Buy a new bike and take your adventurer off-road

Best funding options and dirt tips

IF YOU’RE FORTUNATE enough to have the money, there is lots to be said for buying a bike brand-new. The benefits are obvious — you’re getting the latest tech, a warranty and a machine that is unsullied by unknown idiots. For peace of mind, there is nothing better.

But like everything in life, you’re going to have to pay for the privilege.

That means there are four ways to achieve your dream: cash, a loan, HP finance or PCP. Here we look at the options for buying a BMW R1250GS, Britain’s best-selling bike. We’ve based the figures on the fact you’ve got £6000 towards the new bike from trading-in your old machine and/or saving up. The price is for a basic R1250GS at £13,845.

BMW PCP

There is no getting away from the fact that buying a bike on PCP can make even the most-expensive machine affordable. Payments are split into three parts: deposit, repayments and then a final payment based on the machine’s value if you want to own the bike. It means you can, if you want, have the keys of a GS for either a minimal deposit or a small monthly payment, but not both. Final values are mileage-dependent - our figures are for 5000 miles a year.

BMW’S PCP deal only allows around 40% of the amount payable as a deposit, so the maximum you can put down is £5538, and then pay £81.27 a month for three years at 9.9% APR. You’ll need to find £7718.28 to own the bike, or you can start another PCP deal straight away and put the equity between its final payment figure and its actual trade-in value towards the new deposit on the next bike. Or you can just give it back and walk away.

Or you could go low on the deposit – if you put £2000 down, you’d be looking at £194.56 a month and but have £4k of your £6k deposit in the bank towards that £7718.28 final payment, or as deposit on a new machine. It isn’t the cheapest, but brings affordability for many.

BMW Hire Purchase

Hire Purchase is designed for people who want to own their bike at the end of the finance period. You, in effect, lease the bike

from BMW and become the owner with the final monthly payment. There is no mileage restrictions and it is simple and easy to understand. With BMW’S Hire Purchase, you’re looking £251 for 36 months at 9.9% APR if you put down £6000 deposit.

A personal loan

If you want to keep your bike after you’ve paid off your finance, this could well be the best option. The loan is secured on your overall assets rather than just on the bike itself and you will always be the official owner. Just arrange the loan, get the money paid into your bank and buy the bike. Assuming you trade in your £6k bike, you’ll need to borrow £7845 to buy the machine, but fierce personal loan competition means low rates. Go on comparator sites and rates as low as 2.8% APR are easily available for the right people with a decent credit score.

Our figures are based on an easilyattainable loan from Virgin Money at 3.0%. For 36 months of payments, you’re looking at £228 a month and then you’re done. You’ll have paid just £363 in interest.