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Thread: Bike values?

  1. #11
    LIFETIME FORUM MEMBER JimmyMac's Avatar
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    Re: Bike values?

    Quote Originally Posted by MacRR View Post
    If I do I'll go or an ex demo bike at the end of the season and save some dollar.
    The best policy MacRR, depending on the discount.

    JimmyMac

  2. #12
    2 YEAR PREMIER MEMBER oldwobbler's Avatar
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    Re: Bike values?

    Not long ago cash was king. Not now - dealers like PCP as it guarantees the customer will return in 2 - 4 years.
    Or in the case of one of my mates - every 3 - 6 months!
    Punctuation - the difference between knowing your shit and knowing you're shit.

  3. #13
    1 YEAR PREMIER MEMBER bmwbadboy's Avatar
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    Re: Bike values?

    Quote Originally Posted by oldwobbler View Post
    Not long ago cash was king. Not now - dealers like PCP as it guarantees the customer will return in 2 - 4 years.
    Or in the case of one of my mates - every 3 - 6 months!
    How does it work exactly?

    You get a loan for 2-4 years and at the end you just upgrade to a new model?

  4. #14
    2 YEAR PREMIER MEMBER oldwobbler's Avatar
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    Re: Bike values?

    I've never done it so am probably the worst person to explain it. Other than there are a LOT of varying options. All tailored to take your cash
    Punctuation - the difference between knowing your shit and knowing you're shit.

  5. #15
    Forum Admin soofsayer's Avatar
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    Re: Bike values?

    Quote Originally Posted by bmwbadboy View Post
    How does it work exactly?

    You get a loan for 2-4 years and at the end you just upgrade to a new model?
    Say you buy a bike for £15k. The dealer can give you a guaranteed future value or estimate. Say that after 3 years it is £10k.

    So you need to pay the difference, plus interest on the whole amount on finance over that period. So lets say you throw in £5k, you finance £10k.

    The finance will be 36 payments of £138 (£5k divided by 36), plus the monthly interest on the whole amount outstanding. Say its at 5%, you would be paying about £35-£40 per month in interest, so total £138 + £40 = £178 pcm.

    The idea is that when you get to the end of the 3 years you give the bike back, you still owe £5k but the bike is worth £10k, so you roll the £5k equity into the next £15k bike, payments probably stay similar and you carry on.

    Upside, get an expensive bike for low monthly payments.
    Downside, you never own anything, you as basically renting and paying down the depreciation.

    You could do the same thing over 6 months, 1 year etc, just that the payments would likely be much higher due to the greater depreciation at the start of the asset cycle.
    Last edited by soofsayer; 14th January 2019 at 10:36 AM.

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  7. #16
    2 YEAR PREMIER MEMBER DCB's Avatar
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    Re: Bike values?

    Quote Originally Posted by soofsayer View Post
    Say you buy a bike for £15k. The dealer can give you a guaranteed future value or estimate. Say that after 3 years it is £10k.

    So you need to pay the difference, plus interest on the whole amount on finance over that period. So lets say you throw in £5k, you finance £10k.

    The finance will be 36 payments of £138 (£5k divided by 36), plus the monthly interest on the whole amount outstanding. Say its at 5%, you would be paying about £35-£40 per month in interest, so total £138 + £40 = £178 pcm.

    The idea is that when you get to the end of the 3 years you give the bike back, you still owe £5k but the bike is worth £10k, so you roll the £5k equity into the next £15k bike, payments probably stay similar and you carry on.

    Upside, get an expensive bike for low monthly payments.
    Downside, you never own anything, you as basically renting and paying down the depreciation.

    You could do the same thing over 6 months, 1 year etc, just that the payments would likely be much higher due to the greater depreciation at the start of the asset cycle.
    you can of course pay the final outstanding payment and own the bike after the 3/4years

  8. #17
    2 YEAR PREMIER MEMBER Rosso's Avatar
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    Re: Bike values?

    Quote Originally Posted by DCB View Post
    you can of course pay the final outstanding payment and own the bike after the 3/4years
    Indeed you can , however if you have good credit & this is your final intention , there are cheaper ways to do it. (Deposit & low interest loan... if you are prepared to chop & change a few zero interest cards, the interest amount could be minimal).

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  10. #18
    1 YEAR PREMIER MEMBER bmwbadboy's Avatar
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    Re: Bike values?

    Quote Originally Posted by soofsayer View Post
    Say you buy a bike for £15k. The dealer can give you a guaranteed future value or estimate. Say that after 3 years it is £10k.

    So you need to pay the difference, plus interest on the whole amount on finance over that period. So lets say you throw in £5k, you finance £10k.

    The finance will be 36 payments of £138 (£5k divided by 36), plus the monthly interest on the whole amount outstanding. Say its at 5%, you would be paying about £35-£40 per month in interest, so total £138 + £40 = £178 pcm.

    The idea is that when you get to the end of the 3 years you give the bike back, you still owe £5k but the bike is worth £10k, so you roll the £5k equity into the next £15k bike, payments probably stay similar and you carry on.

    Upside, get an expensive bike for low monthly payments.
    Downside, you never own anything, you as basically renting and paying down the depreciation.

    You could do the same thing over 6 months, 1 year etc, just that the payments would likely be much higher due to the greater depreciation at the start of the asset cycle.
    Thanks for thorough explanation, that was useful.

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