My Motorcycle Finance is UP on the GS | Talking HP & PCP | What's next?
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- Опубліковано 7 лют 2025
- Hey Everyone,
Here is my final bimble on the GS before it's sold :(
In this video, we take a look at the difference between HP and PCP finance when it comes to the different Motorcycle finance options available.
The article I reference in this vlog is here:
www.usernameka...
Thanks for watching and I'll see you in the next video!
Usernamekate 🏁
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#USERNAMEKATE #motorcyclefinance #finance
Never been much of a PCP fan but it does make it more affordable in the short run. I'd rather save and buy out right even it's just a much older bike!
Yea I agree I'm lucky to have several bikes. All but one were secondhand and not that expensive but if I couldn't buy them outright I wouldn't have bought them. Id rather have a much cheaper secondhand bike I could buy outright like I used to years ago when I started riding and had no money. I still enjoyed the bikes as much if not more than I would of had they been expensive new machines
@paulfowler6665 Agreed, actually owning it out right feels so much nicer. Even if its 10/15 year old and slightly battered.
@@paulfowler6665 agreed. My current bike is a 2002 TDM 900 that had 44,000km when I bought it two years ago. It’s the best bike I’ve ever owned. Nothing I’ve seen in the current models would entice me to spend $15+kAUD to swap it out. It’s still a great bike and still brings a smile.
I've done a few PCP's and have always paid the balloon at the end, coz the bike always seems to be worth more than the balloon so handing it back is not the best deal (I don't do many miles tho')
If you think about it, a PCP deal with sub 4% APR makes sense as you can out earn the interest charge by putting the value of the bike into an ISA, and then paying the monthlies. Obvs with a new bike, you get warranty and often cheap servicing too.
Kate, you don't "ramble on", you entertain. Cheers from the Pacific West Coast of Canada.
First person to be honest about pcp and the fact it pushes up prices. Well done.
That's just my opinion
A few years ago, I bought a new Honda A/Twin on 0% PCP. At the end of the lease period, I bought the bike from Honda; so it worked out well for me. The days of 0% PCP, have long gone however. If I can’t afford to buy a new bike cash, I won’t swap my bike; it’s as simple as that for me. (It’s only a hobby).
Not true. Norton have just had an amazing 0% deal on the Comnando 961.
And it still won’t sell
@@MultiFridgeRaider yeah but nobody wants their expensive junk.😂😂😂
@@SBKPete They’ve moved hundreds.
But anyway. It was still an amazing offer.
0% over 2 years. No deposit.
Can’t see any other manufacturers doing it.
£55 a month.
Show me anything cheaper over 2 years?
Not true at all. Suzuki also currently offer 0% finance.
One point to be aware of is: if you try to end an agreement earlier than the initial contracted time period, you may ( will ) be charged a further amount for doing so. Read the small print before you sign anything.
I bought a GS on PCP and settled the agreement a year earlier and saved money.
Essentially it’s the full payment for the whole pcp period minus a bit of interest. I can’t see any reason to give it back early tbh unless you are close to mileage limits and want to save on the insurance and servicing…
@@beefy0978 I decided I was going to keep it longer term so I bought it and saved a lot of interest as I was 2 years in on a 3 year deal. I would have exceeded the mileage anyway on 3 years so it made sense for me to settle early
Brilliant video that is Kate. Every option explained in detail. Very informative and interesting. I’m lucky I own mine but I’ve had PCP previously and as you say it can work for you if you play it right.
Cheers👍🏻👍🏻
Very Interesting Kate! Thank you! I purchased a Scram 411 by paying cash! I have a severe dread of debt, I'm afraid! Yes, it took half of my savings, but i'm not burdened in my head!
Very good Kate, thank you
I am one of the old school that like to own my bikes , so I save up and buy them, but found it interesting, I’ve heard a lot about pcp and tbh never really understood it ( until now 😊)
Love the way you have broken it down so it’s easy to understand to us “ old folk 🤣”
👍
I’ve been using BMW PCP to fund my GS habit for quite a few years. When my 2022 GS was at the end of its term I was rather shocked to find there was no equity in the bike despite doing less than half the allowed mileage and the bike being in showroom condition. My monthly payments would almost triple, my local dealer told me it’s because I had the previous generation and BMW sold them off really cheap, hence no equity in mine. I ended up given the bike back. I can’t help but think it’s an issue with my dealer not wanting my bike as I do see them for sale at £5k more than they offered me. Either way BMW have lost a loyal customer/income stream. Personally I won’t be dong PCP again as not bothered about having a new bike and enjoy doing my own maintenance.
@@TheDervMan PCP is a mugs game, it only benefits the dealer and the finance company. Personal bank loan is best, so you own the bike from day 1 as the loan is unsecured and not attached to the bike.
@ I went for PCP as wanted an expensive GSA which I didn’t want to pay up for. Now with the benefit of hindsight I’d absolutely agree with you. Unless you’re someone who changes bikes (for new ones) every few years.
Never bothered with new, 3 bikes all second hand happy days
@@markr1142 0% APR is better. bank loans are better than HP
@ best way, let someone else iron out all the software bugs.
I've always bought my bikes in full by using cash or cheque. I do tend to keep them for quite a few years, very interesting video though, thanks.
It's an extremely interesting episode, even though I'm from a different country. It's fascinating to gain an insight into the financial condition of your market.
Yes mugs everywhere strangling themselves up with debt and commitment .. insurance, servicing BMW dealers will; not buy in motorcycles Only exchange .. the open market is not buying .. Germany Italy France UK brink of a downturn .. who needs a BMW 1250 to cover 1500 miles a year
One important piece of important information that you missed is that the interest payments tend to be a lot higher on PCP. On HP the interest declines to 0 on the last payment date, so on a 4 year HP deal, year 4 interest in negligible, whereas on PCP the interest doesn’t reduce as much because the ballon payment is considered in the debt for the interest calculations. But you made a very important point re the deposit. A higher deposit only reduces the monthly payment but not the interest due, so you’re better off with the smallest deposit possible.
That's not true. You pay interest on what you owe, so you will always pay less interest if you put down a bigger deposit finance calculators on manufacturer's websites show this
All though on pcp it's not a lot that you save the difference between minimum deposit and maximum deposit is about £600 on a 4 year deal for a GS
Congrats on getting to 100k Kate 👍
You can get good older bikes for 2 to 3 grand... pay cash... maintain them .. lose very little money😊
So true ,my vfr750 cost £1500 ,great condition love it.
That's the sensible approach and it keeps these manufacturers honest
Thanks Kate that was a very useful and informative video. As you say too many myths about finance are banded about and it is all about looking at options and what is right for your personal circumstances. My wife and I were lucky enough to buy two bikes with you during lockdown so we know that you have a great knowledge base on this subject. Safe riding
David & Rachel (Colchetser)
A really useful and informative episode. You might want to consider walking us through a few more similar sessions: Perhaps Do's and don't about buying from a dealer, how to get the best deal (end of the month/end of the quarter) etc. A great channel. Keep up the good work!
Great vid Kate, very useful & informative. I learned a lot of this the hard way over the years having had 3 bikes on finance preciously. Although I still picked up some new helpful bits of info from your vid too. I currently have a bike on PCP so always good ro have a refresher & be prepared for when the time comes.
I earn good money and like shinny new things, buy my cars and motorcycles on PCP, equity usually pays the next deposit which means I've something reliable and nice for fairly reasonable repayments, save or invest the rest.
This was fun. I live in the US, and although the terms (labels) are different, the finance and lease options are similar, if not identical, and I think you did a great job of summarizing it all. Now, of course, the viewers’ attention turns to just what you are planning to purchase next 😊
I never heard of leasing a bike, though. Britain is pretty different. (US here)
Manufacturers use various names. See Harley-Davidson for example (“Flex Financing.”) As far as I can tell, they amount to the same thing.
Actually, with the volatility of the market, it’s a safer way to be able to get out of a bike if you are likely to keep it for only a few years.
PCP has lower monthly payments than HP because you are only financing the depreciation of the bike over the period and not the total cost of the bike. This is why there is the balloon payment at the end if you wish to keep it. So long as the interest rates are reasonable this a decent way to finance your purchase and as you say you can then pay off or finance the balloon payment if you want to keep your bike. My guess is that a lot of people will not look at the interest rates and will only look at the monthly payment and decide if they can afford it or not. I agree that this has the knock on effect of maintaining the high price of motorcycles and whoever thought this up is a genius for this reason.
And they even offer PCP on used bikes now. Almost means it's entire value is gone at the end.
My GS has 12,000 miles on it when I got it. My settlement vs what the GS's with similar miles to me are going for means I'd have about £2,000 equity.
Thanks for that. There can be great deals on finance if dealers are struggling to shift stock, if you want a new bike best to be open minded about all the options and compare them all from pcp, hp, bank loan or outright savings.
Hey Kate congrats on 100K !! 🙌
Never a borrower nor a lender be. That was the advice my father gave me when I was a teen back in the sixties. Best advice ever, if you want something then save up until you can afford it. 😇😇😇
I could afford the GS when I financed it. I'd just rather pay a monthly and keep the bulk in my account :)
out of date views, cars (and bike) were simpler then too and not an electrical/mechanical ticking timebomb, why chuck money into an unreliable old dog when a pcp gets you something with a warranty and you know where you stand every month
@@simonrichardson3167 Seems like a bad reason to finance. If the issue is reliability, then just buy a Yamaha instead of a KTM. You can still get a warranty.
Great information Kate I bought my street triple r on pcp only pay £100 a month but when it’s nearly up will probs swap for another new bike 😊 have 3 years left though 🙈
"Its not pcp, its angel dust!"
Well done for explaining something so clearly that can be so confusing, especially for us older riders so thanks and keep up the fantastic content 👍🏍🏍🏍
Great video Kate.
It’s right to talk about the different ways people can fund their bikes. People are still funny about money and borrowing responsibly.
My advice would be to buy with cash if you can but if you can get a good PCP deal pay it off early.
Modern finance agreements allow you pay random amounts into your deal when ever you want.
It’s a great way to get your bike and own it outright quickly by paying off the loan in a year instead of 3 or 4.
As someone who only ever bought things outright, I think the situation has changed. Most of today's stuff is very low quality, loaded with issues and zero manufacturer support. Owning something outright means you are more on your own and a second class citizen as far as the dealer and manufacturer is concerned. There is nobody to turn to for support when you are waiting for parts and service. This is especially so with BMW with all the undocumented features and flaws of their new products. I think anyone who bought say a new 1300 job one GS with their own money is either very brave or needs their head examining.
Hi what are some of the flaws?
The you tube reviewer brigade tend to gush on them ,much like the new untried and rather staid looking Hornet .
Very good point and its worse with cars. I always get older bikes but if i was buying new i would pay monthly for exactly that reason. I dont want a 5k bill for repairs on a bike just out of warrenty. I would probably have to use the dealer to connect to the bike. No way thats not the freedom we all want.
really clear video , not many people talk about finance great video kate
I reckon the best con trick the motor industry (cars and bikes) ever pulled off was convincing people that getting stuff on pcp/hp was a good idea! 🤣🤣 (unless it's actual 0%).
It is the people conning themselves by 'getting stuff' they can't really afford.
0% is also a sign the bike is too much money…they are making it on the bike or finance, takes your choice.
How would you buy something you actually want without some kind of finance??
@@aidens04 CASH
@aidens04 Are you being serious? 🤣. By not p*ssing money up the wall on finance and saving for it! 🤣🤣.
Really useful Kate. Thanks. Bet you were sad to see Beatrix go... great bikes ( I'm biased)
Very knowledgeable Kate. Great video.
Looking forward to see your next bike Kate! 🎉🎉
😂 Yeah my 1200 GS adventure has 15,000 mi... Stacked on, in 6 years😅..
Lucky to say it's been to Zion, Yosemite, Arches Park /Moab, and most of the Pacific Coast highway.
It certainly doesn't have any dealership trade-in value compared to its worthiness as a machine owned outright and... Capable of thousands and thousands of additional trips
Thankyou Kate for explaining in simple terms, how it all works. There will always be those that are not happy unless they have saved up their hard earned cash and buy the bike outright. They just feel better inside. This also fine if you cover high mileage in which case a PCP is going to be very expensive and cash or HP is the way to go. That’s fine with relatively cheap bikes under 10k but when you’re contemplating a 25k Ducati or BMW this is hard to justify as you have to factor in depreciation which for some bikes is crippling. Needless to say KTM and Chinese bikes fall into this category. I have PCP on my BMW at a fair interest rate and my annual mileage is low at 6k. I have the safety net of knowing that I have the backing of BMW and the dealer if anything goes wrong. I also have PCP on a car which I couldn’t possibly afford to buy on HP and to buy outright would be madness owing to the depreciation over 3 yrs. ‘Renting’ isn’t for everyone but in my circumstances it’s perfectly logical.
That tarmac at Westhoughton roundabout has been like that for as long as i can remember and nearly had me on my ass once, now use the outer lane. Glad to know its not just me that has concerns about it!!
I’ve never understood putting down a low deposit on pcp because the less you borrow the less interest you will pay? Unless I’m missing something. I got an MT09sp on pcp and put 2.5k down because this meant the total repayable in the end was lower. The sales guy couldn’t explain why a lower deposit was better either. They obviously want you to borrow as much as possible as get a kick back from finance company I assume.
Hi from Holland Kare, always enjoy watching your videos ❤❤
One side of it is to be able to buy the bike now while you're fit and well enough to tour, like Europe or other beautiful destimations with your other half and make memories. I bought a Tenere T7 amongst others, it has held fantastic value well above the pcp balloon due, so I'll purchase it this year earlier and sell it privately in the spring when demand is high making my loss minimal over the 3yrs.
7000 miles in 4 years.
Only used to ride to church on Sunday.
On the rear wheel only off course…..lol
Yes clutch bite bit aggressive lol
Great into, thanks. I couldn't work out why PCP would be considered as an option, but having relatives equity in the bike, compared to the final value was the penny that hadn't dropped.
I’ve bought numerous cars and motorcycles over the last 30 years on PCP. I look at it as I get what I want now, no waiting and I could afford it. Never had any issues with any company.
As I got older I can now afford to pay cash and that’s what I’ve done for the last two cars and two bikes.
This was really informative. Thank you. I’ve always been put off pcp. But I now understand it has its place
Sound advice Kate and from someone that was in the industry, very reassuring of the facts 👍🏻
Funnily enough I watched this because I have a Speed RR that's going back in September!
Here in the states BMW has the easy pay finance plans, sometimes referred to as 3-easy plan or something like that. But the ballon payment at the end here is not something you can "walk away" from. The balance will be do. And if you trade it in and there is negative equity (which there will be), the balance is still due. So you're either paying out of pocket or wrapping it into the next finance loan. Sounds like the rules are different in the UK.
Don’t forget you can chop in anytime you like.
Very interesting. I knew of such a thing but had no idea how it works.
My parents drummed it into me that loans of any sort is bad... the beginning of the end. My late Dad said, "if you want something, save for it. If you can't save for it, you don't want it", and I kinda rolled with that.
Admitted, it limited the number of bikes i've been able to own, but living in Switz., there are other ways to get round riding a variety of bikes, without owning them all.
Thanks for the education, you're a good teacher and I sat up and listened carefully. I might well have used that option, had I lived in UK, despite my Dad's preachings. After all, rules are made to be broken... aren't they?
So, are your BMW days over now, is it time to shed your inborn Beemer feelings and own a "proper" bike now😉? I look forward to the presentation of your future 2 wheeled ride... what could it be, I wonder🤔!
That's a very archaic way of dealing with your finances. Not particularly smart either. Respectfully.
Nice video, I have my mod 2 tomorrow and will be looking at bikes that same day, hopefully.
you will find very few places willing to give you a test ride - it was such a hassle for me
@dreamcrusher112 the honda dealership where I live is going to let me test drive. BMW wanted me to have my licence a year before letting me test drive
Always done PCP, didn’t know that about the additional mileage not being charged. Cheers
Really sound advice, thanks Kate. For me PCP does seem to work. i say that as I’m coming to end of a 3 year agreement in June. I was lucky to get a 2.9% rate in 2022. If I’d have paid cash it still would have cost me money as the bike depreciated. The downside is that trade in prices are rock bottom right now so no equity. I’ve still got the GFV which is quite low so I’m tempted to just buy the bike.🤔
Hey Kate how are you doing just to say your vlogs always brighten up my Sundays and and wearing your swanky helmet and dark visor ride safe lovely only one username Kate ❤
My personal experience- I had an Aprilia RS660 on PCP. I wasn’t bothered whether or not I kept it at the end of the 3 years - if I loved it, I’d cough up the balloon payment, if not, then I’d give it back.
Unfortunately I had a spill on it around 18 months in. Only me involved, just fell on some diesel. I didn’t want to claim on insurance, so went about fixing it myself. Fortunately so many had been turned into race bikes, so there were some panels available. (Everything was on back order from Aprilia).
After the spill, I wasn’t feeling it anymore and wanted to move it on. Unfortunately I had to clear the finance first, before I could sell it. I knew this would be the case, but I had to find 8k to settle, then sell to recoup. I was honest about the incident, so I took a massive hit.
It’s definitely worth bearing in mind that PCP might not be for everyone, especially if you change your mind frequently, or your circumstances change.
Would I do it again? Perhaps, but I’m in no rush to!
For me, i prefer a personal loan, that way the bike is mine to do what i want with and to sell or part ex at anytime i want.
You've given us some great information, love your videos keep up the great work👍👍.
Very good.
I’m lucky enough to have several bikes in my garage, most I own outright, a couple on straight loans or HP but one I always have on a PCP, so I can swap it out regularly and always have the latest model. The point I want to make is I don’t feel any different to any of my bikes , I love them all equally, I never think oh that’s just on a PCP it’s not really mine I’m just borrowing it, that never enters my head. I have the same pride of ownership in my PCP bike as I do the rest.
Also I would add that even if you have the money available to settle your PCP early it may be worth paying off the vast majority of the finance to save on interest but still leave say a couple of hundred outstanding. That way as Kate says you’re protected from any future financial crashes. If after the end of the agreement at say 4 years you fancy a new bike you can trade in for the GFV if the PCP is still active. If however you’ve paid your PCP off and turn up at the dealership after 4 years in the middle of financial crisis you may get a trade in value much lower than the GFV, so it’s worth just keeping a little bit of finance on the PCP until the end to keep that GFV trade in figure for your own peace of mind.
Finance on a depreciating asset, particularly one you can't even keep without a further huge payment is a mugs game. It always was, and it always will be. It absolutely allows the dealerships to send prices through the roof. There is a reason why the manufacturers want everyone to finance their cars and bikes - the buyers often don't even look at the actual price - only the monthly payment, the machine gets paid for by people monthly, it is serviced by their dealers, the mileage is kept low because you have to stay within the allowance, and they usually get the bike back to sell again at a marked up price.
For the punters, its a lose lose. You pay for something for years, have to be careful of the mileage and maintain it - only to give it back in most cases. Its the most expensive way of never owning a bike.
The only exception to this is a true 0% HP deal.
Having said that, I do understand that there are times when there is no option than for someone to do it this way - and it does mean that there are plenty of 3-4 year old, immaculately maintened, low mileage machines available for people like me to hoover up at cheaper prices. So thanks for that.
Found this very interesting and informative, looking at getting new gsa in june so might be to add a few more packs or extra upgrades,
Your not alone in not doing many miles on your bikes. 7000 in 4 years isn't that bad. I have a 2020 ninja 1000 with just over 6000 miles a 2021 interceptor with 1500 miles on and a 2023 Hornet 750 with only 2500miles on. Life gets in the way of riding big miles sadly for most people 😢
I've got a 2014 bmw f800gs with only 1500miles since new.
Totally agree on PCP pushing up the prices. We are getting into the low to mid £20k's now for a decent specced GS or similar. It's getting to the point where cash buyers like me are starting to say enough is enough. I'm not willing to pay the 7.9% interest to be able to afford one of the top end bikes and I don't really think any bike is worth much over £20k.
Good morning Kate this will be very interesting to watch have a lovely day 😊
You just reminded me to let the dealer know that I've changed address 😆
Thanks Kate. Very useful information
Glad it was helpful Adam! :)
@UsernameKate I checked my contracts after this video. I have 1 bike on pcp with £1000 balloon payment due November 2026 but my other bike is due to finish in April 2027 with no balloon payment. What's your advice if I wanted to end my contract with the balloon payment and sell the other bike, then buy 1 bike.
I'll want to wait until the summer before buying another bike. Feel free to private message me if that's easier.
Thanks
Ps, no worries if you can't. I know you're busy
You never know it all thank you .just about to settle mine as I have the dosh want to own the bike and save £600 %
These contracts with any "residual value" included may potentially contain some risks depending on the clauses included, i.e. if the actual value of the bike at the moment of contract end is lower than the agreed remaining value, then you may have to pay this difference to the seller of the bike if you want to give it back.
Generally speaking, I agree to the some of the other comments. Level of average debt of households spent on consumer goods are rising, far higher than beeing at a healthy level. A motorcycle is for most of us a hobby, not a necessity. Hence, if you cannot pay your bike cash, than choose a smaller, or older/used model. There are great new bikes out there below 10k (all sorts of models, from racing, naked to adventure bikes). If that doesnt work out, than save some money until you can afford it.
Of course, the situation may be completely different if you are a professional motorcycle youtouber that can deduct related expenses for motorcycle financing (depcreciation or leasing rates), including interests, insurance etc., from your income taxes.
indeed last paragraph
The guaranteed future value means you CAN just hand the bike back if it’s worth less. It’s subject to T&C (crash etc) ….but that is the point of PCP. Finance the depreciation element only, and then hand it back, or finance the “balloon” payment on completion of contract.
Very informative video and I really enjoyed hearing about all the options.
Great advice cleared a lot of confusion about PCP THANKS KATE
Another little known feature of how PCPs work is how adding accessorises to a base model or choosing a higher spec model works.
I buy BMWs which are well known for their accessory catalogue and model variants.
Basically on a PCP you pay monthly for A) the depreciation of the “standard “ bike and B)the FULL cost of any accessories added and of course C) the interest on A&B.
So for example using unrealistic but easy figures if you had a BMW GS BASIC at £10K and a BMW GS TE which comes with panniers etc for £15K , you could add £5K worth panniers and accessories to the GS BASIC to make it the same spec as the GS TE and so have 2 identical bikes each worth £15K, so you’d expect the monthly PCP payment to be identical right ?
In fact because you have to pay back the FULL cost of those £5K worth of accessories over the term of the PCP you’ll be paying more for the GS BASIC per month.
Because although you pay £5K more for the higher spec GS TE in the first place all the accessories are considered factory fit and STANDARD and so part of the extra £5K remains within the GFV residual value balloon payment , you’re not having to pay it all off during the PCP.
So the moral is if buying on PCP never get the BASIC model and add accessories, but the higher spec TE type model where all those accessories come as standard.
Thanks for that Kate,wanted to know the in's & out of PCP 👍
Thanks Kate I've just took a GT pro out on PCP I understand it more now 👍
When you Finance something in the USA you get a loan. When the Loan is paid off, you own the Motorcycle With a Lease you turn it in at the end of the lease. Often they give you an option to purchase at the end of the lease.
Great clip. Very informative and defo a few things I was not aware of.
Currently on pcp myself but didn't know about the GFE.
How would I find out if I had this or where could I find this on my documents.?
Thank to you and your sponsor had custom fir guard round this weekend. Ash what a top bloke and great service.
Cheers
Interesting topic, I'm looking at buying a new Himalayan in the spring and with the configuring I went for on the RE website it prices out at £7,250. Likely I'll pay cash and then recoup about half when I privately sell two bikes I currently have, one in regular use and the other on SORN for the last two years.
But no little teaser what may replace the GS.
For those people who took finance on a motorcycle before 2021 check with the dealer or finance company if there was a DCA in place. If so then raise a complaint as you quite possibly have been overcharged.
Obviously the new precariat has loans and PCP's on cars, motorcycles, furniture, vacations and what have you... or what not... I was there myself and I am still happy and proud that I am finally economically independent enough to pay cash for my stuff and that I'm no longer contingent on loans (no, it were choices and not inheritance). Looking back it was a struggle and somewhat humiliating in the end.
2025 Tracer9gt+ may be closer than I thought. I was worried about the accessories bit on PCP as I fit extra lights (I was the guy on the yellow RT when you had the ladies day at supremecoat
in Dronfield)
I px'd my MT10 last week, which was on pcp for a Speed Triple 94R on HP. Pcp is OK if u want a new bike every few years, but the thought of having another 3 years plus a mega lump was really playing on my mind. I'll own the Speed in two, so made much more financial sense. Not as modern, but still a lovely bike.
You described the difference between what we call a 'purchase or a lease'.
Usually leases are exclusive to New 'merch... not used
Purchases are 😂 possible for both new and used. With higher interest rates for used machinery... And higher rates corresponding to the length of the term chosen. 1 to 2 years as short, up to 72 months..😂 and more! Available at high rates...
The strangest thing is people wanting to trade in at the time of actual ownership because the machine is paid off... Hence, obsolete by cool factor of 'time passing' 💸
The more deposit you pay on a pcp, the less interest you pay overall (as with any finance agreement). Dealers / finance companies limit to 20% to ensure you dont go over the 50% of total cost limit meaning you can hand the bike back anytime thereafter with a voluntary termination, irrespective of mileage or pcp term (within reason). So you could sign up to a 4k mile a year pcp, put 15k miles a year on it, get to 50% repayment and hand it back. As long as condition is reasonable. Done that with a couple of cars. They even have to arrange collection under a VT.
I remember when I brought my s1000xr about 3 years ago the only way I could get a deal on it was to get a pcp deal and pay it off the following day.
Awesome video! Very useful information. Well done. Best!
BMWUSA gives bigger rebates on their leases. They were giving $4500 off the 2024 1250 GSA final edition on a lease, or $1800 off for cash or normal financing.
Thanks for sharing Kate. Very informative video.
Best video in ages Kate, very informative
Nice informative video Kate. Will you miss the GS?
I got stung a bit when I wanted to get out of my old GS because I relocated to the other end of the country and needed to buy a new house. I was 2 years in, and after 3 months of timewasters I managed to find a Motorrad Dealer to buy it back and clear the finance. I was a bit gutted I didn’t have at least some equity in it after my £2k deposit, but I guess the new one was on its way and the value tanked a bit 🤷🏼♂️
I’ve just got a new KTM on 4 year 3.9% HP. I’m much more comfortable with that than a 7.9 or 9.9% PCP with BMW at twice the list price.
One of the reasons to put in as small a deposit as possible :( sucks when it doesn't work out. When i was selling bikes and people were interested in 4 year PCPs I was like... are you sure you like this bike because if you don't and want to change straight away, it will be expensive. Usually, you'll reach parity halfway through otherwise it'll financially sting unfortunately 😔
Mixed opinions on the PCP for motorbikes, I think it's makes more sense for bikes than for cars.
I was able to ride a brand new top of the range motorbike for less than 5% of my salary per month. The 15k cash I would have spent was still earning interest during that period just being in an ISA.
That being said I think next time I would like to pay cash for something I'd really want and a bit more customisation.
Nice one Kate. easy to understand thanks🙂
Avoid anything with interest if possible.
Its always better to put that money away each month till you can get it.
Somtimes finance is unavoidable if you need a vehicle. Fair enough.
Love the video and your banter🤩🤩🤩🤣👍🏻👍🏻
I find it hard to believe that when it comes time to settle the pcp deal in this day and age and economic climate, that any bike will be in a positive equity position. If they are it will be miniscule.
Market value vs settlement, I'd have about 2k equity in it.
I paid Cash for my Trident - at time of trade in 3.5years later - I was offered £800 less than what the GFV was if I had PCP’ed it. I avoided Interest, but couldn’t hand the bike back for the bigger Balloon value.
I'm here for the nails. But if tryna be on topic, I did trade in of my 2012 drz for 2024 r7, put a few grand cash on top, then loaned £2k at 4.7% which was less than the yield for holding usdc on coinbase. Miss my old bike badly, should have kept both as only got a few k for the drz and was in amazing condition, but had no garage. Ruined relationship with r7 for a while as so much less comfortable city riding, tho got handling down, got over losing the drz and eventually fell in love with the ride.
Thanks Miss Kate, I thought I knew it all but …….I didn't, interesting from an Xsales persons point of view. So the next bike is……..?
I haggled with my dealer on a Buell 1200. No discount offered when they first came on the market. But I rang every dealer, and one, a new dealership, I haggled a 50% down, rest on zero % over a year ( about £4k), as I was in the game, I told him that Black Horse ( Lloyd’s) will have a product. hp.
…they even derelived the bike to me, I was delighted
lol loving the spell check
Sounds to me like, HP is a normal finance contract, where you own the bike at the end of the contract. PCP is like a Lease, I,e; balloon payment, limited mileage allowance. Over mileage charges. What we have in the USA.
Very informative. Thank you.
Kate. This totally random to your finance lecture but….have you ever watched a brilliant movie called Dead Man’s Shoes starring Paddy Considine. Reason I make mention? The helmet you are wearing in this reminds me so much of the elephant style gas mask that was subject of the movie. Not a good look me thinks.
Oh forgot to ask is your new bike a Honda Hornet 1000? If not why not as Lamb Chops and English Biker Dan have bought them so just wondering which other UA-camrs will jump on the bandwagon 🤔
Really informative thanks
What new bike are you getting? Bmw has great rates for ridenow, i did that after price negotiation, it will workout well for me.
i got a great deal from kawasaki in late novemeber, over 1K of the msrp of my bike and 0%hp finance
I took out a PCP deal from a dealership you're associated with and they have totally taken my pants down and kick me in the bollocks and currently trying to reject the bike for that reason, first and last time I would ever go down the route of dealer finance