Cost of having a Motorbike?

Zukkini

Hi all,

This is my first post, so hello all .

I have a question regarding me moving from car to a motorbike to save money. I would love some advice from people on the forum, hopefully it would make me make a wise financial decision.

I am 23 years old and working as an Engineer for a very large airline company here in UK. I've been there since I graduated, that was when I was 21. So i've been for around 2 years.

In the 1st one and a half year, I accumulated a total of 33,000 miles on my brand new financed car. I have had this car since the day I joined the company because I thought it would be a good thing to drive to work (dependant on which route I take, it can be 50-120 miles round-trip). I commute from East London to just past Heathrow. Now, personally, this was the worst financial decision I could have ever made. Not only am I restricted to 30,000 miles in my 3 year contract, I am stuck on this contract and i've done that much in one year alone! It costs me £200 a month for the car, £180 a month for fuel, and £100 a month of saving for next years car insurance, including around £200 a year for car maintenance/cleaning etc... So, this year in November I am voluntarily terminating my contract (which I would've paid 50% of the contract by then). However, I would like people that have been in such a situation to provide any input? How was it like? What did you do? Would you still keep the car finance? Personally, I think car finance is the worst possible thing I could do due to my mileage. I cannot move because it is very expensive and it would become difficult to save (so living with parents at the moment - pay £300 a month to parents to help them out however).

Now, I am thinking of moving to a motorbike? My stress levels shoot through the roof with a car. I am commuting 2 hours each way a day! 4 hours i'm stuck in a shell with AC running and LBC playing in the background. Needless to say, I am commuting from one end of London to another end of London at peak time. It is horrible. So! With a motorbike, i'll be able to waive between traffic easier. It'll cost a lot less (I believe) and i'll be home quicker and be able to kick my feet up sooner.

What do you guys think? Do you think I would save money from switching from a car to a motorbike? Taking into account that I have to get my A2 Licence, motorbike (looking at BMW G650 GS), gear, insurance and accessories (handle muffs etc...), road tax. Do you think I should go ahead and do it? Please also take into account I want to save as quick as possible to get onto the property ladder also? Or should I just move out, houseshare and live on public transport? (Getting to the gym/meeting girlfriend/meeting friends-family would be a pain).

Thank you.

forgotmyname

Its unlikely that a bike will save you money over a car.

A small hatchback will probably be cheaper all around. Replace 4 tyres on a car for the cost of 2 on a bike.

Sometimes a bike just isnt convenient. I bought a scooter because i got fed up of sitting in traffic. A journey that used to take under 10 minutes could sometimes take 20 - 40 minutes.

Some bike need servicing a lot more often than a car. So may cost more there.

The issue seems to be you had a new car and its sapping away your money. Go for something a few years old and you save a fortune in depreciation. GO for something 5 years old and you should have a reliable car that will lose little value.

macman

If you wanted to save to get on the property ladder, then why did you saddle yourself with a 3 year loan on a brand new car at 21? If you sell the car at 18m old then you'll have taken the major part of the depreciation hit all on your own, and still be clearing the loan for another 18m. What is the penalty for early settlement?

im-lost

So you want to save for a house, have a car in finance, and want to splash out 7 or 8k to get a bike (presumably with it on finance) and all the other gubbins.

You should really go back and think of your plans, that type of bike won't save you money, your insurance as a new rider on a 650 in London will be 4 figures, 70mpg, probably not far higher than what you get in the car, servicing, fixing it after you drop it, and you will drop it, or have a crash....

You'd think that a graduate would have done a few simple sums before signing a lease that seems wholly inappropriate for their needs

RichardD1970

There have been a few similar threads posted in the past.

Here are links to two of them, there are more, if you use the forum search facility you should find them.

https://forums.moneysavingexpert.com/discussion/5010113

https://forums.moneysavingexpert.com/discussion/4068109

jbainbridge

Bikes are great. But having read your post ... you need to move closer to your job or get a new one closer by.

A commute of that length and through / round London must get you down. How long does it take?? Even by bike it will be tedious.

sharp910sh

You are simply better off moving closer to your job. And handing back the car. You could rent a room for £500 a month inc bills. Which saves you time and money.

arcon5

forgotmyname wrote: »

Its unlikely that a bike will save you money over a car.

A small hatchback will probably be cheaper all around. Replace 4 tyres on a car for the cost of 2 on a bike.

Sometimes a bike just isnt convenient. I bought a scooter because i got fed up of sitting in traffic. A journey that used to take under 10 minutes could sometimes take 20 - 40 minutes.

Some bike need servicing a lot more often than a car. So may cost more there.

The issue seems to be you had a new car and its sapping away your money. Go for something a few years old and you save a fortune in depreciation. GO for something 5 years old and you should have a reliable car that will lose little value.

That doesn't even make sense!

How does buying a bike turn a 10 minute commute in traffic in to 30-40 minutes?
Simply comparing the cost of tyres for a car and a bike isn't even a fair reflection of overall running costs. You can pickup dirt cheap decent bikes for a fraction of the cost you'd expect to pay for a semi decent car.
Fuel economy is significantly different also as well as insurance significantly lower - especially at ops age. Not sure of ops credentials but going from car to bike for some 21yr olds could easily save in excess of £1k for starters.

forgotmyname

I think you got my figures backwards. My 10 minute commute was by car.. But with a new shopping complex between my works and home the traffic more than quadrupled.

When they 1st opened the dual carriageway and forgot to post speed limits i could do the journey door to door in 6 minutes.
When the road officially opened and the shops opened it was faster to go the longer way around.
Queue for over half a mile, With a busy roundabout at the end which was close to a motorway junction also.
20 minutes was average but it did take 40 minutes sometimes. Only takes some idiot to be in the wrong lane and try to cut in.

Bought the sccoter and every journey took 10 minutes. Straight down the middle. No messing.

You can pick up dirt cheap cars also. I bought a Metro for £75 that was still going 8 years after i sold it.

If your not fussy about the make/model/colour you can get something relaible for £500 easy.

Insurance lower, Not sure on that my nephew just paid £600 3rd party for a 125cc learner legal bike. He was 22.

What about the drawbacks also. The OP mentions meetings and going out etc. Not everyone wants to turn upto a meeting in leathers or a soggy suit.

I can insure an 18 year old just passed their test for £1300 so expect someone older to get a cheaper quote.

Norman_Castle

In the 1st one and a half year, I accumulated a total of 33,000 miles on my brand new financed car. I have had this car since the day I joined the company because I thought it would be a good thing to drive to work (dependant on which route I take, it can be 50-120 miles round-trip). I commute from East London to just past Heathrow. Now, personally, this was the worst financial decision I could have ever made. Not only am I restricted to 30,000 miles in my 3 year contract, I am stuck on this contract and i've done that much in one year alone!

Its worrying an engineer working for an airline who is also a graduate cannot work out their projected annual mileage and compare that to what is offered before signing a contract.

Obviously universities can't teach common sense.

OnanTheBarbarian

What a helpful post that was :shhh: