How would you like to pay, sir?

tricol · Post by **tricol** » Mon May 30, 2022 9:17 am

Good morning.

So, lately I have been thinking about what bike is coming next after the Trident. Perhaps I bit late to change this year with long delivery times still an issue. I know what I want to go for, a Street Triple, or an MT09, something of that type. Would I buy new? Probably. But I wouldn't rule out buying second hand. It would need to be immaculate and low mileage. Anyway, I currently have the Trident on PCP. I know, not the wisest choice. However it is my first jump into new bike ownership. I put down a 20% and paying around £100 a month leaves me with a minimum GFV of around £3700 or so. It's that final payment I want to do without next time around. So, do I go HP through a dealer, or get a decent rate bank loan? I'd still plan to put down a chunky deposit, maybe 30% or so.

I understand people don't always want to divulge their spending habits, and I come from a very bad history (and a very long story) of being in big debt. Well, that is very much in the past now and I'm much better with my money. I'm not in the position to drop a case of cash on the dealers table.

Thoughts?

Post by **weeksy** » Mon May 30, 2022 9:20 am

I'm happy to divulge.

I've at times gone PCP but my smcr is on finance as it's not that much different if you add a year on instead. I'll expect to clear before time anyway.

PCP does work well though due to smaller payments

dern · Post by **dern** » Mon May 30, 2022 9:21 am

Cash, second hand or I don't buy it. There's so many nice condition used bikes around it makes no sense to me to buy new.

Post by **wull** » Mon May 30, 2022 9:29 am

PCP which I’ve done for quite a few bikes now, I’ve done HP and buying outright as well, just depends on budgets at the time.

Post by **MrLongbeard** » Mon May 30, 2022 9:43 am

Depends on the rate you can get from your bank.
We've just taken a £10k loan over 3 years @ 2.9%, buying a year old bike with less than 1000 miles on the clock for a £1000 saving over new, well assuming the bike is straight when we go and have a look on Friday.

I've done cash only, cash mostly, loans and HP (never PCP though) it all comes down to what length of repayment you want, how much you can pay a month, how much you have sitting in the sock drawer, and who offers the best rate.

Post by **KungFooBob** » Mon May 30, 2022 9:48 am

If I don't have the cash, then it's always a personal loan, for me they're always a much cheaper rate. I've never had one run it's full term, they always get paid off early.

Last one was 2.99%.

Post by **Supermofo** » Mon May 30, 2022 9:52 am

With the Suzuki I got a bank loan as it was much cheaper than the dealer HP.

Usually I HP bikes. Never done PCP as I tend to keep bikes and cars a while

Yorick · Post by **Yorick** » Mon May 30, 2022 10:00 am

I've paid cash for last 20 years. But may have chosen PCP or summat similar for a nicer car back in the day.

Post by **The Spin Doctor** » Mon May 30, 2022 10:26 am

I haven't bought a bike on any kind of credit for 40 years. The closest I got was twenty years ago when I paid a holding deposit on a credit card, as it was a snap purchase.

tricol · Post by **tricol** » Mon May 30, 2022 10:41 am

Interesting, thanks for the replies. Bank loans certainly have lower advertised rates than dealers. Halifax for example are showing 3.9% on loans over £7500. But it has been known to be higher depending on personal circumstances. Dealer was 7.9% for the Trident.

Post by **Cousin Jack** » Mon May 30, 2022 11:16 am

0% finance or I pay cash. I am fortunate that I can do that, but even when I was young and poor I really hated paying interest, and would usually save up rather that HP/PCP or bank loan. Bank loan is usually cheapest, but I have always been wary. I have seen too many people take out loans/finance deals that they can afford, and then the world turns, things change, and they can't afford it and are on a very slippery slope.

Taff · Post by **Taff** » Mon May 30, 2022 11:34 am

I tend to keep vehicles for a long time so PCP is not an option that I've really considered. I'll normally be looking at either a loan, which have been cheap for quite a long time or a 0% credit card.
That's how I bought my eMTB last year £6k spend limit, 0% for 24 months on the card and it gives me best flexibility to pay it off. I set the standing order at the minimum it would take to pay it off in 22 months and each month I repay extra - as much as I can afford - and it'll be cleared in well under a year

Post by **KungFooBob** » Mon May 30, 2022 11:40 am

I've bought stuff on 0% credit cards and it worked well, only be aware that the vendor might charge a fee to pay by credit card (often a couple of percent) or the credit card company might charge you a small percentage to transfer the money into a current account.

dern · Post by **dern** » Mon May 30, 2022 11:41 am

dern wrote: ↑Mon May 30, 2022 9:21 am Cash, second hand or I don't buy it. There's so many nice condition used bikes around it makes no sense to me to buy new.

By the way, if I needed it rather than simply wanted it I'd use a bank loan. Have done that with cars in the past where I can't be arsed to rely on a shitter to get to work.

Post by **KungFooBob** » Mon May 30, 2022 11:57 am

I've just had an email form my local Katoom stealership, Superduke R & Evo's are on 0% at the moment, so buy one of them

Post by **Rockburner** » Mon May 30, 2022 12:19 pm

dern wrote: ↑Mon May 30, 2022 9:21 am Cash, second hand or I don't buy it. There's so many nice condition used bikes around it makes no sense to me to buy new.

Same. Would also do the same if buying new.

Post by **Count Steer** » Mon May 30, 2022 12:41 pm

Until recently I'd only ever paid cash for bikes and cars, new or old but the latest one had a good PCP offer on so I took it. Even then I did it so there was only a couple of £k left for the balloon payment after 2 years, which I paid and kept the car. Might do the same on the other car if the offers still a good one.

(I did take the 0% finance on a new boiler and the Amazon - spread payments over 6 months - offer on something. Even with the poxy interests rates on savings, 0% offers are a no-brainer really).

Post by **Skub** » Mon May 30, 2022 1:21 pm

I've never taken finance on anything outside of a mortgage. If I can't afford to buy something outright,I don't buy it. This is very probably an old fashioned method of operation and undoubtedly there are deals out there to better suit the individual.

To much of my Da in me,I suppose. He even waited until he had the cash before he bought his house,never borrowed a penny in his life.

tricol · Post by **tricol** » Mon May 30, 2022 1:45 pm

Fair enough if you can afford to pay cash for anything other than a mortgage. Certainly a priviledged position in 2022, especially for many under the age of 40.

dern · Post by **dern** » Mon May 30, 2022 1:57 pm

tricol wrote: ↑Mon May 30, 2022 1:45 pm Fair enough if you can afford to pay cash for anything other than a mortgage. Certainly a priviledged position in 2022, especially for many under the age of 40.

That's not the point of saying I'd pay in cash... what I meant by that is that I'd only buy a bike that I didn't need if I had the cash, not that I've got a load of it sitting around. Taking out finance on something I can't afford to clear by selling it if circumstances change is financial stress I don't want. Also, if you buy with finance you will ultimately pay more. At the very least I'd recommend only financing part of the bike so that in most cases it will always be worth more than the outstanding loan and that includes the pay out on the insurance if it's nicked or crashed.

Basically, It's not about being flush, it's about being more risk averse having had experience when things go shit shaped very very quickly and without warning

Mind you, as per the question... this is only what I do

revtothelimit - motorbike forum

revtothelimit - motorbike forum

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