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Thread: BMW PCP should I ??

  1. #1
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    BMW PCP should I ??

    I’ve never done PCP before but it looks quite appealing in that when the term ends I will have the funds to pay off the bike.

    Any pitfalls I need to watch out for ??
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    If you intend to purchase at the end then look for the lowest interest rate possible. 5.9% or lower.

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    Remember that your only renting the bike until all the balances are paid off.
    Have a look at the details of the agreement ie the actual total amount of interest your paying not the
    interest rate.

    If your happy with that then sign up.
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    If you are sure you are going to pay it off at the end, then buy with a personal loan... you will own it from the get go, and pay far less for it in the long run. As others have said, don't get confused by % rates... just simply calculate what you pay in cash at the end of the deal. The PCP will give you the opportunity to change your mind and hand it back or sign up again. Keeping it long term? Don't use PCP... imho

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    Check that your intended insurance fully covers a bike not owned by you. Some don’t accept it.
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    As already said, if you intend keeping it get a bank loan or similar, if pcp you have options to change whilst the pcp is still running and BMW will be very keen to keep your custom. My dealer told me recently that very few customers run their pcp to the end preferring to change for a new bike before the pcp runs out. Any value that's in the bike when you decide to change can then be used as a deposit on a new bike. Just my 2 pen'th.

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    horses for courses, you don't always pay more in the long run, to many variables.

    If you are happy with renting and upgrading, go for it.

    I have done both pcp and cash.

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    Quote Originally Posted by andyscott View Post
    horses for courses, you don't always pay more in the long run, to many variables.

    If you are happy with renting and upgrading, go for it.

    I have done both pcp and cash.
    Surely you always more under PCP than cash (unless there is 0% interest) ? Or are you assuming you invest the cash freed up from the PCP or something?

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    M and S have 2.9% loans. Perhaps look at a 4 or 5 yr loan and its monthly payments versus a PCP and see which one comes out cheaper ? When you have the funds to pay it off, do so

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    If you cant pay for it up front then buy something that you can afford, im a bit old and live well within my means thats the way i was brought up and its never harmed me. neeer during the war.

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    Quote Originally Posted by the voices View Post
    If you cant pay for it up front then buy something that you can afford, im a bit old and live well within my means thats the way i was brought up and its never harmed me. neeer during the war.
    Love all, trust a few, do wrong to none.

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    I had a PCP last June, was only 7.5k, bike got stolen this June, insurance gladly met the outstanding, got my deposit back & the interest for the whole year, so in effect I got a years free biking..
    The deal came up at the right time & thought bike was a bit of a bargain, IF I waited to afford it outright I would be a lot older & missed the deal, so it’s not always good to wait.. nearly a missed opportunity

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    I think I'm correct in saying that the attraction of a PCP is that with a very low deposit (often contributed to by the manufacturer), the amount borrowed only relates to a small proportion of the actual retail cost of the bike, therefore the monthly payment is low, thus making the deal far more affordable for many (who possibly could not consider a new bike otherwise)

    However, borrowing money in the form of a personal loan means that you may need a larger deposit to put down, and you have to finance the whole cost of the bike meaning that the monthly payment is much larger.

    It's a question of what you want to pay but you get nothing for nothing and the deal is designed to sell more bikes but still favour the manufacturers profit

  14. #14
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    I’ve used PCPs, loans and cash. PCP is the way to go if the dealer (or manufacturer) is giving a decent contribution towards the deposit. As an example, my BM dealer was recently doing the RnineT Racer S with over Ł3k deposit contribution, which was a total no-brainer. It was cheaper than buying a year old model!

    Any financial agreement will tell you the total amount paid at the end of the term (I think this is a legal obligation but I stand to be corrected). Anyway, to see what’s the best value compare the full amount paid over the term of the PCP with the total amount paid on a loan and there’s your answer.

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    Quote Originally Posted by jimbo View Post
    Surely you always more under PCP than cash (unless there is 0% interest) ? Or are you assuming you invest the cash freed up from the PCP or something?
    So if I get a bike cash and try to sell it to the dealer after 3 years, you will get rock bottom price.

    On a PCP you generally get more

    That's how I find it others may not

  16. #16
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    Quote Originally Posted by the voices View Post
    If you cant pay for it up front then buy something that you can afford, im a bit old and live well within my means thats the way i was brought up and its never harmed me. neeer during the war.
    Buy all of your houses outright with cash?

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