Ducati Sporting Club UK > General > Idle Chat > 0% on 749/999 range

[itexuk]

DUCATI 749:
£256.52 per month, 0% APR typical
On the Road cash price: £8,795;
24 monthly payments of: £256.52.
Deposit: £2,638.52;
Amount of credit: £6,156.48.
Total amount payable: £8,795.

If you invested the £6156 for 2 years @5%you would get approx £630 less tax at lets say 20% = £504 so bike would cost £8291 when you can buy one for £7999 or less. How is 0% king.
Its only king if you do not have the money

[rockhopper]

But someone is paying for the zero percent offer, either Ducati UK or the dealer.
The Ducati shops are franchises so they buy the bikes from Ducati UK at a preferential rate. The bikes you see in places like JHP are owned by JHP, bought and paid for from Ducati UK (okay, perhaps they get 30 days credit). Ducati UK may have made the dealers a special cut price offer to enable them to offer zero percent. I still don't see you being able to negotiate a better price and still get zero percent.

Anyhow, thats how it used to work when i was in retail so i may be totally wrong!

[Gizmo]

The dealer will have a dealer price, DUK as importer will have distributor margin which they are now using to pay for the 0%, that DUK margin would have been used for marketing/advertising or other promo but they must need to move bikes at a quiet time of year. More than likely DUK will be getting a good price for the deal from the finance company for the zero finance, they'll get that because of the expected volume, it'll be a way better rate than a dealer can get. You should still be able to haggle, you've probably got a trade in and the dealer/DUK won't be financing the whole bike so the dealer can tell DUK whatever he likes on the balance needed to finance the deal, obviously the dealer knows the game anyway and will play fair with DUK but will want the sale as well. DUk are paying for the deal, they must be under pressure to move more units or have got their forward order wrong and have bikes due to be shipped to them without shops or customers for them.

[Carbon749]

Did my own version of 0% and a good deal.

Negotiated a great deal for my bike and then bought it on an egg card. At the time 1% cash back for purchases and 0% interest for 10 months. Move the balance to another card for 12 months 0% etc etc

Pay a worthwhile amount each month and the balance is cleared in 3 years.

0% interest for 3 years and no deposit to pay

Originally posted by itexuk
If you invested the £6156 for 2 years @5%you would get approx £630 less tax at lets say 20% = £504 so bike would cost £8291 when you can buy one for £7999 or less. How is 0% king.
Its only king if you do not have the money

When you’ve worked in acquisition and as a QS for as long as I have, you will understand that 0% IS king on anything, it has nothing to do with not having the money?! Why would you put £8k into something as ridicules as a motorbike when you can buy it on 0%!? And as for 5% return on your investment?!??!? Me thinks you either need to sack your financial adviser, or get one.

New UK R1 bought in March 2005 from a Yamaha dealer when the RRP was £9299. Explain how I managed to get it for £8000 on 0% for 3 years with no deposit? And they said it could not be done….Dealers will get incentives for selling finance, regardless of the APR, or the length of the term. I know my car selling friends (SEAT, VW, PORSCHE) do it every single day.

[twpd]

Looking at residual values I still wouldn't do it. Instead I'd go for a mint 2 year old bike...plenty around at low prices.

[Ray]

Intresting debate........

Bit of a guessing game as to who is paying for the 0% finance, the dealer or DUK? Probably DUK on the current promotion.

IF it is then it gets paid for out of DUK's slice of the cake??

A "free" servicing deal might be a bit more painful for DUK as it will be the dealers who do the work and DUK would have to pay them to do it and pay for the parts out of any margin in the bike.

My shilling would be on 0% costing less than 2 years free servicing for whoever picks up the bill! What if some maniac buys a bike and racks up 24k miles in 2 years?? Thats four service!! Yer smallprint had better be small!!

Surely the personal reasons for going for 0% over any other deal vary depending on the individual. Each individual would have to weigh up their personal circumstances.

There are also the sellers incentive variables. It's not beyond the realms of possibilty that you will get a mega deal on a bike if the dealer/importer/whoever needs the sale to reach a target where some bonuses kick in.

0%, bike for 3 shillings and sixpence, certainly sir.....knowing that one sale is gonna guarantee a big payoff that more than outweighs the ludicrous deal you've been lucky enough to bag!!

Ray

[antonye]

Originally posted by Ray
My shilling would be on 0% costing less than 2 years free servicing for whoever picks up the bill! What if some maniac buys a bike and racks up 24k miles in 2 years?? Thats four service!! Yer smallprint had better be small!!

However, that will be the exception rather than the rule, so paying for 1 in 100 to have an extra service would not break the bank if they gauged it right.

[Gizmo]

The DUC US deal is for 2 years or 6000 miles, its quite clear in the T&C. there is a cost but if the promo is at this time of year the 6000 mile service will be done at the same point next year, ideal for the dealer as the workshop is quiet in the early months and surely its better for DucUK to keep mechanics in work rather than finance companies??. Its pointless doing a 0% deal, look at the vote on upnorth, 100% would prefer some kind of deal on service rather than cheap finance. OK, its a small sample as you need to register to vote but even so suggests Duc UK are missing out on a promotion which might actually help sell more bikes.

[itexuk]

Originally posted by RCA

When you’ve worked in acquisition and as a QS for as long as I have, you will understand that 0% IS king on anything, it has nothing to do with not having the money?! Why would you put £8k into something as ridicules as a motorbike when you can buy it on 0%!? And as for 5% return on your investment?!??!? Me thinks you either need to sack your financial adviser, or get one.

New UK R1 bought in March 2005 from a Yamaha dealer when the RRP was £9299. Explain how I managed to get it for £8000 on 0% for 3 years with no deposit? And they said it could not be done….Dealers will get incentives for selling finance, regardless of the APR, or the length of the term. I know my car selling friends (SEAT, VW, PORSCHE) do it every single day.

We were talking about the Ducati deal:

DUCATI 749:
£256.52 per month, 0% APR typical
On the Road cash price: £8,795;
24 monthly payments of: £256.52.
Deposit: £2,638.52;
Amount of credit: £6,156.48.
Total amount payable: £8,795.

I agree, IF you can negotiate a big discount off the above price and STILL get 0% than that is the way to go as you did on the R1.