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Finance deals


geofferz
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Honda offered me 0% PCP or HP or Loan. I nearly jumped for the loan, but making overpayments was a right faff. So, in the end I went for a 3% personal loan from the bank. But this was to secure a top of the range bike that was so heavily discounted it actually cost me less than the lowest priced bike in the same range would now. This for the last of the 2018 bikes... The 2019s Have seen no changes.. Aside from new colours.


Might be worthwhile looking around, see if any dealership has a 2018 they're willing to make a deal on to get rid. Assuming you don't particularly need to get a 2019.

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Lots of deals to be had. If you are going the PCP route, best to put down as little deposit as possible. Then any additional worth on the GFV amount is "profit" to you.

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Lots of deals to be had. If you are going the PCP route, best to put down as little deposit as possible. Then any additional worth on the GFV amount is "profit" to you.

 

I don't think it makes a difference does it? And the downside is that if you wish to sell early you'll be in negative equity. That's where I am now 😁

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Lots of deals to be had. If you are going the PCP route, best to put down as little deposit as possible. Then any additional worth on the GFV amount is "profit" to you.

 

I don't think it makes a difference does it? And the downside is that if you wish to sell early you'll be in negative equity. That's where I am now 😁

 

You lose even more if you swapped while in negative equity if you put down a large deposit (deposit + neg equity). I suppose you would get out of neg equity quicker, but if you like to change bikes often then you should go for short PCP deals.


The GFV technically shouldn't change much depending on the deposit you put down. Your monthly payments will change, but over the life time of the policy it normally works out better to put down less deposit.

The GFV is generally mid range for predicted trade in value. So say your GFV is £4500, but when it comes to trading in, the bike is valued at £5500. If you put down a deposit of £500, then £500 is "profit". If you put down £2000 deposit then you don't see the "profit" at all.

This assumptions are of course interest free. Do the maths with the different interest rates to work it out.

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GFV is a terrible name for what's essentially the amount you need to pay off to own the bike at the end of the contract.


People get confused and think "oh wow look how high the guaranteed future value is" when really they should be saying "oh wow I paid a deposit plus all those monthly payments and look how high the final payment is".


Many think PCP will be the next PPI style misselling scandal as many are missold PCP deals without fully understanding how they work.

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You can't really compare like for like when the final payments are double in some of those, they just want folk to hire bikes and fund the second hand stock for them, I just Dont get pcp.

 

No one who does pcp wants to own the bike at the end so the balloon payment is irrelevant. These are 3 year deals like mine was - I've just done one year and thinking of changing already. I will sell privately in term - I did the same with my last car no problem. Its just about nice affordable monthlies. I'm happy to pay £150 a month forever and get new bikes when I like.

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Here's my spanner......


Is an annual mileage of 4000 miles enough? :lol:


With all those pubs to see for the challenge!!

 

You can up it but some of the above didn't let you amend online and were set at 4k so I left it at that so it's comparable. Most people don't do anywhere near that mind. Also it's only an issue if you want to give the bike back to the dealer after 3 years - if you buy it yourself it's irrelevant, and if you sell it privately its irrelevant.

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I'm sure it works for people there are enough who do it but I couldn't bring my self to pay 2k to have the privilege of renting

 

You can always do £0 up front - it just makes the monthlies more like £150. You're not renting it - you can buy it. Vs buying the fireblade cash (which I couldn't do as I haven't the savings), the 0% pcp finance deal should be very attractive - it's just a free loan.


Of course vs buying used this makes no sense, but neither does buying new.

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I paid £500 deposit for my F700, only because it allowed me then to get a deposit contribution of £1500 plus a lower interest rate.

My GFV is around the £3k mark if I remember correctly.

This is on a 4 year deal. So currently an average 4 year old F700gs from a main dealer is around £4500-£5000. Trade in I would say would be around £3500-£4500.


I treat pcp as long term renting, and if I like it I can buy it at the end. I'm not a fan of changing bikes often so long term PCP suits me. Ideally I would not have put £500 deposit down, but this would have meant I would have been some £2k out of pocket due to deposit contribution and better finance rate.

It's all about the maths!

Edited by Arwen
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You can't really compare like for like when the final payments are double in some of those, they just want folk to hire bikes and fund the second hand stock for them, I just Dont get pcp.

 

No one who does pcp wants to own the bike at the end so the balloon payment is irrelevant. These are 3 year deals like mine was - I've just done one year and thinking of changing already. I will sell privately in term - I did the same with my last car no problem. Its just about nice affordable monthlies. I'm happy to pay £150 a month forever and get new bikes when I like.

 

How does that work, I thought you weren't able to sell a vehicle you still owe finance on?

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You use the money from the sale to clear the finance. You

let the buyer know it’s on finance and pay the finance company while you have the buyer with you.

The company will let you know as soon as they have the money and the new buyer can ride off with confidence the bike is no longer under finance.

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Me I would go with the lowest payments and the closest final price to the amount to be paid .. As I freaks me out when I see OTR price is £10.000 .. total amount to be paid is £20.000 AAAAAGGHHHHHHH . Up to twice the amount to pay back ..


I remember when I was looking for my very 1st mortgage. And the lady came to the house to sort it out (long story on how I had the house b4 I paid for it ) and she wanted to arange £2K cash back on me taken out the mortgage so I asked her how much will I pay back if I say no to the cashback ..WHAT SAY NO !!!!!!! Yes no how much in the end saying no to the cash back I saved myself almost £15 grand over the 25 years

But then she showed me how much I was to pay back on the £80.000 I almost fell off the chair .. don't worrie the last 10 years the money will drop of the final price ..!!hang on so 15 years is me paying the interest on the £80k!!!! Yes .. . So After that I was so shocked at the final price on things on finance I don't have any after the 1st car than that's it never again.

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And how does the buyer know it's the finance company your talking too, you could be giving card details to talking clock

 

When I sold my 1st bike the guy didn't even check...


When I sold my car with remaining finance I gave the guy the login to blackhorse to pay it off.

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And how does the buyer know it's the finance company your talking too, you could be giving card details to talking clock

 

Loud speaker...

 

I've plenty of folks that could pretend to Mr pcp, I wouldn't buy anything with outstanding finance, old neighbour nearly lost a house after buying a car that should never have been sold and was never legally his, kept house, lost wife, one kid is now doing time, all triggered from car with outstanding finance.

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