Manic
Grumpy Mutt
With the new bikes being launched, I saw alot of comments on FB, about the Buyback specials BMW have on their bikes, and okes making comments about its a rental, and they want to own it.
You can see a buyback as a half empty glass, or half full glass, your choice
What some dont understand.....
Buyback is a guaranteed "Trade In Value". Your pmt plan is structured so that the settlement at the end of the term, will be the guaranteed Trade in. BMW will try predict the value of your bike 42mnths down the line. Remember, cause its a Guaranteed Trade in, your pmt per month will be way less than a normal HP. On a new 1300GS entry level its about R2000 per month less.
Lets say you took it on a 42mnth, R250k buyback deal..........
If you want to keep the bike at the end of term, you need to pay that Guaranteed Trade in amount, to make it yours. Or refinance it. Remember, your monthly pmt was not calculated on that amount, so you paid nothing off on it. You cant expect to own the bike if you never paid anything off on that R250k.
You are also not forced to give the bike back at end of term to BMW, if your Value they will give you is R250 000, and you can sell bike yourself for R290 000, you pocket the R40k, and settle bike at R250k.
You are also not locked into the full term 100%, you can sell or trade bike in after 12mnths if you want, the R250k will then become part of settlement amount. Yes, it will be higher than a normal HP deal if you try to settle after 13 months, but on 36 mnths it will be almost the same as a normal deal.
In the trucking Industry almost everyone buy trucks on Buyback agreements. Drive it for 4 years, give it back, get new one. No hassles about struggling to settle it, or price too low etc etc. That is why big companies have new trucks every 4 or 5 years.
The direction pricing is going with cars and bikes, we will soon get to a point where a normal 60mnth deal wont be possible. We actually very close to it.
Most bike deals are set/advertised on 25 000km. Yes some do more km, but you can change that km up to 60 000km. Adjusting from 25 000km to 60 000km, is R200 per month more, BUT your Guaranteed Value will be less with R15 000. Buyback deals can be done from 12 to 42mnths also. So you can ride a new bike every 12mnths.
Lastly, if you go the full term, and return bike to BMW, they do an inspection on it. If you fell that bike to pieces, they will get qoutes to fix everything, and deduct it from that last big figure. I dont think its unfair. They take normal wear and tear in consideration, but some okes will fall over here and there etc, never get it fixed, and then think they will give the bike back looking as if you competed in the Dakar, and that kite wont fly.
If you do normal 60mnth deal, ride bike for only 4 years, get settlement, get trade in price, or try sell it yourself, its much of a muchness going the "ride the bike for 4 years, park it at BMW, take new one and off you go"
If you change bikes every 3 or 4 years, this Buyback is actually the way to go.
If you ride a bike for 14 years, dont do it
You also not forced to take a new bike at end of term. You park it, leave keys and walk away. Again, I have sold many bikes and cars, where after 3 years paying installments, I sold it just for settlement, and walked away with nothing. Sometimes even had to pay a few bucks in to settle. So this is not a devil deal as everyone thinks it is.
Next question was extras. Yes you can fit extras on the bike and do as you please, just take it off at the end, and give bike back the way you got it. Also, you must keep to services at BMW. You are not allowed to service the bike at you pals house. All new BMW bikes come with a 5 year Warranty, and you cannot give a bike back after 42mnths with a warranty that lapsed. They will knock you in your pocket.
You can see a buyback as a half empty glass, or half full glass, your choice
What some dont understand.....
Buyback is a guaranteed "Trade In Value". Your pmt plan is structured so that the settlement at the end of the term, will be the guaranteed Trade in. BMW will try predict the value of your bike 42mnths down the line. Remember, cause its a Guaranteed Trade in, your pmt per month will be way less than a normal HP. On a new 1300GS entry level its about R2000 per month less.
Lets say you took it on a 42mnth, R250k buyback deal..........
If you want to keep the bike at the end of term, you need to pay that Guaranteed Trade in amount, to make it yours. Or refinance it. Remember, your monthly pmt was not calculated on that amount, so you paid nothing off on it. You cant expect to own the bike if you never paid anything off on that R250k.
You are also not forced to give the bike back at end of term to BMW, if your Value they will give you is R250 000, and you can sell bike yourself for R290 000, you pocket the R40k, and settle bike at R250k.
You are also not locked into the full term 100%, you can sell or trade bike in after 12mnths if you want, the R250k will then become part of settlement amount. Yes, it will be higher than a normal HP deal if you try to settle after 13 months, but on 36 mnths it will be almost the same as a normal deal.
In the trucking Industry almost everyone buy trucks on Buyback agreements. Drive it for 4 years, give it back, get new one. No hassles about struggling to settle it, or price too low etc etc. That is why big companies have new trucks every 4 or 5 years.
The direction pricing is going with cars and bikes, we will soon get to a point where a normal 60mnth deal wont be possible. We actually very close to it.
Most bike deals are set/advertised on 25 000km. Yes some do more km, but you can change that km up to 60 000km. Adjusting from 25 000km to 60 000km, is R200 per month more, BUT your Guaranteed Value will be less with R15 000. Buyback deals can be done from 12 to 42mnths also. So you can ride a new bike every 12mnths.
Lastly, if you go the full term, and return bike to BMW, they do an inspection on it. If you fell that bike to pieces, they will get qoutes to fix everything, and deduct it from that last big figure. I dont think its unfair. They take normal wear and tear in consideration, but some okes will fall over here and there etc, never get it fixed, and then think they will give the bike back looking as if you competed in the Dakar, and that kite wont fly.
If you do normal 60mnth deal, ride bike for only 4 years, get settlement, get trade in price, or try sell it yourself, its much of a muchness going the "ride the bike for 4 years, park it at BMW, take new one and off you go"
If you change bikes every 3 or 4 years, this Buyback is actually the way to go.
If you ride a bike for 14 years, dont do it
You also not forced to take a new bike at end of term. You park it, leave keys and walk away. Again, I have sold many bikes and cars, where after 3 years paying installments, I sold it just for settlement, and walked away with nothing. Sometimes even had to pay a few bucks in to settle. So this is not a devil deal as everyone thinks it is.
Next question was extras. Yes you can fit extras on the bike and do as you please, just take it off at the end, and give bike back the way you got it. Also, you must keep to services at BMW. You are not allowed to service the bike at you pals house. All new BMW bikes come with a 5 year Warranty, and you cannot give a bike back after 42mnths with a warranty that lapsed. They will knock you in your pocket.
