Not sure if this has been covered but for those wanting to know... V4S £24,035 Deposit £5,874.73 36 x £249 Final payment £12,456.00
Someone's earning nicely out of that one! Cheaper to get a loan if required and pay that off instead.
VAG (and most other vehicle manufacturers) are pretty much a high cost bank these days. I regularly get emails offering me "special" deals at 9.9% APR on Audi cars. 5.9% is what above approximates to, but still silly money compared with what you can get a loan for. Pete
You could save yourself at least £8000 and get an RSV4 RF 2017, that's a lot of trackdays and accessories.
GFV is the missing interesting number here... If you have willpower and view that PCP means you're financing (and paying interest on) the depreciation, and you're putting 1/36 of the final payment away into the bank each month (won't even bother calculating the negligible interest there - perhaps buy some premium bonds each month?), pay your deposit... budget £595 each month and 36 months later you own a V4 and your finance has cost you around £1,100 a year. If that looks like a good deal then that's your deal.
Quote I received was £1000 deposit down and monthly payments spread over 36 months. Approx £350 per month and hand bike back after terms finishes. TAP = £13,600 for three years use or £377 month. As opposed to original example posted of £14,838.73 for three years use or £412 month. In both these examples, I have assumed that unless you could find a very favourable loan for the balloon payment, you wouldn't keep the bike. Alternatively if you are lucky enough to have a large deposit available or PX a bike in as part of the deal, you could offset the cost further, with a low rate bank loan since there would be much less residual capital to pay off. Either way, its a costly way of getting smiles per mile.
I'm not a big fan of PCP. You need a big deposit, pay crap interest then get saddled with a big final payment unless you walk away, but if you walk away you've technically kissed your initial big deposit goodbye. However for a deposit of £1000 I'd look at it differently. I'd be prepared to kiss the grand goodbye which equates to just over £300 a year over the 3 years. Then look at the monthly payment as rental payments the same as a leasing a car. Then at the end of the 3 years walk away and not worry about being tied to swapping it for another one, final payments or having to have sunk a big deposit in the first place.
PCP will always be rigged to get you to either pay through the nose and then hand the vehicle back, or will make the balloon payment so unaffordable that you'll trade it in for the next model and start again. That's why it's called the "never never"... As above, you're better off negotiating a discount for cash and taking a loan out to cover it from a bank, if you intend on keeping the vehicle at the end.
But you don't walk away do you. You just get another one with the deposit carried forward. You just become loyal to the brand (by default) and just rent your bike/vehicle forever and a day.
or sell it or trade it in. A bank loan is not tied to a vehicle so no problems getting rid. In my example above you would still owe £8686.96 in repayments after 3 years. I'm fairly sure a £24k Ducati will be worth more than that in 3 years time unless mega miles or crashed/knackered. And with PCP millage and condition are looked at when handing back and big costs can be incurred.
Why would you need a loan for the balloon, you've got 3 years to save the money? Also, given that most people seem to do quite minimal mileages on their bikes (@royalwithcream notwithstanding)... now calculate the £ per mile over those 36 months... If you do 9,000 miles for your £13,600 or whatever then that's £1,51 per mile before servicing, insurance, tax, tyres or fuel... hahahahah (and if you're a 1,000 a year person then you're probably looking well over £5.00 per mile!)
I was assuming marginal cases where an individual might not be able to afford to save (as in the OP's example final payment of £12456.00) an additional £346 per month, which would mean a total monthly outgoing of £595 per month. One of the reasons PCP is as popular as it is, are the obviously low monthly payments (which come at a price granted). To be fair if you were able to pay just under £600 month you'd be better off getting a bank loan in the first place (typically 3.2%APR at present) which means if you borrowed say £24000, you'd pay around £432.89 per month with a TAP of £25,973.58 (figures supplied by the Post Office as an example here), which equates £162.11 a month cheaper or over 5 years, equates to a saving of £9726.60 compared to a full term PCP loan, which few people would opt for, for that very reason. Additionally if the bike had fair mileage on it and was kept in good condition, if you sold the bike after three years, you'd only have to clear £10390 to pay off the loan, which even given depreciation, the bike would be worth considerably more. Just my simple man maths here so not necessarily correct.
It's not for me to judge whether people really can afford the bikes they ride, or whether clever financiers make it appear that they can...
£24,000 = 1 x used 899 Panigale + 1 x used Multistrada 1200 + 1 x used Scrambler Icon That's all bases covered, you could even afford a bag of chips for the way home.
