PCP restrictions

[Elle]

I was just catching up on a few folk who shipped their bikes over to the USA for a 3-4 week vacation.
If the person is on ABR, I hope you don't mind the quotation, but it's useful information:

When filling in the USA bike insurance paperwork I did get a nasty surprise. One of the questions relates to outstanding finance on the bike. A quick call to BMW Finance confirmed how much was owing but also threw a rather large spanner in the works.
It transpires that if you have your bike on a PCP you are "not allowed to take it out of Europe sir". , in fact
I had a chat with one of their legal guys & he confirmed the same. "No sir. Not anywhere out of Europe".
Obviously my next questions were how would they know & what would they do if I did take it to America.
To cut a long story short there is potential for the finance company finding out & they have the right to ask customs to impound the bike, claim it back & I would forfeit her.

Now, I don't know anything about PCP and maybe it's specific to BMW Finance but should you have such an arrangement and plan to travel beyond the EU, check the rules.

Must admit, I find it quite ironic. BMW does a wonderful job of promoting the "see the world on a BMW" marketing, then sticks two fingers up to anyone who tries! :whistle:

[Nigel]

But then reading an article about "most" BMW owners they get a bike on PCP and change it every 18 months, so they are reliable and probably don`t do many miles on them :whistle:
I said "most" not all

[Fried Egg Sandwich]

Maybe you should start a thread to see how many other examples of irony we can find in the biking world..... :unsure:

[steve172]

You could see the world on a BMW if you own it outright though, but whilst the bike still has remaining outstanding finance against it then it is still partly owned by the finance company and you do not have right to full ownership until the finance is settled. PCP (personal contract plan) is a form of finance, just like hire purchase.

If you were involved in an accident, and the bike was written off then the insurance money would go to the finance company, or be split etc (I'm not 100% sure on the specifics but have had a car on finance before).

The same is not true for a bike bought with a personal loan, as the loan would not be secured against the bike and outright ownership is by you.

[boristhebold]

You could see the world on a BMW if you own it outright though, but whilst the bike still has remaining outstanding finance against it then it is still partly owned by the finance company and you do not have right to full ownership until the finance is settled. PCP (personal contract plan) is a form of finance, just like hire purchase.

If you were involved in an accident, and the bike was written off then the insurance money would go to the finance company, or be split etc (I'm not 100% sure on the specifics but have had a car on finance before).

The same is not true for a bike bought with a personal loan, as the loan would not be secured against the bike and outright ownership is by you.

I can see that but what is wrong with taking a PCP'd bike elsewhere in the world PROVIDED you have sufficient cover? Other than it being a BMW clause. You'd imagine BMW would ask people to contact direct for further information IF they want to travel further than the EU. That should cover all bases and still show a hint of worldly travel savvy

[samuelstarr]

Maybe I,m wrong but does'nt outstanding finance relate to missed payments only.?

[mark1150]

Maybe I,m wrong but does'nt outstanding finance relate to missed payments only.?

Not as far as I'm aware, outstanding means just that.
EG If the bike costs £12000 and you've paid off £1000, the outstanding finance would be £11000, plus interest costs.

[Redmurty]

PCP is basically renting your bike and if you think about if you took it to the states and did not bring it back for what ever reason they deem they would be out of pocket, and they would have to bear the cost of bring it back.

cheers Spud

[boatman]

Talking of BMW and conditions
If you buy a new bmw adventure type bike in States or Canada Warranty insurance cover no probs
If I buy a new BMW 1200 adventure and ship it to ride in the states / Canada they will NOT cover any warranty claim
In spite of the fact it comes off the same production line in Germany and would have full BMW service history

Buy a new one / keep my old one. It's a no brainer they can go hang

[boristhebold]

PCP is basically renting your bike and if you think about if you took it to the states and did not bring it back for what ever reason they deem they would be out of pocket, and they would have to bear the cost of bring it back.

cheers Spud

Easy to factor that into an agreement so that the odd 1 or 2 with the finances to ship their GS to a far flung place are also responsible for its return...or face the wrath of BMW in court...simples.