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Having been biking for only 3 years my first big bike is my current AT DCT 2017. At that time it seemed to me the average price of a bike was around £11k, going to the motorbike show last weekend in london this average appears to be more like £15k. In the UK I think we are all so focused on PCP that manufacturers seem to me to be ramping prices almost safe in the knowledge that very few out there are actually going to pay cash and hence only interested in the monthly payment.

The issue i see its all well and good come 3years the previous expectation that the bike can be "rolled" over with the equity in the bike providing the deposit on the new bike. However given some of the deals i saw last weekend i cannot see for the life of me how the "equity" will be there in 3years time.

eg New AT 1100 ... model around £16k, they advertise £3.5k down and £185 a month .. with an end of term payment around £8.5k .... lets say we roll to the new bike in 2023 ... i dont think that will be possible unless you accompany the purchase with yet another deposit as there is no way the deposit for the new bike will be within the current bike.

May be i am missing something but i really think there is an issue brewing here ...
 

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That's a bad deal in anyone's view and PCP finance plans are a scary endeavour; with a balloon payment explicitly designed to rope you in at the end, the majority handing over their beloved bike, only to do it all over again, forever staying in the debt game and only ever 'up-cycling' to the next big thing... and paying through the nose for the privilege.
Like cars and cakes, our bikes are a depreciating asset. Anyone would be lucky to get a return on any vehicle they've owned for a few years. The only personal equity you'd retain is the sunken cost fallacy you pile into it.
There's no financial sense in doing it unless the bike is 1) you must have it... 2) it's yours indefinitely... and 3) you see no reason to ever get rid of it.

At year 3 you'd have reached the spending apex and any payments afterwards would become progressively less and less worth your wages.

The cost of the new AT package will drop incrementally as the year goes on, especially in the run up to winter. Newer deals then will make remorseful buyers of anyone who signed up to a PCP release date package.
Generally speaking, in all things finance options have become more expensive as cash purchases become fewer.

Personally I'd rather keeping loving my 2017 model while saving for a cash or HP buy near 2021... and then thank my lucky stars I'm not married.
The Honda salesman tried his hand with me and the then upcoming and amazing 2020. I opted for the '1 previous owner' 2017 in the fleet.
Still... the heart wants what it wants. o_O
 

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Good points raised here, as when I went to trade in my old Fireblade years and years ago, the dealer asked why on earth do you want to own the bike...its going to depreciate, its going to get wear on components and get less reliable!

sometimes I wonder what a classic bike will be in years to come?

And to make things worse, I did take the pcp as it was the only way I could afford to own the bike I wanted and afford the payments...yep...balloon payment is in my future!

Arghhhhh
 

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PCP is absolutely fine as long as you understand it! What it gives you is guarantee end value of your vehicle, which you wont get buying cash. But as usual some deals are better than others and people should be careful, especially for high APRs. The catch is that the interest is paid on the whole loan, including the final value.

On the bike prices, I have been to same London motorcycle event. If you take inflation into account I do not think prices are any different compare to few years ago. Except for the new Africa Twin, which Honda decided to go up-market with. It is clearly aiming at big capacity BMW territory with the new adventure model. I guess they made their homework and know what they are doing, although it feels a bit too ambitious to me and not sure they are up to the BMW game.

On the other hand in the adventure market I personally liked the new Suzuki V-Strom 1050XT. It is still a good value and similar money as the old model, very well equipped, excellent reliability record, long warranty, reasonable running costs and good looking. Makes AT looks expensive, but I guess it is not hot enough for people to have a notice.
 

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Made more sense for me to buy my 2018 sport with a 3% bank loan over 5 years and then make fairly small overpayments each month. So by the end of the first year instead of paying 20% I had actually paid 25%... In my opinion PCP is the "never never" gone mad.
 

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For most people, motorbikes are a luxury and the whole PCP thing allows an ordinary guy (or gal) to get a bike 2 or 3 rungs up the ladder than what they'd normally get. As someone has mentioned above, they only look at what is an affordable monthly payment for them. Minimal mileage per year and I bet few every look at what their Sunday 100 mile trip for a brew actually cost them (probably about 80p a mile...so £80) I'd bet that if they didn't own a bike and were offered a two hour ride for £70 they'd turn it down. (and also moan at paying a tenner for the insurance for their courtesy bike)
It's weird what we get condition to.
The ever increasing gadgetry and 'stuff' on new bikes is bumping prices up and how much of it do we actually need? I went for the AT for two reasons, it felt way lighter and easier to manage than my 2013 GSA, and mainly, it was on £0 deposit £71 pcm for 3 yrs 0% with a 25% discount to boot. I was one of those lucky ones benefiting from the John Banks offer back in Sept 17.
Either buy new and keep for years (you know exactly how it has been treated) or buy one of the many 1-3 yr old very low mileage bikes available....and keep it years. Surely swapping every 2,3 or 4 years is a fools errand...unless you're minted ?
 

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There is always Royal Enfield... sure it doesn't have all the latest and greatest, but they are affordable. And if you follow Itchy Boots on YouTube, you can get the miles out of them like any other bike. Remember, adventure isn't what you ride - it's where you ride.
 
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