Ugh, Its a financial mind field it really is. Its 200 quid a month, the way I look at it it's 50 quid more that what I make in profit from renting out my flat, whilst keeping the full amount in my bank and not skinting my self. I don't think its an extreme purchase tbh, soon I'll probably have a missus that doesn't like me, 2 kids I hate and be driving a 15 year old diesel X5 with a fat chance of being allowed any fancy bikes. The faff with selling my 899 is putting me off buying outright as well, christ I hate Ebay.
Here’s the same mate. This place hates a bargain, but does love to overpay. I’ve suspected for some time that it’s a forum owned by that Sheffield bikes place
At some point in the not too distant future, there will be an almighty financial crash on petrol/diesel driven vehicles. Those with new vehicles on a PCP with a GMFV will be the winners then. There are rumours that electric company cars will have zero benefit in kind in 2020. That will hit second hand values of all petrol/diesel cars very hard.
[QUOTE="duke63, post: 1497287, member: 157"There are rumours that electric company cars will have zero benefit in kind in 2020. That will hit second hand values of all petrol/diesel cars very hard.[/QUOTE] Why will it affect the used car market?
Because you will get a glut of used petrol/diesel cars from the company car market as buyers move to electric vehicles to avoid the £300 per month tax bill.
@duke63 has said above, protecting your residual value is going to be important over the coming years. On cars, we have a 2 year old Land Rover and 9 year old Shitroen C1. Both owned outright from new. Last time I will ever ‘own’ a car. our plan is to run both into the ground then PCP or PCH. Legislation is driving this change in buying behaviour for us, not finances. Depreciation curves is something I know a bit about having spent c20 years in the leasing industry in a previous life. For some reason I think differently about bikes but I did sell my V4 earlier this year as I was concerned that they were loosing value too fast. I hate to say it but I think I was right. I have instructed myself never to buy a new bike again but I will probably waver on this TBH. Difficult to resist sometimes, but, that’s what man maths is for innit?!
I’ve always bought my main bike (have a few older pride and joys) at 1-2 years old after someone else has suffered the bulk of the depreciation and have either bought outright or financed through a bank loan. I’m not against the idea of PCP, but I think before you embark on it you need to think about what your plan is long term. If you intend to swap it every 3 years for a new one then you need to think of it as a rental bike which you are paying a monthly amount for. The bigger initial deposit you put down the smaller the monthly payments are, but you will never see your deposit money again and the interest rate you’ll pay is more than the interest rate on a bank loan, but you get a new bike that’s got no hidden nasty past, is covered by a warranty and dealers like and encourage PCP so are open to giving incentives and freebies to get you signed up. You also have the peace of mind that depreciation, resale value and the hassle of selling isn’t your problem. Simply give it back and get another. Another Ducati that is as you’re tied to them. Unless you pay the settlement amount or hand it back and walk away with nothing. If you intend to buy the bike at the end then I wouldn’t bother with PCP. I would try and finance it with a bank loan over 5-6 years. This is the same time period as having it on PCP for 3 years then taking a loan out 2-3 year to pay off the settlement amount. You’ll pay a lot less interest. I appreciate this isn’t always as easy as it sounds as a bank might be happy to lend £10k but not £20k. There’s no right or wrong answer to this, it’s down to personal choice and circumstances.
Already happening, due to the very recent and total u-turn on diesels. A mate has just brought a Tesla thru his business and says its zero rated BIK
If this is a main bike and used everyday, or most days, then a PCP option would be worth considering, especially if you just plan on handing it back at the end of the period. If you want to own it at the end, then HP is a better route and you know what your costs are monthly. However, if there is a bike you have always lusted after and you will use it enough, to ensure you get enjoyment, but not too much that you devalue it excessively, then I would go hunting for that keeper you always promised yourself, which would mean a total purchase (equally can be done with HP). You need to decide on whether you are buying because you need it, or lust after it! Financially, if you can afford a total purchase, it should be cheaper in the long run when you add everything up, especially as the interest on savings is so low.
Profit, what does profit mean smart arse? Means an amount of money left over after all costs, including mortgage, maintenance and letting agent fees.
That's another thing, I'm looking at what to do with the 13k left over after paying the deposit and there's nothing on any ISA comparison sight that gives me a tickle. I think it's more that I like having 5 figures sat in the bank, it's a personal thing. And I reckon I'll lose less on a pcp than I would buying outright. I lost 1700 quid in 5 months on a 5 year old panigale ffs. The amount of these they're gonna sell I think pcp is the safest option, as long as you've got the doe in the bank to buy outright if you needed to at any point I think it's alright.
He bought (well, leased) a car so it is a company car not private as it meant he could get benefit in kind at zero. Not sure if he can claim VAT back, but he can claim all running expenses. Which makes it far better than simply claiming mileage thru his company
If he's VAT registered he can probably claim back (may just be for commercials though, hence popularity of pick-ups) I'd have thought running costs would be minimal for the TESLA but saving the monthly whack should be advantageous
You can claim half (10%) VAT back on a car or the full 20% as you say on a commercial vehicle such as a van or pickup.
The only bike I’ve ever lost money on is my Scrambler, because I bought it new, every other bike I’ve bought by offering an offensively low amount, here typically is how; Bike is advertised at say 5k, I believe a good price is 4,250, so I say “I know it’s a bit of a tough question and I do like the bike but what’s your bottom dollar?”, seller says 4,500 So I offer 4k, seller gets a bit hot under the collar but rarely physically attacks, We agree to disagree but as I walk off I say “look as I said I do really like it, you’ve kept it really well, I’ll stretch to 4,250 but that’s more than I can afford tbh”, it almost always works Then when I come to sell I advertise it on eBay with a really long positive but truthful write up, starting bid 4,250, I remain firm at 4,250 bottom dollar, works for me, would I ever buy another new un, no!
