GET MORE FOR LESS

Af­ford­ing a new or used bike has never been eas­ier thanks to Per­sonal Con­tract Plans

Motorcycle News (UK) - - Summer Sizzler Pcp Deals - By Richard Newland DEPUTY ED­I­TOR

While bikes have never been bet­ter value than they are right now, we’ve also never had more things fight­ing for our money. But PCP is about as close to a win:win sit­u­a­tion you’re ever likely to get where mo­tor­cy­cles and bank bal­ances are in­volved.

Per­sonal Con­tract Plans have gone from be­ing a rare odd­ity in our world to tak­ing 20-30% of the new bike fi­nance market, and it’s grow­ing fast. If we fol­low the trend of the car market, over 90% of fi­nanced new bike pur­chases could be on PCP in five years.

But it might not be right for you, so make sure you fully un­der­stand what it is and how it works. The fig­ures look crazy for some makes and mod­els – but it’s not as mad as it might seem.

The up­shot is that you can have these new bikes for less than you might ever have imag­ined – and what’s more you can have another new one in three years’ time, prob­a­bly with­out in­creas­ing your monthly out­lay, or hav­ing to find a fresh de­posit. The only catch is that the bike won’t be owned by you un­less you make the big fi­nal pay­ment.

The sys­tem works by let­ting you pay for the bike’s de­pre­ci­a­tion (plus the in­ter­est), rather than the full re­tail price. Add in a de­cent de­posit, and you’re only pay­ing back a small chunk of the loan value, which is how you get such a tempt­ingly low monthly out­lay.

So what’s the catch?

At the end of the con­tract pe­riod, you don’t own any­thing, and in­stead have a de­ci­sion to make: do you pay off the out­stand­ing amount and keep the bike; give the bike back and walk away ow­ing – and own­ing – noth­ing; or do you roll your PCP deal on to a new bike?

Most will use the eq­uity in the GFV as a de­posit, and roll onto a new PCP deal. But be aware that you might not have enough eq­uity to do this, mean­ing you’ll need to find a new de­posit.

What am I re­ally pay­ing for?

You’re ef­fec­tively en­ter­ing into a longterm hire agree­ment, so if you run the bike into the ground you’ll end up hav­ing to pay more than the agreed value at the end. But if you check the in­ter­est rate is com­pet­i­tive and re­search the fu­ture val­ues of sim­i­lar bikes, keep your bike ser­viced and in tip top con­di­tion, you can’t go far wrong.

‘You’re ef­fec­tively en­ter­ing into a long-term hire agree­ment’

What­ever style of bike you’re look­ing for, with the depth and di­ver­sity 2017 has to of­fer, you’ve never had it so good

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