PCP Lesson learned

[mab1067]

As mentioned before i was looking for a 16 plate K1300S and ventually one came up in BMW dealer. 3500 MILES and £13k. Bit expensive as no Rack and no panniers.
However out of interest I went through the motions to see why being a loyal BMW bike owner would bring me. Well absolutley nothing 
Best trade in price offered was £8000. My final value or payment at end of deal is £7360 and traded in last bike for £5k so nice low payments.
I did express my disappointment and anger at sales pitch when buying on PCP as assured when the time came i would have a good deposit  as bike would still be worth a few quid. Now looking on Autrader you would think that as a similar bike like mine but year older is advertised by BMW dealer for £10250 so thinking mine would be around £10750 as i have rack and some extras to boot. Was informed by dealer that there was no chance my bike would come close to this value due to VAT / WARRANTY / Service and all the things he would have to do against my bike.

So in the end I feel totally disappointed and almosted cheated to be honest as PCP obviously does not leave any equity for next new bike. Just as well i love my bike and will now end up keeping forever. Hopefully BMW will see fit to replace Front wheel carrier due to corrosion or else I am going to flip. Which is a shame as local dealer trying very hard to keep me happy. Be interesting if i go there for a tradein??

So lesson learned tha PCP is maybe not the best way forward as led to believe. Niave to say the least but was smitten with bike that i did not really rsearch in the first place with other finance options or cheaper bike. 

[Eyore]

Woulden't bother with PCP on a bike which for me is effectively a toy, I like to play around with bikes, modify them and the thought of agreed mileage etc would put me off. I prefer to buy bikes outright that I own, that are  a few years old with low mileage , service history and immaculate condition which have already done their big depreciation.   I do have it on the car which is different as the car is purely functional and kind of disposable in the sense that after three years without any service costs and a decent agreed value it gets changed for another, its a bit like long term car hire it also only costs 1.9% APR which is for nothing, but  I'd absolutely hate the thought of that on a bike.

[Phmode]

I have always believed that there is no such thing as a free lunch!

At the end of the day, the stealers will always steal.

[richtea]

My simplistic view on PCP is that an intermediary is involved, and that means they want a cut.

So, as far as I can tell, PCP can't be better value than outright payment. If the interest is too good to be true, then there'll be another catch (inflated price, no discount on list, etc).

However, cars and bikes are becoming sooooo expensive that never actually owning one is becoming the norm, so it's understandable that people go for it.
A monthly £300 payment is much more palatable than a £13k lump sum. 

[Phmode]

On the other hand, when a bike is handed back at the end of a contract, as was the one I bought, then it is often a bargain on the non-franchised dealer network. It would have cost 2k more from a dealer but none of them wanted it, which is where the independent I bought from came in; currently making a nice living buying and selling ex-PCP bikes.

Brian (who finds typing with crossed fingers to be a challenge  )

[Eyore]

Interestingly last weeks MCN mentioned that dealers are finding that  ex PCP bikes tend not to be maintained to the same standard as privately owned/financed bikes. Wonder if its stems from a feeling that its really only a rented bike?

[Phmode]

Thankfully mine was previously owned by a swivel-eyed motorcycle fanatic who lavished love and polish and ACF-50 on it in copious quantities!

[mab1067]

Interesting statement from MCN. Obviously my PCP deal was through a BMW dealer and i service as per book and look after bike to a very high standard.
Agree with all comments though and expensive lesson learned

[Bullet]

If i could type as well as Brian, it would be a lot easier for a good response in both favour of PCP and against.

But as i can't, in short, PCP is making it easier for people to get the machine of their dreams at very low repayments - less likely for folk to default, effectively your renting it, controlling the repayments with the deposit you put down, leaving your cash for the 'just in case'.
Yes there is a final payment which you must consider.
Against : is that it costs you more in the long run, but you can at least go out on it because you have money in your bank.
£300 a month for HP yes, but PCP ? feck that.
I bought my FJR new 2 years ago, £55 month....the more you put down, the better the deal at the end. Taken out over 4 yrs, final payment £4200....bike will be worth a lot more than that, but will either sell before or keep.
For me ( self employed ) it works as my income isn't set in stone and not guaranteed each year and I require funds for the odd 'deal'
The money I saved by not buying outright allows me to have 2 more toys in the garage.
For : If all goes pear shaped work wise, you just give the bike back, cut your losses but don't get a bad credit rating.
Rich people didn't get rich because they bought everything cash, most done on the never never and repaid when they could afford it.

There will be something else that comes out soon as everything is getting out of control price wise and soon most people will own nothing........buts thats another debate I'm sure.

Now going for a lay down as my arm aches !! 

[Matt]

I have always believed that there is no such thing as a free lunch!

At the end of the day, the stealers will always steal.

How long do I have to wait after buying you lunch before asking to borrow your GS911 so it's not considered payment?

[Phmode]

I'm OK with payment. Money, beer, women, cases of Scotch....

As long as you give me notice to make sure my ancient, but very necessary, Nokia is fully charged, we're good to go 

[Belco100]

My last Triumph Tiger was £7K, and it was unusual to see a bike much over that. Then the world went made around 2008 and if you want a new bike nowadays they are just soooo expensive. Exchange rates, new electronics and accessories etc. Now most range topping BMWs, Triumphs, KTMs and even Jap bikes are in the £15K region with bits on top taking them a few thousand higher!

My first dealings with PCP on my K1300GT were very good, and a good deal to start and then a good trade in at the end actually made the overall deal less than 0% finance. Have a good fiddle with annual mileage and how many years etc to see what comes out best. And you don't have to take the bike back to where you bought it for the trade in, so shop around.

I have had a fixation on K1600GTs since then and just found the perfect bike for me, but even if I had £20K in the bank I wouldn't spend it on a bike. Putting a deposit down and paying a bit each month makes more sense to me, and I have a guaranteed "sale" price at the end if the bike is a pig, or a cheap "buy" price if I still want it.