Your Guide To Getting A
Great Deal
No-one in their right mind
would ever pay the advertised price on a new
or secondhand bike. The advertised price is
the one that where the seller receives the
maximum profit, it is merely a point for negotiation.
Many Brits are uncomfortable with haggling
but you have to be bold and put your foot
down.
Do Your Homework:
Scour the classifieds, internet, ask friends
and get as much opinion as possible and feel
for the market, once you have chosen the bike
for you.
The Market:
The best time to haggle is the last day or
two in the month, when salesmen targets are
near month end, they have more room for negotiation
to hit sales targets. If you are really patient
wait until winter.
Sales: Don't
be intimidated by the salesman, be confident
and take your time. Ask the question "What's
the best deal you can offer me", patients
pays dividends.
Hidden Extras:
Make sure a large discount on a new or secondhand
bike isn't offset by high interest rates or
a poor price for your existing bike. Remember,
the salesman will make more money and prefer
if you buy on finance (unless, of course,
they are offering 0% finance deals). Interest
rates will vary massively between HP, Bank
loan and credit cards, do your homework and
get the best deal. Is the bike's service history
up to date, make sure you wont be hit for
any routine maintenance costs after you ride
away.
Legal: Under
English law a dealer isn't obliged to say
if the bike that's being sold has been damaged,
unless you ask the question. A bike you buy
must be fit for its intended purpose. New
consumer law means that even if a used bike
suffers a defect it is up to the trader to
prove it wasn't faulty, regardless of any
warranties. Six months on and the onus is
on you.
Find The Right Finance Package
To those unlucky enough not
to be able to buy a bike outright, choosing
the right finance option can be tricky, make
sure you do your homework as it cost you in
the long run.
Hire Purchase (HP):
Simple and straightforward, you pay a deposit,
make the monthly payments for a set period
of time and the bike's yours at the end of
the term, until then, the bike belongs to
the finance company.
Most dealers will be tied
to a finance company to arrange the HP, which
is very simple as you can buy the bike and
arrange finance at the same time, but it could
cost you in the long run. Dealer's will always
prefer to sell a bike on 'finance' as they
receive a 'kick back' for arranging it. However,
default on payments and they may repossess
the bike, unless you have paid 1/3 of the
value, when you sell the bike, the finance
will have to be repaid. Also, the bike may
be harder to sell if it has outstanding finance.
From time-to-time dealers
will offer 0% interest rates, you cannot beat
this no matter how much shopping around you
will do, a larger deposit may be required
though. However, make sure the bike is insured
for the full amount of the HP agreement or
you could be left short if the bike's nicked.
Personal Loan:
Similar to HP, the payments are fixed for
a period of time but the loan is not secured
on the bike, so the finance company cannot
repossess it. Choose the lender carefully,
there are a lot of deals out there, all competing
for the same business, so you should be able
to get a reasonable rate. Lenders prefer do
not like borrowers that represent a high risk,
such as the young, unemployed, bad credit
history, it's not unusual to be charged 25%
APR. Make sure the deal is right for you,
don't buy a bike you will sell in 5 years
and borrow the money over a period of 10 years,
paying the money back early may also mean
you will be charged so check the small print.
Credit Card:
Like a loan, the APR can differ greatly and
you may be able to get the first 6 months
at 0% and the amount you pay back is flexible
and dependant upon you, unless you pay the
minimum payment each month but then you will
mainly be paying off the interest. Some credit
cards also offer extra protection if the goods
are faulty. However, credit card debt can
soon mount up and spiral out of control as
there is no payment structure in place. Credit
Card companies will also try to sell 'payment
protection' to you.
Payment
More and more bikers are
out-of-pocket as a result of fraudsters paying
for bikes with forged cheques, unfortunately,
from a legal point of view, it is the receiver
that suffers, not the bank. In some cases
it can take weeks for a forged cheque to be
returned, don't work on the basis that it
takes 5 working days (or less) to clear, we
have listed below the most common forms of
payment, the level of risk is dependant upon
the seller - be warned.
CHAPS: A
same day electronic bank transfer, very safe
but it costs the sender about £20, depending
on the bank or building society - recommended.
BACS: Electronic
bank payment, very safe but takes three working
days to clear, free to use and can be done
over the internet - recommended.
Cheque:
Easy to use and cheap but the receiver risks
the cheque bouncing, the banks refuse to admit
liability if a fraudulent cheque has been
used and in some cases can take weeks before
the receiver is aware that payment has been
returned - avoid.
Bankers Draft:
The bank guarantees payment, costs in the
region of £10 but how do you tell if
the draft is fraudulent - avoid.
Cash: It's
in your hand but check for forged notes, easily
stolen - recommended.
A-Z of Jargon
APR: Annual
Percentage Rate. One way of comparing the
various finance deals on offer, it includes
all the interest and charges. Don't always
take the finance a delaer offers you may get
a better rate at a Bank or Building Society.
Banker's draft:
The next best thing to cash, a bankers draft
is drawn from cleared funds, made payable
to a third party and guarenteed by the Bank.
This method of payment is much more acceptable
and secure than a personal cheque.
Book price:
Dealers may often refer to the 'Book' price
in a deal. They are referring to the CAP Green
Book, a confidential, industry-only guide
to secondhand bikes; what price to sell and
buy for.
Classifieds:
Privately advertised bikes. One of the easiest
and best places to buy and sell, cheaper than
a dealer's showroom but you buy at your own
risk.
Dealer margin:
The difference between what a dealer pays
for a bike and sells it for, somewhere in
between is your scope for a discount.
Depreciation:
Your bike's loss over a period of time. New
bikes take the biggest loss in the first year,
up to 40% of their original value, only Harley;s
and some BMWs show any resistance to the price
slide, which makes for privately-bought onw
year old bikes a good investment, providing
you pick from the right owner. Any bike you
buy new that may slump in value, which will
hit you hard if you have bought on finance
and want to sell it.
Extras:
Useful bargaining tools in a private deal,
useless at the dealer's when trading in. Dealers
like standard bikes and will only pay a fractionof
the value of your extras against another bike.
You will be better off selling them separate
and making the bike as standard as possible.
FSH: Full
Service History. Check the stamps and dates
carefully to make sure the servicing is genuine,
call the garage to check. A bike with FSH
is much more desirable than one without.
GSOH: Good
Sense of Humour. Essential when ploughing
your way through the classifieds.
HP: Hire
Purchase, finance spread over a long period
of time. The bike is only owned by you when
the final payment has been made.
Logbook:
Also known as the V5, the logbook is the official
record of the registered keeper, not necessarily
the owner of the bike. Off-road bikes don't
tend to have one but don't buy a bike without
it.
MoT: The
Ministry of Transport test is a compulsory
annual inspection on machines over three years
old. It is a basic check that cover's a bike's
roadworthiness, but shouldn't be taken as
a guarantee of good condition.
Part-exchange:
Also know as P/X or part-ex. Off-setting the
price of a new or secondhand bike from a dealer
(usually) against the value of your existing
bike.
Pre-reg:
Pre-registration. When new bikes have number
plates issued by dealers to alter sales statistics
or other reasons. For example, dealers pre-registered
thousands of Yamaha's Fazer 600 to avoid punitive
emissions laws. Expect mint zero mile bikes,
prices should be slightly lower than new.
T&T: Taxed and
Tested. The bike has some tax and
MoT left to run.
Terms and Conditions:
AKA the small print. If you have any sense
you will read the small print, otherwise you
may regret it later.
VGC: Very Good Condition
Warranty: Manufacturer warranties on new
bikes are not necessarily invalidated by using
non-franchised dealers, despite what you may
be told. Unofficial add-ons may comprise the
warranty, so check before you meddle.
Write-off: Damaged repairables are a pig
to sell on, so unless you plan to keep the
bike for a long time, or are prepared to accept
less for it when you sell, they're best avoided.
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Dismantlers
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