Is PCP........... the next debt crisis???

[IainD]

A PCP Tale.

In 2014 I purchased a brand new VFR800fe (in red of course) on a PCP deal from Miles Kingsport in Hull.

I traded in my F650GS, which was valued at more than the maximum trade in, so I got some cash back. Payments are £117.00 per month for three years.

The deal is up in August and I will be keeping the bike.

The cash I got back from the trade in was put in an ISA, even though it earns He Haw, it is out of the way. I am also putting away another £100.00 per month for the period. So total outlay of £217.00 per month.

The final payment is £3,600 ish and I will have money left over from what I have saved.

Plan it correctly and it is a perfect way to buy a bike.

Don't plan it correctly, just like a wet corner, mortgage, marriage etc. and you may be wetting yourself.

[-Ralph-]

A PCP Tale.

In 2014 I purchased a brand new VFR800fe (in red of course) on a PCP deal from Miles Kingsport in Hull.

I traded in my F650GS, which was valued at more than the maximum trade in, so I got some cash back. Payments are £117.00 per month for three years.

The deal is up in August and I will be keeping the bike.

The cash I got back from the trade in was put in an ISA, even though it earns He Haw, it is out of the way. I am also putting away another £100.00 per month for the period. So total outlay of £217.00 per month.

The final payment is £3,600 ish and I will have money left over from what I have saved.

Plan it correctly and it is a perfect way to buy a bike.

Don't plan it correctly, just like a wet corner, mortgage, marriage etc. and you may be wetting yourself.

36 x 117 = 4212

4212 + 3600 = 7812

VFR800fe is a 9 grand bike.

So how much was your trade in less your cash back?

The real question though is how much is a 12-18 month old VFR800fe? Which other than the numbers on the odometer and the number plate, is identical to the new bike.

PCP can work out even, or at least easier to the point your happy to pay for the ease of it.

But one thing it NEVER works out as, is cheaper.

And if you can let someone else take the initial depreciation hit, you will always save yourself ££££.

Sent from my SM-G935F using Tapatalk

[IainD]

A PCP Tale.

In 2014 I purchased a brand new VFR800fe (in red of course) on a PCP deal from Miles Kingsport in Hull.

I traded in my F650GS, which was valued at more than the maximum trade in, so I got some cash back. Payments are £117.00 per month for three years.

The deal is up in August and I will be keeping the bike.

The cash I got back from the trade in was put in an ISA, even though it earns He Haw, it is out of the way. I am also putting away another £100.00 per month for the period. So total outlay of £217.00 per month.

The final payment is £3,600 ish and I will have money left over from what I have saved.

Plan it correctly and it is a perfect way to buy a bike.

Don't plan it correctly, just like a wet corner, mortgage, marriage etc. and you may be wetting yourself.

36 x 117 = 4212

4212 + 3600 = 7812

VFR800fe is a 9 grand bike.

So how much was your trade in less your cash back?

The real question though is how much is a 12-18 month old VFR800fe? Which other than the numbers on the odometer and the number plate, is identical to the new bike.

PCP can work out even, or at least easier to the point your happy to pay for the ease of it.

But one thing it NEVER works out as, is cheaper.

And if you can let someone else take the initial depreciation hit, you will always save yourself ££££.

Sent from my SM-G935F using Tapatalk

Don't remember saying it was cheaper than other methods, just very simple and affordable, with options at the end of the payment period.

Bike was £10,400 OTR. I wish it had been £9k.

Buy second hand if you want, but not only are you losing warranty period, you also let someone else have the "joy of new bike ownership" (which in itself has a value to many people.

You also let them ragg hell out of it, abuse it and pass it on to you as the next owner (with the diminished warranty and unknown provenance) to possibly be left with a bike costing you £££.

There are always two sides and it is Horses for Courses, but no need to bash and discredit one form of finance over another.

[minkyhead]

my advice to anyone is simple save up :woohoo: buy it when you have the money and your life will be better in every way from that moment on ...

its a very simple equasion that applies to all incomes and all purchases ..if you cant save enough to buy it ..you cant afford it :whistle: and the more loans you take the less you will ever be able to do so


credit sucks its the antichrist to peace of mind //a life of constant debt and repayments (thumbs)

[-Ralph-]

A PCP Tale.

In 2014 I purchased a brand new VFR800fe (in red of course) on a PCP deal from Miles Kingsport in Hull.

I traded in my F650GS, which was valued at more than the maximum trade in, so I got some cash back. Payments are £117.00 per month for three years.

The deal is up in August and I will be keeping the bike.

The cash I got back from the trade in was put in an ISA, even though it earns He Haw, it is out of the way. I am also putting away another £100.00 per month for the period. So total outlay of £217.00 per month.

The final payment is £3,600 ish and I will have money left over from what I have saved.

Plan it correctly and it is a perfect way to buy a bike.

Don't plan it correctly, just like a wet corner, mortgage, marriage etc. and you may be wetting yourself.

36 x 117 = 4212

4212 + 3600 = 7812

VFR800fe is a 9 grand bike.

So how much was your trade in less your cash back?

The real question though is how much is a 12-18 month old VFR800fe? Which other than the numbers on the odometer and the number plate, is identical to the new bike.

PCP can work out even, or at least easier to the point your happy to pay for the ease of it.

But one thing it NEVER works out as, is cheaper.

And if you can let someone else take the initial depreciation hit, you will always save yourself ££££.

Sent from my SM-G935F using Tapatalk

Don't remember saying it was cheaper than other methods, just very simple and affordable, with options at the end of the payment period.

Bike was £10,400 OTR. I wish it had been £9k.

Buy second hand if you want, but not only are you losing warranty period, you also let someone else have the "joy of new bike ownership" (which in itself has a value to many people.

You also let them ragg hell out of it, abuse it and pass it on to you as the next owner (with the diminished warranty and unknown provenance) to possibly be left with a bike costing you £££.

There are always two sides and it is Horses for Courses, but no need to bash and discredit one form of finance over another.

I didn't say you said it was cheaper.

Nor did I bash any particular form of finance.

All I did ask was how much did you get for your trade in?

They are now 9 grand http://www.johnbanks.co.uk/used-bike-de ... 74664.aspx



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[AlanHolt]

So, AlanHolt, I'm clearly not bought into the while PCP thing, so why did I disagree with your post? Because I could end up taking one out sometime soon to replace that Toyota, and it's not because it's something I can't afford, it's because it makes financial sense.

I think you are the exception, I know a couple of people who simply say 'I can have a new xxxxx for the same monthly payment that I would pay for a loan on a much older car', which is true, but its not the point.

[johnnyboxer]

my advice to anyone is simple save up :woohoo: buy it when you have the money and your life will be better in every way from that moment on ...

its a very simple equasion that applies to all incomes and all purchases ..if you cant save enough to buy it ..you cant afford it :whistle: and the more loans you take the less you will ever be able to do so


credit sucks its the antichrist to peace of mind //a life of constant debt and repayments (thumbs)

And there endeth the lesson

Well said Steve

That's the trouble with the British, mired in personal debt and most is unsecured on cards or overdraft - their monthly wage is spent before they receive it

[sprintster]

my advice to anyone is simple save up :woohoo: buy it when you have the money and your life will be better in every way from that moment on ...

its a very simple equasion that applies to all incomes and all purchases ..if you cant save enough to buy it ..you cant afford it :whistle: and the more loans you take the less you will ever be able to do so


credit sucks its the antichrist to peace of mind //a life of constant debt and repayments (thumbs)

That's all very well when you are talking about something like a motorbike that is basically a toy.I've never liked having debt either and always used to buy old cars but in the last 7 months I'd spent £2000 buying cars and then have to get them repaired so I was never going to be able to save money to buy a decent car.Last week I decided enough was enough and took out a personal loan to buy a 2 year old car with 11k miles so hopefully I won't have any unexpected repair bills.I didn't want a pcp deal as I feel you will be shelling out every month forever but that's just my opinion.

[ledwardio]

A bit surprising that the Guardian use Lings as a reference for PCP, she only does leases - shoddy journalism.

I personally don't think PCP is a potential problem for the financiers, if they make any less money than expected then the cost of the next PCPs will go up. I do think it has the potential to trap people into a longer debt curve than they realise at the outset, if they don't fully digest how it works at the end of the term - those final payments make me wince, and yes I know that most people chop in for a new one, but then the payments continue, so that's why I mean by how people might not realise the long-term trap.

We have a personal lease one of our cars, it was cheaper per month and needed less deposit than PCP. It's coming to an end in 6 months so have been looking around and this still mostly seems to be the case, depending on the car.

With my bikes I've always been more of a mindset to get a loan (I'm a rubbish saver) and buy it, not sure why - it feels like a more personal purchase than a car. I do think a negative side of PCP on bikes is that it's given the manufacturers a bit of a green light to raise prices to very salty levels.

[Old Git Ray]

I have no view either way as to the pros and cons of either type of purchase but, regarding ADV bikes, I like to have it mine as I can mod it as I feel fit.
If it is under a PCP scheme then it belongs to someone else and for that reason I will not buy one under PCP.

And, as 'Ledwardio' said above, bikes are a more personal thing - in my opinion anyway.

Having said that I recently bought a Mazda 6 under HP despite the garage wanting me to get it under PCP - I just like to own (as much as you can with HP) my own vehicles.