PCP for OAPs

[Deleted User 18446]

I'm 67 this year and fancy new scoot with abs and being able to give it back at 70 is tempting. I also think now have my van go 125 as lighter and buy the honda service package 3 service for £375 .
Now it could be get to 70 and want to keep it . Deposit then £59 a month 36 months .

Any one else done it I know lot of commuters do it but this is pure leisure purposes. Also the weight saving and abs have few old scooters but none have abs .Would then get them sold one buy one .

[Greyerbeard]

No reason why not - the Forza 125 is a very capable and efficient little thing (it may feel small and the ride hard after a Tmax...) and there are options of what to do after 3 years - if you want to keep it you can always get a bank loan, pay off the balance, and continue paying by drip. Or just get another new one and start again!

[horobags]

Do it.

[Deleted User 18446]

I could buy outright it was more the convenience of handing it back .I've ridden a 125 in France 2 up tootling around kept up with traffic okay .I recon solo be okay for 60 without stressing it out .I usually buy used but 125s tend to get thrashed so more if an unknown.

[StephenC]

I was going to do something similar as I edge towards retirement. The plan was to get the Forza by paying the deposit and then a small monthly fee while simultaneously putting money aside to pay off the "bubble" payment at the end (to give me options for whatever comes next).

So originally the idea was that I would roll onto another Forza (or whatever I fancied) this coming May, as a last scoot which I would then hand back at the end of the next 3 year term to coincide with my retirement plan - after which I wouldn't need one. This way I would only have paid 2/3 of the cost of that last scoot.

As it turns out, with Covid and mostly homeworking now and for the foreseeable drastically cutting my mileage down, I am going to keep the current Forza as it's not worth changing it. The money I have been putting aside doesn't quite cover the bubble payment (I've been spending some.... ) so a small loan should cover the balance.

[Data]

PCP's are a very convenient way of making a purchase or just renting it. Although I've never bought a bike on PCP. But be careful as it can work out much more expensive to do it that way. Also, when you make the deal (beginning or end of a month or quarterly period) can be crucial as to how much you actually pay for the bike. Here's my example but with a car. It still pretty much applies to bikes too but with the covid situation and a bit of a shortage of bikes and cars things may be slightly different just for now.

My current car is a Citroen. After years of buying VAG group cars of all sizes I decided enough was enough (too many big issues with engines and gearboxes) that I decided to look elsewhere. I normally buy new and the Citroen was no exception. Previously have used PCP's to fairly good effect and was pleased with the deals. However, I decided to look closely at the PCP deals on offer from Citroen and other companies this time as I had just retired fully . What I found was quite amazing. My Citroen was available with 0% PCP. Cost of the car was just under £20k at the time. The PCP deal brought the price of the car down to just under £18k. Other makes of car offered similar deals. Went through all the 'Carwow' stuff and that was quite good at providing good quotes. So went to my local dealer who was NOT on Carwow and asked what they could do.

The local Citroen dealer was of course pleased to see me...and promptly worked out a comparable deal to the Carwow deals, but because he was not on Carwow he could give me a bit more discount. Every dealer on Carwow has to pay a fee of £360 to Carwow to make a sale through them. It's probably more now and may vary depending on the car that is sold. That money comes out of the price/profit the dealer makes. This means Carwow dealers can't offer quite as much discount to customers under normal circumstances. Anyhoo...with the price of my new Citroen at just under £18k on a pcp deal I asked how much the car would cost if I paid cash. Right away the saleman disappeared and came back with a completely difference price! The cost of the new car came down by over £4,000. I actually bought my new car at just £14,550 otr. This was made up by giving me an extra £1k for my trade in and another £3k off the retail price! Just because I was willing to pay cash.

One very good reason for this sudden reduction in price was due to the fact the dealer wanted his dealer bonus for the quarter which my car was crucial in getting him. The bonus is what many dealers depend on these days to keep them going. It amounts to many tens and tens of thousands. I won't tell you how much as your eyes will water. Without it things get hard for the dealers as they don't make that much generally on new cars these days. So my car was sold to me pretty much below cost as they make just 14.5% profit on new cars. He would break even though or just above that on money made from my pristine trade in.

Often when you work out how much you actually pay for a secondhand bike or car if bought on finance, it can work out more expensive than buying a new bike or car especially if you are looking to buy a bike or car that is just a year or two years old. Just depends on the finance deal and price you can haggle. Good hunting Sagalout!

[MrGrumpy]

PCPs are OK, but expensive in the long run. What's the most expensive part (by far) of buying a new car or scoot? The depreciation in the first couple of years. With PCP, this is exactly what you are paying for. The monthly payment is quite low, but you don't own the vehicle. So you have to pay again at the end or hand it back, and, as most people do, get straight back on the financial treadmill by starting a new PCP deal! If you are earning a decent wage and like to swap vehicles frequently, then a PCP may be ideal.

Much better, albeit long term, to look for a nearly new vehicle (£000s cheaper than the new price) and take out a conventional loan at current rock bottom interest rates. At least then the vehicle is yours to do as you want. IMHO!

[Deleted User 18446]

My main concern was buying a used 125 never bothered me on any others .Plan was pack up at 70 give it back .

[Deleted User 18446]

Breaking news enquired at local honda about delivery time on 125 and 350 .As has been stated no stock of 350 have to put deposit down .They have been told by Honda 2 red 125s on the way that are unsold that's colour I fancied.

[StephenC]

PCPs are OK, but expensive in the long run. What's the most expensive part (by far) of buying a new car or scoot? The depreciation in the first couple of years. With PCP, this is exactly what you are paying for. The monthly payment is quite low, but you don't own the vehicle. So you have to pay again at the end or hand it back, and, as most people do, get straight back on the financial treadmill by starting a new PCP deal! If you are earning a decent wage and like to swap vehicles frequently, then a PCP may be ideal.

Much better, albeit long term, to look for a nearly new vehicle (£000s cheaper than the new price) and take out a conventional loan at current rock bottom interest rates. At least then the vehicle is yours to do as you want. IMHO!

I think you and Data have missed or at least downplayed the key points in Sagalout and my posts:
(i) our plan is to give back the scooter at the end of the term, thus avoiding the bubble payment as they are likely to be our last scoots (well, new anyway....). This is approx a 30% saving on the price of a new bike, which comes with warranty and (for me) service plan, etc, and
(ii) the deposit and monthly outlay are much less than taking out a loan as the total to repay will otherwise be the full price of the bike.

Agreed though, if you keep the PCPs rolling, it can end up expensive.