PCP vs. 0% purchase card.

[Gerontious]

Its either the "never never" or the "never ever"

 

or buy outright.

 

decisions decisions.

 

In normal circumstances this is the time Honda will be discounting current 21MY bikes as the 22MY are about to arrive. but sadly, there is nothing normal about the current circumstances.

 

but, the 22MY are still about to appear so who knows.. could be a new 850 NC (apparently) just when you thought decision making was difficult enough!!

 

my local dealership has two in stock. red or blue.

Edited October 8, 2021 by Gerontious

[Bender]

11 minutes ago, PaulCa said:

 

When compared to HP it has advantages.  Instead of financing the total cost of the bike/car, you are only financing the depreciation.   So at the end of the term you "should" be able to return the bike/car and walk away.  You have paid for the depreciation )with front loaded stacked interest!) with the monthly.

With HP you are financing the whole total cost, so you pay interest on more principle.

 

The downside with both is you don't own the car until the agreement is settled, but as mentioned this has pros and cons.

Still don't get it, might as well just rent  

 

Last van I looked at lease before buying, they wanted more in 3yrs for a shity small van with crap engine, I was basically buying the van for them. 

[PaulCa]

59 minutes ago, Bender said:

Still don't get it, might as well just rent  

 

Last van I looked at lease before buying, they wanted more in 3yrs for a shity small van with crap engine, I was basically buying the van for them. 

 

Yep.  Which is why I'm after paying for it on 0% interest personal finance rather than stealer PCP deals.

 

If you have the money to buy cash, sure, if you don't PCP offers a way to only pay finance on part of the total price, while keeping the value after 3 years un-interested.

[Stu]

0% all the way! 

 

I got a new bike in June and got a bank loan at 2.9% over 4 years 

 

I never thought of doing the 0% credit card transfer thing but then I don't think I would have wanted to put that amount on a card anyway

[Bender]

39 minutes ago, Stu said:

0% all the way! 

 

I got a new bike in June and got a bank loan at 2.9% over 4 years 

 

I never thought of doing the 0% credit card transfer thing but then I don't think I would have wanted to put that amount on a card anyway

We've bounced between 0% on cards in the past, if you have a decent  limit they are always throwing 0% offers at you so you can usually switch it to another for the transaction switch % which is always lower than any rate you can get from a bank

 

[Stu]

Just now, Bender said:

We've bounced between 0% on cards in the past, if you have a decent  limit they are always throwing 0% offers at you so you can usually switch it to another for the transaction switch % which is always lower than any rate you can get from a bank

 

 

I have a decent limit on the card but I would have had to raise it a little for the BM and I wasn't willing to do it to be honest 

[Bender]

4 minutes ago, Stu said:

 

I have a decent limit on the card but I would have had to raise it a little for the BM and I wasn't willing to do it to be honest 

You need another one to shove it to if you want to extend the 0% which technically isn't anymore  

 

It's what ever you feel happy with, I used 2.4% loan for van and overpaid. 

[Stu]

Just now, Bender said:

You need another one to shove it to if you want to extend the 0% which technically isn't anymore  

 

It's what ever you feel happy with, I used 2.4% loan for van and overpaid. 

 

Yup And I couldn't be arsed to shove the money around either  

 

Not only that I have one card and only use it when we go away on the bike to pay for hotels and fuel then just pay it off when the bill comes in  

 

Or for big purchases to give us that bit of protection 

[Bender]

Just now, Stu said:

 

Yup And I couldn't be arsed to shove the money around either  

 

Not only that I have one card and only use it when we go away on the bike to pay for hotels and fuel then just pay it off when the bill comes in  

 

Or for big purchases to give us that bit of protection 

Yup card protection is best bit, just about everything of importance is stuck on ours and paid off, specially hols  

[Stu]

Just now, Bender said:

Yup card protection is best bit, just about everything of importance is stuck on ours and paid off, specially hols  

 

Its a sad state of affairs when you have to use the credit card to get buyer protection! 

[Bender]

7 minutes ago, Stu said:

 

Its a sad state of affairs when you have to use the credit card to get buyer protection! 

Yup, but it works  

[SometimesSansEngine]

3 hours ago, PaulCa said:

 

I believe you start paying interest on the balance from that point on  + the late payment fees of course.

 

I will manage the payments carefully.  DD for the minimum from a specific account topped up from my current account.  So I even have a reserve of payments.  I also have the reluctant position of settling up cash.  I just don't want to buy the bike cash outright as it lessens my ISA saving reserves more than I would like.  If I loose my job for some reason and end up permenantly unemployed I have a plan for reducing my monthly outlay over 6 months, which would involve selling the bike and the car, but I need the cash reserves to buy time for that.

 

Maybe worded poorly by me (so sorry if you are getting this point), but I meant you will pay interest on the FULL amount you originally borrowed from that point. Not on what is left at that point. Interest is always calculated on the original rate borrowed until fully paid off.

[MikeHorton]

I guess it depends on your circumstances and the deal. I got £500 off with the pcp deal with Honda on my AT 3 services a free tracker with 12months subscription. With the Honda pcp you can over pay on the monthly payments which I'm doing slightly. I'm thi ling with your circumstances the 0% card is the way forward. Just make sure you can clear it in the interest free period as the 0% deals are getting fewer now and with all the financial uncertainty it's strange times. You have picked a great bike there!

 

[daveinlim]

2 things to consider. 

 

1. Will honda accept payment by credit card. For my first bike a cb125f they would only take £200 by credit card.

 

2. Are you sure you can repay the full value of the card debt before the 0%.

If not then the interest rate will go up to 20% or more.

If you go to transfer the balance after your 0% rate ends you may not find another provider to do another 0%.(imagine another credit crunch or rates soaring up).

If you do find another 0% card then they will probably charge 2-3% transfer fee. 

 

 

[Liveware Problem]

8 hours ago, SometimesSansEngine said:

 

The rules do have get outs, but since 2018 you can't charge 'more' to pay by card - not sure if that would prevent this nowadays. Simplistically speaking, any fee to pay should apply to other forms of payment too

 

 

Just to clarify - they meant they don't backdate the 20% interest not added in other months, BUT you do pay 20% interest on the original transaction value? (which needless to say, would be a lot in this case)

 

Ahh, well this was in 2017

 

@Mississippi Bullfrog @Bender Sure cash is best but for me at least the choice was saving up for years and years, without having a bike, vs. New bike on PCP right away (which I'm also able to use to generate additional income).

[Bender]

5 hours ago, Liveware Problem said:

 

Ahh, well this was in 2017

 

@Mississippi Bullfrog @Bender Sure cash is best but for me at least the choice was saving up for years and years, without having a bike, vs. New bike on PCP right away (which I'm also able to use to generate additional income).

It's what ever is best for you, plenty of folk do it, I just wouldn't  

[Mississippi Bullfrog]

I started with a well worn ex training CG125 which got me in and out of Liverpool several times a day on roads awash with diesel. It wasn't pretty, it wasn't fast, but it was cheap and it was reliable and above all else it was mine 

 

It did me when I was skint and needed transport for work. It also taught me how to do all my own maintenance.

 

I think a lot of my mates who go straight for a new bike on the never-never with servicing included miss out on the joys of running a motorbike. 

 

Everyone has different choices but the assumption that it has to be new means there's a world of experience missed out.

[billy sugger]

I've only ever had one brand new bike, a kawasaki KC100. It got written off before I had even run it in, or even made the first HP payment. I was on the way home from work and a dog ran out in front of me and it was too close to the bike to do anything - it was like hitting a brick wall. Ever since I have gone for second hand, and paid cash

[Liveware Problem]

4 hours ago, Mississippi Bullfrog said:

I started with a well worn ex training CG125 which got me in and out of Liverpool several times a day on roads awash with diesel. It wasn't pretty, it wasn't fast, but it was cheap and it was reliable and above all else it was mine 

 

It did me when I was skint and needed transport for work. It also taught me how to do all my own maintenance.

 

I think a lot of my mates who go straight for a new bike on the never-never with servicing included miss out on the joys of running a motorbike. 

 

Everyone has different choices but the assumption that it has to be new means there's a world of experience missed out.

 

Thats fair enough.

 

I think I should point out that a lot of PCP deals don't actually include servicing..

[Steve_M]

17 hours ago, Bender said:

I never got pcp, always just bought, never using the finance offers pushed by dealers, I used to sell finance, bigger commission from that than the sale. 

I once bought a car with HP. Put it in my wife’s name. We separated six months later, leaving me with, effectively, negative equity in that car and unable to sell it because I was skint and couldn’t afford to pay the outstanding balance. Since then I’ve either bought cash or had a personal loan from my bank. I feel more in control of my situation this way.

[Bender]

I think with most things it depends what they have In a deal to play with and more importantly how keen they are for a sale. 

 

Fiat were willing to extend warranty by 2 yrs to match Nissans 5 or give me 3yrs don't pay a thing for servicing. 

[PaulCa]

6 hours ago, Mississippi Bullfrog said:

I started with a well worn ex training CG125

 

I had a CG125 as my first geared bike, following 3 scooters.  I lucked out and got one in mint condition with only 2500 miles on it.  Usual story, someone bought it to learn on, got their test, traded up.

 

It doesn't do anything special, but it's reliable.  I completed my first full service on it.  Oil, (no filter! you have to take the engine part to get to the centrifugal separator they use), plugs, brake pads.  I think hit the wheels with chrome polish and gave the bike a full detailing.

That night some drunk teenagers came into my front garden, snapped the steering lock and wheeled it into a near by waste ground, pulled the fuel line off the tank and set fire to the bike.  It still to this day makes me wary of cleaning the bike too well!  

[billy sugger]

5 minutes ago, PaulCa said:

 

I had a CG125 as my first geared bike, following 3 scooters.  I lucked out and got one in mint condition with only 2500 miles on it.  Usual story, someone bought it to learn on, got their test, traded up.

 

It doesn't do anything special, but it's reliable.  I completed my first full service on it.  Oil, (no filter! you have to take the engine part to get to the centrifugal separator they use), plugs, brake pads.  I think hit the wheels with chrome polish and gave the bike a full detailing.

That night some drunk teenagers came into my front garden, snapped the steering lock and wheeled it into a near by waste ground, pulled the fuel line off the tank and set fire to the bike.  It still to this day makes me wary of cleaning the bike too well!  

Bleeding scrotes