pcp balloon payment

[Elmer J Fudd]

PCP is not all bad.

I bought a Honda VFR on PCP in 2014, what I did was to put enough money into an ISA each month to pay off the balloon payment at the end of the term. This also acted a rainy day fund so some payments to the ISA were less and some more.

At the end of the term I decided not to keep the bike, but traded it in against a Triumph. The Triumph dealer gave me a good trade in figure and then sorted out the final payment to Honda and I still have the lump sum in the ISA. The merry go round is still going round and you only really take on the initial deposit and if you just hand it back.

Financially it may be more expensive than saving up the cash, but the monthly payments are quite small.

Horses for courses, but working well for me as I can already afford to pay the balloon figure on the Triumph if I decide to keep it in another year and a bit.

[johnnyboxer]

PCP is not all bad.

I bought a Honda VFR on PCP in 2014, what I did was to put enough money into an ISA each month to pay off the balloon payment at the end of the term. This also acted a rainy day fund so some payments to the ISA were less and some more.

At the end of the term I decided not to keep the bike, but traded it in against a Triumph. The Triumph dealer gave me a good trade in figure and then sorted out the final payment to Honda and I still have the lump sum in the ISA. The merry go round is still going round and you only really take on the initial deposit and if you just hand it back.

Financially it may be more expensive than saving up the cash, but the monthly payments are quite small.

Horses for courses, but working well for me as I can already afford to pay the balloon figure on the Triumph if I decide to keep it in another year and a bit.

You have to either disciplined or have some spare cash around to do that

I don't think Dibbs is in that position

[dibbs]

PCP is not all bad.

I bought a Honda VFR on PCP in 2014, what I did was to put enough money into an ISA each month to pay off the balloon payment at the end of the term. This also acted a rainy day fund so some payments to the ISA were less and some more.

At the end of the term I decided not to keep the bike, but traded it in against a Triumph. The Triumph dealer gave me a good trade in figure and then sorted out the final payment to Honda and I still have the lump sum in the ISA. The merry go round is still going round and you only really take on the initial deposit and if you just hand it back.

Financially it may be more expensive than saving up the cash, but the monthly payments are quite small.

Horses for courses, but working well for me as I can already afford to pay the balloon figure on the Triumph if I decide to keep it in another year and a bit.

You have to either disciplined or have some spare cash around to do that

I don't think Dibbs is in that position

Johnnyboxer i was playing devils advocate on this, it was merley a scenario for someone with really poor credit after taking out the initial finance! my rating is in fact impecable lol... so will have no problem paying or re financing the balloon payment. (in fact I have done similar to Elmer and saved most of the balloon amount, but might re finance and keep the cash in my pocket! or put it in an ISA now!) But as you said one has to be very disciplined with PCP or finance and if you are i think its still a good way of ride now pay later if you want (and can afford) the latest toy. Thanks for your advice as it has been helpful and at least i know what could happen!

[PaulinBont]

When I traded in my CCM which I owned outright, the trade-in values were laughable unless I part-exchanged it for a new Honda using PCP . I decided not to go down that route when I realised that I was in effect, renting the new bike.

As an aside, the used section of the showroom had dozens of three-year old bikes available on PCP, so it's just not only for new bikes. Most of the Multistradas, GS's and Explorers were mint, low-mileage examples , priced way below the new prices so PCP might make sense for some in that sense but as I said, the best used price for my GP450 was against a new 2018 CB500X as the new 2019 models were in high demand. I didn't mind the 'older' model.

Horses for courses.

[lancashirelad]

My cars on a PCP & I just swap it every 3yrs, not sure about a bike on PCP as I like to add bits to bikes, but I suppose it would be just a case of taking em off before it went back?

[92kk k100lt 193214]

Ouch....in 9 years bought 4 bikes....each standing me just €1,000.

Would I use PCP? Never.

I use my car and bikes for business hitting 25k miles a year and currently its all on 2 wheels, car not used in 2 years...a nice low miles [110k] Rover 75 diesel top spec.

Still no PCP.

All paid for and all running to top performance. Yes, I still have all the bikes too. No mileage limits anywhere.

Best value private use cars...buy a 2 year or 3 year old low miles ex PCP for straight cash and keep it for at least 10 years.

[bowber]

I've been fortunate recently to have had the money saved to buy my last 2 bikes as low mileage and still in warranty, I say fortunate but neither me or my wife smoke or drink so our only real outgoings are household or vehicle related, no mortgage either.
We did look at a BMW 1200 when the WC ones first came out, Alison had a test ride and was tempted but once we looked at the prices and the PCP we backed away rather quickly, she then found a reasonable 750 AT soon after and that's what she'd really been wanting after having had one years ago.
At about the same time she'd asked the local KTM dealer about their 0% finance but as he knew us he just said "How do you think we make the money from them? You'd be paying full book price, pay cash and I'll give you a reasonable discount!"

Steve

[Pint Master]

At about the same time she'd asked the local KTM dealer about their 0% finance but as he knew us he just said "How do you think we make the money from them? You'd be paying full book price, pay cash and I'll give you a reasonable discount!"

Steve

if you didn't mind being nasty and wanted your cake and eat it you could have taken the discount but still insisted on the 0 per cent finance as its highly illegal to offer a discount in lieu of low of zero per cent finance.

[garyboy]

well .. I tried for the Tesco personal loan and it was turned down due to my low income against outgoings.
My bank turned me down too,
and credit cards seem to be up to £1500 whereas i need £3000 ish
So i have applied for re-finance from my original finance broker
I will know end of next week if I get it or if the bike (NC750) has to go back

[Richard Simpson Mark II]

What's the bike actually worth?

If you can sell it quickly for more than it owes, then you can walk away with some cash at least.