NE150N80 Posted March 14, 2022 Share Posted March 14, 2022 Hi All. Last year I purchased my new 2021 125 bike on a 36 month PCP. The idea was that I'd probably move to a bigger bike within 6-12 months, but then my wife could continue riding the 125 for the next couple of years. Things happened faster than we thought and my wife and I no longer require the 125 - however we still have approx. 26-27months of PCP on it. And even if we look at handing the bike back at 50% of the term, the earliest I can get out of the PCP is Christmas. However, there is a young lad who's family are friends with ours, who just got his CBT and needs bike. He can't afford to buy one new, and as I have to pay the PCP anyway, I was thinking of trying to help him out by letting him borrow the 125 - he pays a bit towards the monthly PCP and pay he obviously pays for his own insurance. The bike is currently sitting doing nothing, which is a complete waste and I'm just trying to do a good deed. The advice I need from you fine people is to think of any pitfalls/illegalities etc. that I'm not thinking of. I don't want to commit insurance fraud - I just want to help the kid out. So again, the PCP is in my name and my address. The bike will be stored at his address, so obviously he will need his own insurance registered at his address as the primary rider. Is this doable? Is this a really bad idea? Any help will be appreciated! Quote Link to comment Share on other sites More sharing options...
KiwiBob Posted March 14, 2022 Share Posted March 14, 2022 Sounds like a bad idea to me. Quote Link to comment Share on other sites More sharing options...
Bender Posted March 14, 2022 Share Posted March 14, 2022 You will need to check the conditions included with your pcp loan. There will likely be a mileage cap, what's the condition going to be like when kid is finished, do you have gap insurance for the very likely fact it will be written off stolen. Sounds like a good idea but in practice it could be a mare. Quote Link to comment Share on other sites More sharing options...
Stu Posted March 14, 2022 Share Posted March 14, 2022 Bad idea in my opinion! I would be weighing up the options as to get a bank loan to pay the full lot off and then sell the bike and pay the loan back What happens if he writes the bike off and the insurance don't pay out for it? What happens if the bike is trashed and not worth anything at the end of the PCP? Too risky IMO 1 Quote Link to comment Share on other sites More sharing options...
bonio Posted March 15, 2022 Share Posted March 15, 2022 It's a truly kind idea. But you need to be happy that you can still be friends with your friends even if something goes wrong and the bike gets trashed with no money back to you, and the PCP residual still yours to settle. If you're ok with that outcome, then it's probably ok. Even then then it might be a good idea for you to buy the insurance in the lad's name (or if you're happy with the risk to your insurance record, in your name with them as named rider) as at least you can make sure you get the level of cover you need, and it might give you more traction with the underwriters should you have to claim. 2 Quote Link to comment Share on other sites More sharing options...
techniques Posted March 15, 2022 Share Posted March 15, 2022 Opinions from someone who started biking in Jan 2020. 125cc sell like hot cakes these days. There has been a bike inflation since summer 2020 because of Covid. Production delays of new bikes + general demand for the used market skyrocketing. I think it's going to end this year when people start spending money on holidays like they used to, thanks to restrictions being lifted. March-April is the start of the season. People have recovered from Christmas and are ready to start spending again. If I had a bike sitting in storage and not in use, I'd be trying to sell it (privately) ASAP. Now is the time. If you want to help the young guy out, lend him 50% of the cash for his first £1000 USED bike. If he doesn't have £500 to puts toward a bike, he simply can't afford, because it only gets worse after that. 2 Quote Link to comment Share on other sites More sharing options...
KiwiBob Posted March 15, 2022 Share Posted March 15, 2022 6 minutes ago, techniques said: Opinions from someone who started biking in Jan 2020. 125cc sell like hot cakes these days. There has been a bike inflation since summer 2020 because of Covid. Production delays of new bikes + general demand for the used market skyrocketing. I think it's going to end this year when people start spending money on holidays like they used to, thanks to restrictions being lifted. March-April is the start of the season. People have recovered from Christmas and are ready to start spending again. If I had a bike sitting in storage and not in use, I'd be trying to sell it (privately) ASAP. Now is the time. If you want to help the young guy out, lend him 50% of the cash for his first £1000 USED bike. If he doesn't have £500 to puts toward a bike, he simply can't afford, because it only gets worse after that. He can't sell it as he doesn't own it! .. He's got it on PCP! Quote Link to comment Share on other sites More sharing options...
Stu Posted March 15, 2022 Share Posted March 15, 2022 34 minutes ago, KiwiBob said: He can't sell it as he doesn't own it! .. He's got it on PCP! Yes you can! Providing you pay the full balance off once sold Quote Link to comment Share on other sites More sharing options...
KiwiBob Posted March 15, 2022 Share Posted March 15, 2022 (edited) 2 hours ago, Stu said: Yes you can! Providing you pay the full balance off once sold You have to settle before you sell! Edited March 15, 2022 by KiwiBob Quote Link to comment Share on other sites More sharing options...
Stu Posted March 15, 2022 Share Posted March 15, 2022 13 minutes ago, KiwiBob said: You have to settle before you sell! No you don't you can settle at the time of sale. This is what happens if you trade a vehicle in that's on pcp As long as its paid they don't really care Quote Link to comment Share on other sites More sharing options...
KiwiBob Posted March 15, 2022 Share Posted March 15, 2022 1 hour ago, Stu said: No you don't you can settle at the time of sale. This is what happens if you trade a vehicle in that's on pcp As long as its paid they don't really care https://www.moneyexpert.com/car-finance/sell-car-with-outstanding-finance/#can-i-sell-a-car-on-an-outstanding-personal-contract-purchase-pcp Quote Link to comment Share on other sites More sharing options...
fullscreenaging Posted March 16, 2022 Share Posted March 16, 2022 (edited) My ex brother in law had a gixer on finance years ago. He wanted to get rid of it but was far from mid term. He sold it privately and rang his finance company for a settlement. Paid it and kept the balance. (Which wasn’t much) It happens, and as long as you pay it off then no one is the wiser. EDIT: He informed the guy that bought it that it was on finance and sorted it all out in front of him. Edited March 16, 2022 by fullscreenaging 1 Quote Link to comment Share on other sites More sharing options...
Stu Posted March 16, 2022 Share Posted March 16, 2022 19 hours ago, fullscreenaging said: My ex brother in law had a gixer on finance years ago. He wanted to get rid of it but was far from mid term. He sold it privately and rang his finance company for a settlement. Paid it and kept the balance. (Which wasn’t much) It happens, and as long as you pay it off then no one is the wiser. EDIT: He informed the guy that bought it that it was on finance and sorted it all out in front of him. And that's the point I'm making! They don't care as long as you pay the finance off. 1 Quote Link to comment Share on other sites More sharing options...
peatear Posted March 17, 2022 Share Posted March 17, 2022 Echoing others, don't. It isn't worth it in the long run if anything goes bad. As it isn't like you could make your own 'contract' with them of your own to cover yourself if anything bad did happen, and it is probably against the PCP/other contract you have yourself with the dealer. On 16/03/2022 at 03:37, fullscreenaging said: My ex brother in law had a gixer on finance years ago. He wanted to get rid of it but was far from mid term. He sold it privately and rang his finance company for a settlement. Paid it and kept the balance. (Which wasn’t much) It happens, and as long as you pay it off then no one is the wiser. EDIT: He informed the guy that bought it that it was on finance and sorted it all out in front of him. I did EXACTLY this. Bike on finance, private sale. They knew it was on finance and I was paying it off with what they paid me. I made nothing as I sold it for exactly what I owed on the finance. Yes you aren't /supposed/ to do it this way. However like others say, they don't care so long as they get their money. And don't delay in paying it off. 1 Quote Link to comment Share on other sites More sharing options...
techniques Posted March 17, 2022 Share Posted March 17, 2022 4 hours ago, peatear said: I did EXACTLY this. Bike on finance, private sale. They knew it was on finance and I was paying it off with what they paid me. I made nothing as I sold it for exactly what I owed on the finance. Yes you aren't /supposed/ to do it this way. However like others say, they don't care so long as they get their money. And don't delay in paying it off. This was my thinking. Years ago, I financed my car with Close Brothers Motor finance and when I asked if I could sell the car they said yes, providing I settle the full amount. If you want to be on the safe side, you should get the seller to just pay them directly. I don't think you'll run into any issues if you pay off the finance with the money from the sale. Quote Link to comment Share on other sites More sharing options...
KiwiBob Posted March 17, 2022 Share Posted March 17, 2022 47 minutes ago, techniques said: This was my thinking. Years ago, I financed my car with Close Brothers Motor finance and when I asked if I could sell the car they said yes, providing I settle the full amount. If you want to be on the safe side, you should get the seller to just pay them directly. I don't think you'll run into any issues if you pay off the finance with the money from the sale. It doesn't matter what your "thinking" is you can not legally sell a vehicle that you have on PCP without settling the finance first! Quote Link to comment Share on other sites More sharing options...
fullscreenaging Posted March 17, 2022 Share Posted March 17, 2022 We all know that. The point is. It happens. If you pay the debt off then there is no issue. It becomes a problem if you don’t pay the debt off. The poor sod that bought the bike/car will end up with it being confiscated, eventually. Again this also happens. 1 Quote Link to comment Share on other sites More sharing options...
techniques Posted March 17, 2022 Share Posted March 17, 2022 5 hours ago, KiwiBob said: It doesn't matter what your "thinking" is you can not legally sell a vehicle that you have on PCP without settling the finance first! Actually, In these situations, the legality is what doesn't matter to people. On both sides. I hate to disappoint you, but that's the reality. 1 Quote Link to comment Share on other sites More sharing options...
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