New Bike

[Lonewolf]

PCP is the culprit.

PCP, has its place and it does suit a lot of people. I looked into it early last year when I went through a phase of buying two GSA's. I found it too restrictive.

[GLA55Y]

 
I agree. They sell it as the way forward, very clever marketing. What they don't highlight is the massive payment to end the contract, whatever you are buying. Then they will try and stick you for damage to the vehicle, never really explained properly at the contract start.

[O.C.]

PCP is OK if you aren't too fussed about actually owning your bike (unless you make the final payment)

I've thought about it in the past, but I guess I'm a bit olde school and have therefore always purchased my bikes

[flatfour]

I see PCP as being no more than permanent rental and, unlike when it was first launched, there is now unlikely to be any "equity" at the end of the hire period to fund a deposit toward the replacement motorcycle or car. It also has the effect of allowing prices to rise to an artificially high level, due to the difference in monthly payments being quite small.

One area where it does seem to have been useful is in allowing manufacturers to float out the models that would otherwise probably not have sold in the required volumes (remember the Renault Val Satis and Citroen C6) and turn them into used vehicles where there was a market, albeit limited for them.

Perhaps most of all it satisfies the need for "instant gratification" that some, especially those of younger years, have become accustomed to? Inevitably the greatest problem with it all lies in the future when having never owned their house, vehicles or other high - cost items, these same people face retirement in very difficult circumstances.

PCP often works well for the trade (although not always, because as many dealers say, the one to three - year used vehicle market has all but disappeared) and I am sure that it has a place in the world, but probably only for those who are wary of the pitfalls and can afford the real  cost of it.

[ChrisB]

Like many other things, PCP is a good product if sold correctly and is suitable for the customer. PPI was exactly the same, a good product for those it suited. What you cant cater for is the commission hungry sales people who will sell anything to anyone if it makes them money. Also the public rarely reads the small print in any contract, they just want to pay their money and sign the agreement without fully understanding what they are getting into or committing to. All issues are clearly covered in the PCP contract material, its just that he customer is often too lazy or stupid to read it. Saying that our local BMW dealer didn't half stitch up my mate with a PCP deal and told him that should he die, the contract dies with him and they just take the bike back without further charge. Well he died 2 years into the deal leaving a right mess for his son and I to sort out. I must add I have moved house recently and the dealer is nowhere near where I live now.