP/Finance - The facts

Originally Posted by Specialone

I use personal loans to buy my bikes and other large ticket items, been buying stuff like this for 25 years, suits me perfectly.

Being self employed, I treat a bike as an asset, I can afford it, but if I got injured at work or my earnings dropped off a lot, I wouldn't hesitate to sell it and clear the loan, of which the loan balance is way lower than what the bike is worth.

Sometimes I could buy big stuff outright without loans but still choose to buy with a loan so I don't use my savings up, the savings are there for hard times just in case.

Which is another individual-specific approach. As I say, everyone will have their own view based upon their preference and circumstances.

Ninth, cool post really good stuff.

In terms of the credit card though - they changed this and so the banks/credit card companies now have to apportion payments to the highest amount of interest.

E.g. if you were to take cash out on a credit card, and have purchases on there, as the cash is typically at a higher rate, this would be what your payments would go to reduce first.

Originally Posted by EssexDave

Ninth, cool post really good stuff.

In terms of the credit card though - they changed this and so the banks/credit card companies now have to apportion payments to the highest amount of interest.

E.g. if you were to take cash out on a credit card, and have purchases on there, as the cash is typically at a higher rate, this would be what your payments would go to reduce first.

Yes, you could be right. However, there is now no such thing as a "free" balance transfer as the companies charge a %age fee for the transfer, usually around 2-2.5%. The "credit sluts" as they have been dubbed just need to be really disciplined to ensure that the balance is zero or is transferred before the interest-free period expires.

[Littlepeahead]

If money were no object I'd buy that Ducati Diavel from the Wolverine movie but insist it came with Hugh Jackman in the tight vest as one of the extras, then I'd just keep both in the garage to look at, and I might ride one of them.

Ahem, right enough of my little fantasies, that is really useful info as I'd never really understood how those finance deals worked and now I do.

Originally Posted by Littlepeahead

If money were no object I'd buy that Ducati Diavel from the Wolverine movie but insist it came with Hugh Jackman in the tight vest as one of the extras, then I'd just keep both in the garage to look at, and I might ride one of them.

Ahem, right enough of my little fantasies, that is really useful info as I'd never really understood how those finance deals worked and now I do.

Thanks LPH. That was my intention. Because many dealer salesmen actually don't know the finance products that well themselves it means that buyers end up with misleading information about their options.

[TheRamJam]

Great post Ninthbike.

I think PCP is a good product and an affordable way to temporarily own the latest bike. Lets face it the bonus of no MOT, no maintainence costs etc is defo an incentive and i think it can bring a lot of new bikers to the market. IMO a good thing.

I am paying £132 a month for my blade on finance. I put a sizeable deposit down at the start so in 3 years I will own the bike outright with only £234 single payment at the end.

For me that sum is easily affordable each month. I don't smoke or drink alcohol on a daily basis so I do have some expendible income to spend on luxury items. I mean what would one spend on a night out with friends?? Maybe £50 in drinks and say £20 for the takeaway and taxi home. Thats £70 and if you go out every Friday that's £280 a month

So basically what I'm saying is I don't have any friends and I sit in and watch telly

LOL!!! But you do have a nice bike which you don't need friends to enjoy!!

I don't think we are saying it's a bad thing but most of us on here would never need to use it as it's expensive compared to what we pay for riding now.

And on the "labour" cost. I earn £13.25 an hour as a dual skilled electrician so working on a motorbike isn't out of my skillset. So in my eyes my labour is £13.25 an hour not £60 an hour from thunder road my local dealers which i've had nightmare experiences from and so has my brother. So why would i fork out probably £200 a month on a street triple then at the end about £4k to buy it when i can buy a 3 year old one for £4k. I'm sure my running costs for 3 years won't be £2.5k i've be paying in finance (+ GAP). Even someone with minimal engineering knowledge would be able to do the numbers and with a local reliable friend/mechanic be able to save a fortune.

[NTECUK]

On PCP your still have to shell out on a service unless you get one with that included .
My Qashqai does not.
So

Originally Posted by thefallenangel

I don't think we are saying it's a bad thing but most of us on here would never need to use it as it's expensive compared to what we pay for riding now.

And on the "labour" cost. I earn £13.25 an hour as a dual skilled electrician so working on a motorbike isn't out of my skillset. So in my eyes my labour is £13.25 an hour not £60 an hour from thunder road my local dealers which i've had nightmare experiences from and so has my brother. So why would i fork out probably £200 a month on a street triple then at the end about £4k to buy it when i can buy a 3 year old one for £4k. I'm sure my running costs for 3 years won't be £2.5k i've be paying in finance (+ GAP). Even someone with minimal engineering knowledge would be able to do the numbers and with a local reliable friend/mechanic be able to save a fortune.

But the point is that you get to enjoy a brand new bike for three years and then get the choice, if you want to, to buy a 3 year-old bike for £4k - one that you have actually had from new so you know everything about it - something that you cannot claim about a random used bike. The real (rather than made up) figures are actually this.
A new Street can be had for a deposit of £1600 and £95 per month, then £3549 to buy it if you want to. This also assumes that you pay full retail. Details here http://www.triumphmotorcycles.co.uk/...k/extra-street
As the bike will probably be worth somewhere over £4500 you would then have around £1000 equity to do with as you please.