PCP/Finance - The facts

Originally Posted by NTECUK

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

First service at 600 miles is free, after that every 4000 miles or 1 year. Costs around £150 a time.

[NTECUK]

Not round hear
£230, first proper service 6000 miles 1Year daytona 675 2013 model

Sorry, yes it is now 6000 miles or annually. The Daytona is more expensive to service but £230 sound a little OTT for a standard service.

[NTECUK]

2 main triumph on independent.
Fortunately next year's I'll do it. No longer under wt

[yorkie_chris]

Originally Posted by Ninthbike

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.

Cos they get more commission from the finance agreement than selling the bike so will say owt to get you onto it mebbe?

Something to do with the profit on 150 on a fookin oil change* cos they've got you over a barrel from the HP agreement.

£150 every 4000 miles... ouch. That's about £600 a year saving to be made, would you not be better off just taking the hit on the "equity" at the end? Over 3 years you might as well have just bought it in first place lol.



*Awaits sarah to turn up and tell me what they actually do and the rest of them *should* do on a service.

Originally Posted by yorkie_chris

Cos they get more commission from the finance agreement than selling the bike so will say owt to get you onto it mebbe?

Something to do with the profit on 150 on a fookin oil change* cos they've got you over a barrel from the HP agreement.

£150 every 4000 miles... ouch. That's about £600 a year saving to be made, would you not be better off just taking the hit on the "equity" at the end? Over 3 years you might as well have just bought it in first place lol.



*Awaits sarah to turn up and tell me what they actually do and the rest of them *should* do on a service.

As I keep saying, it's not for everyone. Qualification is the key - if you do 12000 miles P.A. then it's probably not for you (but you can reduce the final GFV by up to 50%).
Most salesmen are now salaried to prevent them from mis-selling under new guidance from the FCA. They cannot be seen to favour one type of finance agreement over another but should lay out all options for you and allow you to choose. Many new bikes are now on fixed, low-APR finance or 0% too. Depends on your preference. As for the profit on an oil change, that is a huge exaggeration but you can get this done at any VAT registered business and still maintain your warranty. Would you not expect your dealer to make a profit? How would you feel if you called them when your bike broke only to find that they have gone out of business? I'm sure your wages probably come from the income made by your employer so why is it unreasonable to expect the same from a dealer? Like I say, the choice is yours.
P.S. Finance also offers more protection as the finance company are jointly liable for merchantable quality and fitness for purpose which means that if you have a serious issue with your bike that your dealer cannot resolve, they usually reach for their cheque book.

[yorkie_chris]

We've had the debate about workshop rates on here before, repeatedly.

They end up subsidising the shiny showroom with the workshop. Why this? I don't need to buy tyres and oil from a "prime location" or pay for some cnuts 10 grand carpet on the floor. They want a prestigious business... alright fine, not my problem. I'm happy to go to someone in an industrial estate with fair rates. If that puts them out of business, then the problem is with their business model not fitting reality not mine.
Or is drinking crap coffee in a glitzy showroom so important to everyone's state of well-being?

I take issue with your comments that nobody needs to own anything. It's this throwaway society attitude that isn't good. The only winners in that game are the bankers and insurers.
Owning something that depreciates, or paying for the depreciation and never owning it! If I bought a new un I'd expect to keep it until it was fooked and the average depreciation wouldn't be too painful.

Suppose I shouldn't complain really, my shagged secondhand vehicles probably all started out life that way.

Originally Posted by yorkie_chris

We've had the debate about workshop rates on here before, repeatedly.

They end up subsidising the shiny showroom with the workshop. Why this? I don't need to buy tyres and oil from a "prime location" or pay for some cnuts 10 grand carpet on the floor. They want a prestigious business... alright fine, not my problem. I'm happy to go to someone in an industrial estate with fair rates. If that puts them out of business, then the problem is with their business model not fitting reality not mine.
Or is drinking crap coffee in a glitzy showroom so important to everyone's state of well-being?

I take issue with your comments that nobody needs to own anything. It's this throwaway society attitude that isn't good. The only winners in that game are the bankers and insurers.
Owning something that depreciates, or paying for the depreciation and never owning it! If I bought a new un I'd expect to keep it until it was fooked and the average depreciation wouldn't be too painful.

Suppose I shouldn't complain really, my shagged secondhand vehicles probably all started out life that way.

You hit on a very good point. At the moment, the UK is suffering a shortage of good, used bikes. This is due to two things, namely:
Very poor new bike sales during the last three-four years, and
The number of used bikes that were sold to buyers in Europe when the pound was really weak. Buyers took containers full of bikes into Europe and made a killing because they had bought them so cheaply.
This means that everyone is now having to pay more for decent used bikes as there are (relatively) so few about.

The facts are, buying any vehicle new is expensive however you choose to purchase it, pcp is an expensive way to ride or drive that vehicle.

If you like riding new bikes and want to change them regular then it may work for you, but do the maths on all forms of finance, you'll find it's not the cheapest by a long way.

I have changed my bikes regular since I started riding and haven't lost that much in depreciation tbh, that will change on my current bike though as I paid more for it, pay more =lose more, it's that simple.

Originally Posted by Specialone

The facts are, buying any vehicle new is expensive however you choose to purchase it, pcp is an expensive way to ride or drive that vehicle.

If you like riding new bikes and want to change them regular then it may work for you, but do the maths on all forms of finance, you'll find it's not the cheapest by a long way.

I have changed my bikes regular since I started riding and haven't lost that much in depreciation tbh, that will change on my current bike though as I paid more for it, pay more =lose more, it's that simple.

All true but most current PCP offers are sub 10% APR (including about £200 in fees) which could be difficult to achieve on a different loan unless you have a gold-plated credit record. Also, this rate is fixed for the duration of the loan and we all know that interest rates are only going one way during the coming years............