Pcp Bikes

PCP is not my thing. Within 3 years of rental, you lose out if you have fitted extras, Tyres etc. I would rather go for straight HP or buy outright. The only thing good about PCP is you can get on the road cheaper with the lowest deposit. Remember you still have to tax, service it. The large balloon payment is the worse bit. You either pay it or give the bike back or start from scratch again.
If you have good financial rating try a bank loan it can work out cheaper in the long run and you own the bike. There are some good deals out there at the moment. M&S Bank can offer from 3%ARP over up to 5 years..

 

Servicing isn’t included, neither are consumables so it’ll cost you just the same to keep it on the road whether it’s PCP or a bank loan.
As @In my own world says, it’s usually cheaper to get on the road and the monthly outlay is cheaper than a loan but you have to weigh up whether you’re going to keep the bike or want to change for a new one every few years. Keep it then HP/bank loan, change it then consider PCP.
I went for PCP on my BMW just for the flexibility it’s given me to change bikes easily every few years without having to bother trying to sell it privately, plus they give you a guaranteed future value if it’s been well looked after and is within the agreed mileage.

 

The thing to remember about PCP is that it is a loan you never repay. Rather you just pay interest.......which makes it look cheap.

The downside is that you don’t get your deposit back and at the expiration will need to find a new deposit for your next bike or buy out the old one. (Separate loan?) You never own the bike. You just chuck in a wedge then service the difference between purchase price and agreed return value so have nothing at the end of the contract. Servicing and any obvious dings that impair they agreed value you pay for.....

This is a pretty good guide https://www.moneysavingexpert.com/car-finance/personal-contract-purchase/. The site is worth studying.

There is no ‘right or wrong’ in financing a bike. It is personal to you and your circumstances. However, the cheapest way to roll off the forecourt is generally the most expensive in the long term.

Final thought: depreciation is about the biggest cost of ownership. Buying a 12-18 month old pristine machine makes huge financial sense.

 

You don’t normally need to find any deposit for your next bike on PCP as it’s usually absorbed into the next deal, but yes it does mean you’ll end up paying a little more in the end. Of course you can just pay the balloon payment and keep the bike, and if you’ve negotiated the deal we’ll enough you won’t end up paying too much more than a loan.

 

I wasn’t going to repeat the guide but generally speaking the cheapest total ownership cost option is
1. Save up (which is killing!)
followed by....
2. Personal loan
3. Hire purchase
4. PCP

However, all sorts of incentives can skew the numbers. You can negotiate better with your own wedge but clothing and accessories can sweeten deals for the cash strapped. I just urge folk to wise up before committing to early buyer’s remorse!

 

Number 4 maybe the least economical way to purchase a bike but it’s now by far the most popular, nearly all my biking mates have new bikes on pcp deals.

I can completely understand the appeal, but it’s not for me, I’d rather buy a clean low mileage five year old bike and just pay for it outright. I’ve never had the urge to own the very latest of anything. The fact that my 2013 675 has now been superseded really doesn’t bother me, I’m still enjoying the ownership experience of a £4250 bike that still looks and rides like its brand new.

 

I came to my own philosophy years ago;

Convenience costs!

It applies to many things in life and here is a classic example.

 

I owned the original XRV 750 AT. Loved it except for the twitchy front 21" wheel. I travel all over Europe and beyond on it and did a lot of off road work. The "V" engine had some lovely low down torque. Never had a problem in the 75k i owned it over 5 years. I tested the new parrel twin model in manual and auto. Found the auto wanting in corners. The manual one just doesn't have the character of the old model.

 

My mate bought mine and when he sold it it was on 102 thou miles. Really regret selling it.

 

Is this the same bike you two refer to?
Met this guy (one in brown jumper, other one is my mates dad) in isle of man, he was a real character, could really hold an audience with his tales and dry humour. He absolutely loves his and told a reboring tale when it was in some far flung place at 250k.
Think he said he had 3 -400k on his now