Never a borrower or a lender be.
My thinking is that if you get a loan, then you have a loan to pay for as well as the bike, and now that cash is king again, you pay more for the bike when you take a loan, and then add in the hit from depreciation.
PCP might be better than a loan or not, but surely a shroud cash buy is hard to beat. If I ain't got the cash, then I can't afford it.
Anyway what about older bikes. There's many ten year old summer sunny Sunday bikes popping up for sale now and again. If I can find some cash in the spring, now that my garage is almost finished, well I might just...................
If I'd gone by that philosophy VNA, I wouldn't have enjoyed half the bikes I have over the years. I don't regret any of them (well, maybe the Superdream! - but that was bought outright for cash). I never have more than one loan at a time, I've never had a credit card or other debts at the same time, and I've always paid the loans off early. And one thing that has meant, is that whenever I go to my bank for a loan, the answer has always been "yes". But I have always also saved up a good deposit to keep the monthly payments as low as I can. Works for me.
Well theoretically if you'd have followed such a philosophy, you might have been able to enjoy half as much bikes again!
How can paying considerably more than you otherwise have to allow you to enjoy more bikes?
Of course the problem is sticking to the philosophy. It's just too easy to dip yer pocket. Whereas the bank loan gets you the bike when there's no money in your pocket.
Anyway you are speaking to a man who can quickly list all the bikes he's owned over the last 27 years;
Honda C90
Suzuki GS500E
CBR600F
Fazer600
Fazer1000
That's it! Oh dear! Had shots on a fair amount of other stuff, but I'm aware that the grass is always greener!
Bought my current bike, the thou, band new in 2004. I think it's a keeper, but now I have a garage for the first time in my life, I might add another.
Lol, that's why I can never save outright for a bike. Money just burns those pocket holes too deep and too fast! If I get a loan/finance, that money is committed, and then I know I can't touch it for anything else, and I'm good at the discipline about that.
Yes, garages are dangerous things, (aren't they red98?! :lol ) Now, if only I could clear some of my ol' man's junk out of his garage.......
(26-10-13, 12:28 PM)paulkemp link Wrote: I got my 2011 FZ8 on pcp.
£500 depsosit £99 a month.
3 years hand it back and get new one. 
Get enough back out bike to cover deposit for new one so will just be the monthy "rent"
Happy days
So providing you have no "extras" to pay at hand back it's costing you a tad over 4 grand over 3 years.
Is that good or bad?
Interested in your last sentence, what do you mean by "get enough back to cover deposit for new one" ?
Let me see if I've got this right. So, you go to your local dealer, and under the terms of the particular PCP scheme they do, you work out what deposit to pay, and work out how long you want to pay the finance over. So far, just the same as any finance. But you also agree the GFV = Guaranteed Final Value, at the end of that term, i.e, what the dealer will give you for the bike as trade-in value if you swap for something else at the end of that contract. So you're not paying for that part of the cost of the bike. So say the bike's cost new was £8000. You subtract the GFV, say £4000, leaves £4000 to pay. You put down a deposit, say £1000. So your monthly payments are only for £3000, over whatever length of time you want to pay it, 1, 2, 3 years, whatever. Of course, you are paying interest on the finance, but as it's on a smaller amount than if you were to finance the whole cost, it should be less.
Then, as long as you return the bike at the end of the contract in the condition as agreed at the start, having serviced it as and when required, in standard trim, and within the agreed mileage limit, you get the GFV amount to use as deposit on the next bike, for which you start a new finance agreement. Or, you hand the keys to the dealer and walk away, nothing owed.
Sound right?
Think you hit nail on the head there Nick.
My car is on pcp, my last one i thought id keep but it was really unreliable so my plan now is to do the 3 years and then decide whether to keep it or not based on if i like it or or if it is reliable.......however what if i do wanna keep it then i gotta cough up the outstanding on it from its new price minus what ive already paid....& where the foc am i gonna suddenly produce this sum from.....nowhere....so ive gotta really put that money aside each month anyway which makes it no different to just financing the full price & and id still get the car......or selling the car if i don't like it...
Far as i can see the dealers/finance company are really banking on me forgetting to save my payments or not being disciplined enough & spending it on other stuff each month......thus tying me in forever and ever in a perpetual finance spiral.......so basically leasing the car....
Only bonus i can see is if i lose my job i can afford to keep driving coz the payments are so low....ats about it. IMO 8)
Dont know why i did it, actually it was more the dealers mistake & i went along with it but im saving the extra nicely so far but its annoying remembering to save it each month.
Easiest way to go fast........don't buy a blue bike
Yes, but isn't it different with a bike? What I mean is, we ride bikes for fun, more of a hobby. So if you want to try different bikes, you start a new contract at the end of each old one, and get something different, or whatever appeals. Yes, you're keeping finance going all the time, but you can drop out at the end of any contract. For me, I would have my Fazer all paid off before I started such a scheme, so if I quit the PCP at the end of a contract, I'd still have a bike (and a foccin good one at that :lol ). And nothing owed on finance.
With your car Noggy, you just want one to own outright, run it as long as is financially/mechanically viable. It's a work horse, you're not looking to get a play with all kinds of different cars. Do you see what I'm trying to say?
Ye that makes sense Nick, & basically means that you cut out all the bullshit trying to sell your bike every 3 years as the whole process is geared to go via the dealer instead of bloody bike trader or whatever with a private sale....& like you say the worst case is that you say thanks but no thanks,hand them the bike back then go home & get the old faithful fazer out to play.
Damn you nick you already talked deadeye into a new bike......now you got me thinkin about it....plus with ogris just do it attitude ill be debted to oblivion soon :lol
Easiest way to go fast........don't buy a blue bike
Well, the reason it would work for me is I don't have any other commitments - bikes and that's it. Once you got a mortgage, wife and kids and all the rest of it, obviously you've got to be more careful about your financial commitments. So don't let me persuade you to jump into it!
I've always lived that way - remember the movie "Heat"? And DeNiro's character says something about being able to just drop everything in a moment and foc off? Well, I can't quite be like that, but I've always tried to be as close to that philosophy as I can within certain parameters. Never more than one finance agreement from it anyhow! :lol Having lived thro several periods of unemployment, living in crappy one-bed flats, scraping pennies just to eat - I'm always thinking what to do when that happens again. It's living with uncertainty all the time, and many folks couldn't hack that way of life. But when I do have a period of stability, I tend to lash out and do as much as I can, before it all disappears again. Next week/month/year, I could be homeless and unemployed, but I'll deal with that if and when it happens. It doesn't affect anyone else with me. And I've always got me tent! :lol
Dont worry Nick you can stay in my shed with the fazer...the wifi signal should reach so you can still get access to foc-u...what more do you need  ...ii love the film HEAT, i had it on dvd but lost it...i can watch it over & over again....total classic & gotta be my favourite fire & manoeuvre scene from a movie...but then i am watching Weaponology right now on TV & then im gonna go on my xbox online & play a bit of battlefield3 so i am biased towards anything with guns right at this moment in time.
I see what you mean & say just go for it, like you say you never know whats round the corner.....
Soooooo.....have you narrowed down what bike your gonna get???.......i would go total overkill & get a 1290 duke i reckon...i wonder how much one o them is on pcp.
Easiest way to go fast........don't buy a blue bike
I don't think I could do this as my only bike. I'd be scared of winter riding ruining the residual's. Also the mileage allowance. I wonder what they imagine is a yearly mileage allowance is?
Mickey
Sent from my villa in the South of France.
![[Image: 73337.png]](http://mefi.us/images/fuelly/smallsig-uk/73337.png)
Yeah, that's a classic movie, one of my all time favourites too. The restaurant scene was the first time DeNiro and Pacino actually appeared in the same scene together, a real head to head of 2 great talents. I loved Pacino in Donny Brasco too, he played that so natural. What was the name of that film they did together about the 2 cops, and Pacino turned out to be a serial killer? I was a bit disappointed in that - good, but not great, I thought.
Jeez, Noggy, you won't turn out to be a Milford version of Rambo or something will you?!! "Noggy's back, and this time he's got the Noggyfighter!!!" :2guns Remind me never to upset you...... :lol
Nah, I gotta pay off this one first, financed over 2 years from last May. But could conceivably clear it by the end of next year, then save a deposit (if things run smooth til then of course) and then...well, maybe. At this stage, it's just something to consider. Winter's coming - gotta have something to occupy my thoughts. That Duke and one or two other KTMs would be on my list tho. I find myself buying any bike mag that's got a test of those, and that's always a dangerous sign! :lol
(28-10-13, 09:20 PM)fireblake link Wrote:I don't think I could do this as my only bike. I'd be scared of winter riding ruining the residual's. Also the mileage allowance. I wonder what they imagine is a yearly mileage allowance is?
Mickey
Yep, you gotta look after any bike you have on this Mickey. From what I've read, mileage allowances vary anywhere between 6000 miles, and BMW apparently have one deal that allows up to 20,000 miles. Absolutely agree, would not want to do it as my only bike - for one thing, you can't mod it how you like, cos you've got to give it back as standard - hence paying off mine before I decide. But another thing, if you do it that way, it would help to keep the mileage down a bit on your own bike too.
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