Contract Hire

[Gman1969]

Hi there has any one got their bike through Contract Hire? Just wondering on costs etc?

[Steve F]

Do you mean PCP ? I enquired about PCP last year re a new RT. Monthly repayment amounts are either fixed (as per website worked examples) or if you're PXing your current bike, then that will obviously impact on repayment amount. Just bear in mind that you won't actually own the bike, the finance company will. What really put me off PCP though was the fact that if I PXed my bike for a new Beemer, then after the contract period is up (e.g. in 2 years time), and you don't stay brand loyal, i.e. walk away, then you're left with absolutely nothing. Needless to say, Beemer like all other brands are extremely keen to keep you as a loyal customer, and will doubtless tempt with you low finance deals come renewal time! Bear in mind also that when interest rates eventually start going up, so will the APR rate on the finance deal.....
Just my two penneth...

[Gman1969]

no I looked at PCP but the figures do not stack up as there is a large deposit. Contract hire is typically a 3 year hire contract where you pay them 36 months of £X.XX and at the end of it you just give it back to them, essentially you are paying the depreciation costs, its what I tend to do through my company car.

[Gman1969]

No worries, £262+vat per month so does not really work out for me with benefit in kind tax etc so will fund the traditional way! lol