Africa Twin for £25/ month - surely this is the WORST finance proposal ever imagined!?!

[TomBoyNI]

This just popped up on my Facebook feed and on reading it I have to share it. Surely this is the worst finance proposal ever?

Surely getting a low rate loan and paying the bike off would be more sensible than those crazy deposits and final payments or a more traditional PCP?

I can't make sense of this why someone would effectively want to finance £900 over 3 years and lump sum it twice.

The dealer should be embarrassed I can only figure they are going to get a load handed back with stupid low mileage and big lump sums paid into their accounts.

Disgraceful in my humble opinion.

CRF1000L Africa Twin (PCP) Red - Representative Example

Cash Price £10,849.00
Total Deposit £3,750.30
Total Amount of Credit £7,098.70
Purchase Fee (Included in the Final Payment) £0.00
Total Amount Payable £10,849.00
Initial Payments £25.17
35 Monthly Payments £25.00
Optional Final Payment £6,198.53
Duration of Agreement 37 months
Representative APR 0.00% APR
Interest Rate (Fixed) 0.00%
Finance is based on annual mileage of 4000 miles with an excess mileage charge of 4.79p per mile. Credit provided by Honda Finance Europe Plc Cain Road, Bracknell, RG12 1HL. Honda Finance Europe Plc is authorised and regulated by the Financial Conduct Authority, Financial Services Register number 312541.

[Philiptigerrice]

So - in effect, renting it for £129 a month (£25x36, plus deposit, over 36 months).

I don't know.... A bus pass near me, can be that much for a month - and there's nowt to show for that at the end either! Lol

If you wanted it to do a short commute to work on, say 500 miles a year, and do 2 or 3 weekend blasts a month during the summer, and you have the money - why not?



I don't think PCP's suit adventure bike riders though,those who love to farkle, get occasionally dirty, and do any sort of touring.


I'd consider a PCP deal in a few years time, if I decide to change out my 2018 GSA (same as yours I think tomboy) (thumbs)

But, I do about 12,000 to 15,000 miles a year - and there's no PCP deal about that can cope with that kind of mileage....

All depends on what you want really...

[crofty]

If I understand this correctly, You pay 3750 down and 900 over 3 years making a total 4650 and for that you get a new Africa twin to have the use of for 3 years and then hand it back with 12k on it. 1550 depreciation a year. I don,t see the problem, if you bought it new would it be worth any more than the 6198?

[Boggs]

It popped up on my f/book feed as well and i thought exactly the same,im old fashioned and would rather be paying off a straight forward low rate loan or even better a 0% deal.I think PCP is great if you want something that you can't really afford,if you can't pay the final payment off and you hand it back,you've got nothing at all,your initial deposits gone so youre probably gonna start another PCP deal,each to their own but its not for me.

[Oop North John]

would rather be paying off a straight forward low rate loan or even better a 0% deal

This is a zero percent deal

Three things against it for me:

Only 4000 miles a year
Not mine so shouldn't modify it
Don't want an Africa Twin

[uturntony]

Seen it on Facebook earlier myself and i too thought it was a daft deal. 4K/year? I have just done 4.3K in two weeks and got loads more to do this year.

[MrIFan]

Surely the mileage penalties would not apply if you made the final payment and kept the bike?

[TomBoyNI]

I think for me the 4K miles is number one killer and the second is the deposit.

I get that it works out at £129 a month, however it isn't actually £129 a month. It needs a down payment of £4K.

£4000 is an awful lot of money in my opinion to put down on something you probably will only have for 3 years with a limit of 111 miles a month. That's about a decent run every 2 months!

£129 is a much more affordable figure, still with terrible miles and you get to keep your 4K in the bank.

I think that using the £25 / month is just poor sportsmanship.

Then remembering if you do want to keep the bike you need another £7k almost.

I bought my last bike on PCP - F800GSA, £99 a month, with 8000 miles, it was a zero miles ex demonstrator. That to me was a good PCP.

[Tonibe63]

It works for some but not for others. My Wife's MT07 is 2 years old and has 4k miles on it, my GS has 53k miles on it but it is now 10 years old so in reality the mileage limit is not a long way out. You blokes who do steamship miles, like spending lots on farckles and then throw it at the scenery are not normal .
A cash buyer who has no trade in, keeps a bike for 5 years and does their own servicing is not a great money earner for a manufacturer or dealer and I think eventually will all but disappear as PCP deals become more attractive. Let's face it the younger generation want the best for the lowest monthly cost and they are the future ....... not us old fossils who begrudge giving a fart away.

[Richard Simpson]

The motorcycle trade regards 3000 miles a year as 'average' for a big bike. 7000 miles pa is 'high mileage.'

PCP = rent a bike off the dealer so you can ride it to the dealer on every sunny Saturday in the next three years, and stand around looking important while you drink a nasty cup of coffee.

But, for god's sake, don't use it in the winter to ride to work.