OP­TION 1 PER­SONAL CON­TRACT PUR­CHASE

Motorcycle News (UK) - - 88 Brilliant New Bike Deals -

Most deal­ers of­fer PCP schemes through one or two big fi­nance houses – this is how it works... O Get your bud­get worked out, based on what you can af­ford as a de­posit and as monthly re­pay­ments for the du­ra­tion of the con­tract O You can get PCP on any amount from £1500 up­wards O Choose your new mo­tor­cy­cle (or a used one – bikes up to three years old can also qual­ify) O Set a re­pay­ment term of be­tween two to four years O Set your an­nual mileage at up to 24,000 miles a year. Your an­nual mileage will af­fect your monthly pay­ments and fu­ture value. Most deals are based on 4000-6000 miles O De­cide on which end-of-agree­ment op­tion is best for you when the time comes – most roll on to another bike

This op­tion’s great if... O Not own­ing the bike out­right doesn’t bother you O You like to keep your op­tions open O You’re look­ing for flex­i­ble de­posit op­tions O You can work with a mileage al­lowance of up to 24,000 miles a year (more will in­cur penal­ties) O You want to pay over a pe­riod of two to four years in reg­u­lar, rel­a­tively small, monthly pay­ments O You want to pay equal monthly pay­ments across the term O You are wor­ried about an un­ex­pected fall in the value of the bike (thanks to the ‘G’ in Guar­an­teed Fu­ture Value)

At the end of the con­tract... When your con­tract comes to an end you have three op­tions: O Part-ex­change the mo­tor­cy­cle for another one – sub­ject to set­tle­ment of your ex­ist­ing fi­nance agree­ment O Re­turn the mo­tor­cy­cle. If it’s in good con­di­tion and has not ex­ceeded the al­lowed mileage you will have noth­ing fur­ther to pay O Hand over the fi­nal pay­ment fig­ure and can keep the bike

Be aware that... O You do not own the mo­tor­cy­cle and won’t un­less you pay the fi­nal bal­loon fig­ure O A sig­nif­i­cant pro­por­tion of the credit is de­ferred un­til the end of the con­tract, and it’s not the cheap­est route to own­er­ship O You must have fully com­pre­hen­sive in­sur­ance O Ex­cess mileage charges ap­ply O Abuse or ne­glect will dam­age your bike’s GFV O Your mo­tor­cy­cle is at risk of re­pos­ses­sion if you do not main­tain con­trac­tual re­pay­ments

‘I bought on PCP’

Carl Stark bought his Kawasaki Z1000SX on a PCP deal in the sec­ond week of July from Bowen Moto in Chatham. He has put 900 miles on the bike since new and now pays £122 a month, af­ter an ini­tial de­posit of £1500. This bike was priced at £9695 and came fit­ted with mods in­clud­ing a tail tidy and top box. Carl opted for this scheme be­cause it’s cheap and the re­pay­ments are low; he al­ready runs another bike and two cars on PCP.

The deal al­lows him to ride for 6000 miles per an­num and he says that’s more than enough – as he only uses the bike as a sum­mer toy. Pay­ments are spread over three years and then there is an op­tion to pay off the rest of the bike, how­ever Carl says: “The op­tion to trade in af­ter the third year and get a new ma­chine is very at­trac­tive.”

You could be grab­bing the keys to a new bike for less than you imag­ined

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