Trading bike in during PCP term

[Arwen]

So I am having to get rid of my BMW and swap it for something much lighter - mostly doctors orders. ( I have been damaging the muscles between my ribs getting it of it's stand and manually moving it around. This has meant for the past 6 months I've been struggling to breath normally without being in pain )

I've been mostly looking at the BMW G310r and the Kawasaki Z400. Unfortunately I have not test ridden either, as on the 4 occasions I was going to, there was torrential rain all day and I chickened out

However I have spotted a 2017 G310r up for sale, at a rather good price. But I have no idea how trading in a bike halfway through it's pcp term for a bike that costs substantially less.

Can anyone give a a dummies guide?

[elizabethf]

How much does the BMW weigh out of interest?

Im guessing seeing as you are still on PCP your best best is to go into the dealer and see what they have on offer for swaps, and they can update your financing accordingly.

[fullscreenaging]

You can trade you 'old' bike in against the 'new' one. The dealer will give you a figure for your old one and then pay off the remaining finance. If you have anything left over then you can put that as a deposit for the new one.

Just haggle and don't tell the real reason you want to change bikes. Try and find a few bikes from different dealers and play them off against each other to get the best deal for you.

[Arwen]

How much does the BMW weigh out of interest?

 

Around 210kg.

I'm pretty sure I'm out of negative equity on the BMW, so any "extra" I have from trading it in after paying off the finance would go to the new bike... Is that correct? I'll ask the finance/dealer too, but was wondering if anyone had done similar.

[Gerontious]

Its probably safe to say that people do this all the time. they buy a bike, realise its not really for them and trade it in. As PCP has gained in popularity it seems certain to me that many bikes bought in this way will have been changed like this. My local dealership is full of very very new bikes with very low miles on them and I would suggest not many of them were bought outright. most on either normal finance or PCP.

See what the dealer has to say.

[geofferz]

You can sell it privately too - I did that with my car midterm. I just got the buyer to pay off the finance on the car via the portal on my laptop. Legally you could just take the cash and sort it yourself I guess but they buyer would be dumb buying something with outstanding finance on it as they don't legally owe it - the bank does.

[Beansie]

It’s easy to do as the dealers want to sell you a bike at the end of the day, try and get a trade in price on your bike before you reveal what you owe as the dealer will try and match it when you could be in positive equity if that makes sense.

[ShouldKnowBetter]

Trading in before your PCP term is up is doable, but you need to be aware that you could be in negative equity, depending how much deposit you paid, how long through the term you are etc. You may end up out of pocket, or not.

I’m not sure about bikes, but I have done this a few times with cars (the financing principle is the same) and have had to suck up the negative equity once (it was only a few hundred quid and on balance I took the hit).

It was explained to me (by my car salesman brother in law) that the depreciation on a car is not straight line, but your repayments are. Therefore, trading in before the end of the term means your bike may have depreciated quicker than your repayments. Also, the “Guaranteed Resale Value” at the end of the term is always a low offer meaning the car would actually (usually) be worth more than the balance you owe. If a customer hands it back, or accepts the quotes resale value then the garage makes a profit on the trade in.

Typically, with cars, once you are more than 50% through your PCP term you should be about break-even on debt vs trade in value. If it is before halfway through, you’re probably in negative equity.

Disclaimer: this is just my understanding and what I’ve been told, might be wrong and not sure if it is exactly the same for bikes