Feedback on 3asy Ride? - BMW NineT Forum
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post #1 of 37 Old 08-01-2014, 11:55 AM Thread Starter
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Feedback on 3asy Ride?

My whole life, I have always purchased my vehicles outright either with cash or through financing. However, I have discovered that I usually end up keeping them for only 1-2 years so the last non-mortercycle vehicle purchase I made I leased it as it made more sense and it was much easier to calculate the cost of ownership instead of trying to figure out depreciation and then delaing with selling or trading it in. I have never done this with a bike though.

Enter BMW's 3asy Ride. From a financial POV it seems that it is not a terrible deal as there is no cash needed up front and payments around $200 a month at 4.9% financing. The ballon payment is scary on paper but if you happen to have a lemon or if the bike was in an accident you have an easy way to walk away. My wife's Lexus is leased and initially we had planned on purchasing it at the end of the lease but then she had an accident and although it has been fixed, we do not want to purchase it now.

Meanwhile, you can save up for the ballon payment it you want to keep the bike or refinance if necessary. Maybe in two years you grew bored of it and want to get something else--you don't have to deal with depreciation (unless the bike is worth more than the baloon payment they you should pay it off and sell it on your own).

Has anyone had any experience with actually using 3asy Ride? Any fine print that they do not post on the web site? Has anyone had any issues returning a bike after the period is up? Any other fees?

Any feedback or first hand experience is appreciated.
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post #2 of 37 Old 08-01-2014, 12:01 PM
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Quote:
Originally Posted by maddmike View Post
My whole life, I have always purchased my vehicles outright either with cash or through financing. However, I have discovered that I usually end up keeping them for only 1-2 years so the last non-mortercycle vehicle purchase I made I leased it as it made more sense and it was much easier to calculate the cost of ownership instead of trying to figure out depreciation and then delaing with selling or trading it in. I have never done this with a bike though.

Enter BMW's 3asy Ride. From a financial POV it seems that it is not a terrible deal as there is no cash needed up front and payments around $200 a month at 4.9% financing. The ballon payment is scary on paper but if you happen to have a lemon or if the bike was in an accident you have an easy way to walk away. My wife's Lexus is leased and initially we had planned on purchasing it at the end of the lease but then she had an accident and although it has been fixed, we do not want to purchase it now.

Meanwhile, you can save up for the ballon payment it you want to keep the bike or refinance if necessary. Maybe in two years you grew bored of it and want to get something else--you don't have to deal with depreciation (unless the bike is worth more than the baloon payment they you should pay it off and sell it on your own).

Has anyone had any experience with actually using 3asy Ride? Any fine print that they do not post on the web site? Has anyone had any issues returning a bike after the period is up? Any other fees?

Any feedback or first hand experience is appreciated.
+1. I'm a new every two kinda guy and have been thinking about this for a while. The RnineT will stay in my stable permanently (easy to work on and timeless charm) but I'd like to do the 3asy Ride for an R1200RT.

- N8
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post #3 of 37 Old 08-01-2014, 02:34 PM
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Quote:
Originally Posted by maddmike View Post
My whole life, I have always purchased my vehicles outright either with cash or through financing. However, I have discovered that I usually end up keeping them for only 1-2 years so the last non-mortercycle vehicle purchase I made I leased it as it made more sense and it was much easier to calculate the cost of ownership instead of trying to figure out depreciation and then delaing with selling or trading it in. I have never done this with a bike though.

Enter BMW's 3asy Ride. From a financial POV it seems that it is not a terrible deal as there is no cash needed up front and payments around $200 a month at 4.9% financing. The ballon payment is scary on paper but if you happen to have a lemon or if the bike was in an accident you have an easy way to walk away. My wife's Lexus is leased and initially we had planned on purchasing it at the end of the lease but then she had an accident and although it has been fixed, we do not want to purchase it now.

Meanwhile, you can save up for the ballon payment it you want to keep the bike or refinance if necessary. Maybe in two years you grew bored of it and want to get something else--you don't have to deal with depreciation (unless the bike is worth more than the baloon payment they you should pay it off and sell it on your own).

Has anyone had any experience with actually using 3asy Ride? Any fine print that they do not post on the web site? Has anyone had any issues returning a bike after the period is up? Any other fees?

Any feedback or first hand experience is appreciated.
The easy ride is a loan with a balloon payment at the end. It is NOT a lease. It is not a lease because with a lease you can give the car back at the end. With the easy ride you have to pay the residual at the end. There is no giving the bike back if it's a lemon or you decided you want something else.

The amount of the balloon payment is roughly 50% of the MSRP of the bike. The bike won't be worth 50% of MSRP 48 months after you buy it so you'll be buying a bike for more than it's worth at that time. Until that time, you'll be making payments that aren't sufficient to keep the bike from being underwater. The reduced monthly payments aren't enough to cover the interest charge and the depreciation. Plus you aren't required to make payments for the first 90 days. No payments for 90 days combined with reduced monthly payments mean you will always be underwater on the bike. That makes it an even worse deal for someone that wants to swap out their bike every couple of years.

The big difference between a lease and the easy ride is that at the end of a lease you can give the car back or buy it for an agreed upon amount. With the easy ride you are required to buy the bike even if it is a lemon or it has been wrecked or it is underwater. BMW doesn't come out and say that. Instead they say you can trade it in on another BMW motorcycle. What they don't say is that you will be required to pay the excess of the loan balance over the trade-in value of the motorcycle at that time or they'll roll that deficiency into the loan on the next bike.

Don't be fooled by the 4.9% interest rate. The cost of financing is much higher than that. If you include the 4.9% interest and the amount you will be paying above market at the end of the deal for a used motorcycle, the interest rate is actually much higher than 4.9%.
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Last edited by saberr9t; 08-01-2014 at 02:42 PM.
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post #4 of 37 Old 08-01-2014, 03:15 PM
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I was briefly looking at it as well, but quickly realized for just a couple grand more on a down payment I would have the flexibility of paying off sooner or selling if I chose to. You can with good credit get about a %5 APR loan from the dealer if you stay above 10K on the loan amount. Of course 50 to 100 bucks more a month is still 50 to 100 bucks a month!

Afraid the other bikes are going to rot where they are parked....
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Time to sell the others!
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post #5 of 37 Old 08-01-2014, 03:58 PM
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Yeah I had considered the BMW "Select" Personal Contract Purchase scheme here in the UK. Seems to be more of a classic, pay a certain amount a month over an agreed timescale and a set annual mileage limit, then at the end of the period there is a guaranteed future value (GFV) which stands as long as you haven't trashed the bike. You then can simply hand back the bike and walk away if you don't want it, buy the bike by paying the GFV, or trade it in for another bike.

In the end I wasn't that much more expensive getting a loan to buy the bike, and after 4 years the R9T would be all mine, with nothing outstanding. I knew I would be keeping the BMW for at least 5 years, so it made sense for me to just get a loan. Also no penalties if I exceeded an agreed mileage limit... Finally a PCP would severely limit any mods I was wanting to do to the bike, as I'm sure BMW wouldn't be happy with loads of aftermarket kit being bolted to the bike.

If I was going to be swapping for another bike in a couple of years, the PCP idea makes a lot more sense.

If in the very unlikely event that the bike is a lemon, I'll just sell it and take any financial hit. Chances of that are very small though. For me the advantages outweigh the risk.

Today I'll be mostly riding.....

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1979 Moto Guzzi MK1 Le Mans (950 conversion, proddy race engine)
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post #6 of 37 Old 08-01-2014, 04:01 PM
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Yeah I had considered the BMW "Select" Personal Contract Purchase scheme here in the UK. Seems to be more of a classic, pay a certain amount a month over an agreed timescale and a set annual mileage limit, then at the end of the period there is a guaranteed future value (GFV) which stands as long as you haven't trashed the bike. You then can simply hand back the bike and walk away if you don't want it, buy the bike by paying the GFV, or trade it in for another bike.

In the end I wasn't that much more expensive getting a loan to buy the bike, and after 4 years the R9T would be all mine, with nothing outstanding. I knew I would be keeping the BMW for at least 5 years, so it made sense for me to just get a loan. Also no penalties if I exceeded an agreed mileage limit... Finally a PCP would severely limit any mods I was wanting to do to the bike, as I'm sure BMW wouldn't be happy with loads of aftermarket kit being bolted to the bike.

If I was going to be swapping for another bike in a couple of years, the PCP idea makes a lot more sense.

If in the very unlikely event that the bike is a lemon, I'll just sell it and take any financial hit. Chances of that are very small though. For me the advantages outweigh the risk.
Now that sounds like a lease. We don't have that in the US though.
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post #7 of 37 Old 08-01-2014, 05:46 PM
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Cash is king.
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post #8 of 37 Old 08-01-2014, 06:29 PM Thread Starter
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I hear what you are saying and I understand the concept of being upside-down applies while it doesn't apply on a lease--which kind of sucks.

However, the the total cost of owning a bike remains the same, does it not? You have the option to make the low minimum payment or pay whatever you like above it so if you can afford $500 a month you pay $500. I would think it adds a level of flexibility for someone like me who gets annual bonuses and has other cars and bikes that need to be sold--the proceeds of which would go towards the Nine T.

Cash is King but cash can be used up for other things. Leverage usually beats cash.
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post #9 of 37 Old 08-01-2014, 07:17 PM
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Cash is king.
this is probably one of the best things i've read on this forum
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post #10 of 37 Old 08-01-2014, 07:52 PM
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Originally Posted by maddmike View Post
I hear what you are saying and I understand the concept of being upside-down applies while it doesn't apply on a lease--which kind of sucks.

However, the the total cost of owning a bike remains the same, does it not? You have the option to make the low minimum payment or pay whatever you like above it so if you can afford $500 a month you pay $500. I would think it adds a level of flexibility for someone like me who gets annual bonuses and has other cars and bikes that need to be sold--the proceeds of which would go towards the Nine T.

Cash is King but cash can be used up for other things. Leverage usually beats cash.
At my age (64) if you can't write a check for it, ya have no business buying one. Same on cars. Might not be around for the length of the payment schedule!
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