To PCP or not to PCP...?

Discussion in 'Lounge' started by Nigelg79, Oct 7, 2018.

  1. Nigelg79

    Nigelg79 Active Member

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    So I’ve decided to make a change and jump over to a Street Triple RS, selling the blade soon.

    Question is regarding PCP. I’ve never bought a new bike before, always second hand, so don’t really know much about PCP in practice. I understand the principle of deposit and instalments, etc. What I’m not sure on is the GFV part and how this works,

    Understand it gets valued after the loan period but is it worth it? What if it gets valued under the GFV, or above?

    Is this a good option to take or should I wait to save the money for a second hand one? £99 a month just seems to good to be true on PCP, plus deposit of course!

    Any experience or opinions welcomed.
     
  2. Spygoat

    Spygoat Well-Known Member

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    I haven't a clue as to the workings of PCP, but I can tell you that the advertised "£99/month" claim is under the most ideal conditions and usually is posted just to get you through the door.
     
  3. Nigelg79

    Nigelg79 Active Member

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    Yeah the £99 is what I worked out to be best for what I wanted. Could be more if I added extras or reduced the deposit.
     
  4. Gaffa22

    Gaffa22 Well-Known Member

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    The GFV or balloon payment is guaranteed from the start not after the loan period.
    I had a VFR1200 on PCP as Honda made a contribution of £750 and 0% interest, so I kept my money in the bank. The GFV was £4800, it was not due to finish till January but I decided to sell the bike so I paid up the outstanding loan payments and the £4800, I sold the bike for £7500, £300 more than I could get as a trade in.
    So PCP can be a good deal especially at this time of year when they are desperate to sell bikes, I just bought a new MT10 SP, could have paid cash for it but Yamaha were offering £1000 off if bought on PCP, But with a PCP deal you can pay it off at any time, so I got a £1000 off from Yamaha and a grand off from the dealer, so it was a good deal.

    Just bear in mind you do need to be able to pay the balloon payment at the end or hope you get offered a good trade in value that will clear the balloon payment and give you a deposit towards another new bike.
     
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  5. Cream_Revenge

    Cream_Revenge Active Member

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    Basically PCP is a loan for the difference in value from the purchased price and the GFV.

    Watch the mileage as you'll need to pay if you go over and hand the bike back.
     
  6. CharlieR85

    CharlieR85 Elite Member

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    If your blade is worth roughly what the balloon payment is and you have the money for the PCP deposit on its own then it might be convenient to keep the money from your blade in the bank and use it as the balloon at the end of the 3 years. You should be looking for a decent deposit allowance thrown in (£500-1000) and something under 8% Apr (triumph aren't very low at the minute).

    The other option is to sell your blade and borrow the difference from the bank for a lower Apr, 3.5% is about as good as you can get at the minute. You should be able to haggle 10-15% off the list price or 10% worth of accessories going down this route.
     
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  7. Barstewardsquad

    Barstewardsquad God Like

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    If you can pay it back inside 2 years have a look at 0% credit card deals. Fee can be under 3% if you look around. I recently did this for a bathroom refurb and did it for just over 2 years with a 1.9% fee, but that was before the latest interest rate rise.
     
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  8. Nigelg79

    Nigelg79 Active Member

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    Thanks all for your helpful advice. Decided not to go through PCP as I’d like to own the bike and not pay over the odds for it. Will explore credit card or loan options too, will have to wait and see what I get for my bike first!
     
  9. dainesefreak

    dainesefreak Senior Member

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    Remember you can just give the bike back at the end and walk away. However it's in the dealers interest to give you a deposit/deal at the end to get you onto another bike.
     
  10. dessp2

    dessp2 Well-Known Member

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    PCP is a burden. It is allowing some people access to vehicles they can’t really afford. Imagine paying for something for three years then having to take a loan out or re finance to pay the lump sum off. Some folk say PCP will be the next PPI or Endowment Policy scam. Plus we all know dealers are piss takers and they show no loyalty to you on part ex values.
     
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