Finance gurus

[stevemoid]

I'm currently half way through a pcp contract for my current bike. Now it seems my bike is an utter lemon. Whilst Big Mans Wanger eventually fix the issues, new ones arise just as often. As such my love hate relationship with the bike needs to come to an end.

Now I'm not really clued up on the ins and outs of PCP (first time I've used it) but for voluntary termination, I believe you have to have paid 50% of the amount. Now the question is, is it 50% of your pcp deal or is it 50% of the total value? 50% being the pcp and the remaining half being the balloon payment.

I've read a few conflicting articles on this, so does anyone have any experience with this?


Cheers

[D3LS M]

Is it you who has been asking the same question on UKGSer ??

*Edit. Re reading your post again, it must be.

[stevemoid]

Sure is. Trying to get an idea from folks experiences etc purely as I hear conflicting things when reading docs online.

[D3LS M]

I have a Triple black on pcp that I took on last April so a long way from 50% but sure hope I don't have your issues.

[stevemoid]

Aye it's a bit of a pain in the arse. The intention was originally to keep it through the pcp and actually buy it out after that. When the bike behaves itself it's a fantastic machine.

I guess to save losing out on cash I'll just let the PCP run its course and trade it in and leave Big Mans Wanger with it, in a rusty wreck

[RK6]

Bummer about your bike.

Unfortunately walking away early would mean paying 50% of the total balance. So 50% of the purchase price + 50% of the applied interest.

Although it helps to get the monthly payments down (a wee bit) PCP is rubbish if you intend to buy the bike/car at the end of the agreement as interest rates are almost always allot higher.

If you want low monthly payments without throwing loads of cash in at the start, you're usually better off just getting a low interest loan and paying off the capital as you ride.

Better still, use a 0% credit card.

[stevemoid]

Aye, lesson learned with this one.

Och as long as the bike doesn't disintegrate under my feet, I'll plod on with it and then punt it at the end of the pcp agreement.

I've previously either bought them outright or used HP. But pcp seemed the sensible choice purely because the bike is so expensive, they teased me with the low payments.

[RK6]

bar-stewards.

Yeah, the payments are low because they want the capital to remain outstanding for as long as possible so they can charge you up the hoop with interest.

Still, it's an easy way to chop and change bikes/cars without any stress...

Hope the 2nd set of components last longer than the first!!

[stevemoid]

Hope the 2nd set of components last longer than the first!!

aye here's hoping. If not, they'll get a rusty shed when it's time to hand it back. Try making money from that.