Best value long term purchase, first time car

[Rationaleyes]

Hi All. I am looking to buy my first car soon, assuming I pass the test, and am mulling over my choices for the best value I might receive for buying in the current market. I have a comprehensive breakdown of my position in a money makeover here. As it stands since then I put 10k into the mortgage last year, 5k into ETFs, and received a raise which should have me around 85-90k for the upcoming year. I have 52k in the bank at the moment in cash.

My plan had been to buy a 3-4 year old electric car (2019 40kw nissan leaf was my benchmark when I first started looking), but the value in second hand electric cars doesnt seem to be there. A 2019 40kw nissan leaf is sitting around 25-27k (there are a couple cheaper on done deal at the moment but mostly private sales with huge milage for the timeframe). In contrast a new MG4 is 28k around, with a bigger battery/range, and what seems to be all around great reviews as far as I can see. I have always had it in mind that new cars are essentially a luxury and not something I would look heavily at but it seems like a much better deal. A new 40kw leaf starts at 30k also compared to the 2019 at 25-27k.

Now my other query has to do with payment. As you can probably tell with my holding of that much cash, I am not a big spender typically. I know rationally taking down a loan for the car while I have cash on hand is not a prudent financial move, and gone are the days of any 0% offers. Best personal loan offer I could find was 4.9% on loans of 20k and above. Is there any sense in taking a loan to spread out the cost of a big purchase like this even though the cash is on hand. Even a short enough term perhaps, or do I just need to rip the plaster off and put the money down since I have it.

Lastly, is the newish to new electric car likely the best long term decision here from a financial perspective. With some rough maths I worked out a year ago or so, factoring in years of use compared to ICE cars it seemed like it made much more sense, even without assuming increasing petrol/diesel costs and taxation increases on ICE cars. I know I could always buy a much older ICE car initially but I'll be looking at an automatic for sure as my fiancée is also learning how to drive but only going for the automatic licence, and the older ICE automatics may be less available, especially for parts if needed.

Thanks!

 

[Frank]

Look at the e-Niro bigger battery than leaf and 7 year warranty.

 

[Alkers86]

You don't really explain what you're looking for help with.

Tesla have very recently significantly reduced their prices for new cars. This has devalued many second hand EVs but the market here hasn't really realised this yet. I wouldn't buy second hand for the next couple of months until the impact of this has realised. E.g. there are still a few used Teslas on DD for more than the revised price of a new one. They start around 42k IIRC, so the MG still makes sense in comparison if it suits your needs.

It has yet to be seen whether other brands will reduce their prices in turn to try and maintain their market sharae, this was an global price change by Tesla so not only relating to Ireland. This could mean prices are cheaper in the coming weeks / months.

The MG's have pretty positive feedback now, there are some user forums and Irish user experience threads online I sugget you familiarise yourself with before buying but they do appear to be good value.

A good number of people have done the maths on a new EV vs a second hand ICE vehicle and worked out for their useage case, even factoring in depreciation, that the EV has worked out the better buy for them. Some EV's have actually been appreciating rather than depreciating. You could sell a 28kWh Hyundai Ioniq for more than you bought it for after having it for two years up until recently. Problem is everything else had increased in price also.

Your acceess to charging at home / work and the price you pay for electricity significantly affects the running cost of an EV. Research this before you decide.

 

[KOW]

Hi All. I am looking to buy my first car soon, assuming I pass the test, and am mulling over my choices for the best value I might receive for buying in the current market. I have a comprehensive breakdown of my position in a money makeover here. As it stands since then I put 10k into the mortgage last year, 5k into ETFs, and received a raise which should have me around 85-90k for the upcoming year. I have 52k in the bank at the moment in cash.

My plan had been to buy a 3-4 year old electric car (2019 40kw nissan leaf was my benchmark when I first started looking), but the value in second hand electric cars doesnt seem to be there. A 2019 40kw nissan leaf is sitting around 25-27k (there are a couple cheaper on done deal at the moment but mostly private sales with huge milage for the timeframe). In contrast a new MG4 is 28k around, with a bigger battery/range, and what seems to be all around great reviews as far as I can see. I have always had it in mind that new cars are essentially a luxury and not something I would look heavily at but it seems like a much better deal. A new 40kw leaf starts at 30k also compared to the 2019 at 25-27k.

Now my other query has to do with payment. As you can probably tell with my holding of that much cash, I am not a big spender typically. I know rationally taking down a loan for the car while I have cash on hand is not a prudent financial move, and gone are the days of any 0% offers. Best personal loan offer I could find was 4.9% on loans of 20k and above. Is there any sense in taking a loan to spread out the cost of a big purchase like this even though the cash is on hand. Even a short enough term perhaps, or do I just need to rip the plaster off and put the money down since I have it.

Lastly, is the newish to new electric car likely the best long term decision here from a financial perspective. With some rough maths I worked out a year ago or so, factoring in years of use compared to ICE cars it seemed like it made much more sense, even without assuming increasing petrol/diesel costs and taxation increases on ICE cars. I know I could always buy a much older ICE car initially but I'll be looking at an automatic for sure as my fiancée is also learning how to drive but only going for the automatic licence, and the older ICE automatics may be less available, especially for parts if needed.

Thanks!

Reckon your limited regarding full plug in. Buy a semi-hybrid. Petrol-electric Better choice. Better price. Just me but still would have concern on smaller electric and battery life but thats just me. Good luck in the hunt.

 

[Alkers86]

Reckon your limited regarding full plug in. Buy a semi-hybrid. Petrol-electric Better choice. Better price. Just me but still would have concern on smaller electric and battery life but thats just me. Good luck in the hunt.

Do not do this unless your driving pattern matches the phev usage case - typically short commute with seldom longer drives. On long trips a phev is less efficient than a diesel or standard petrol car. Great if you can cover the daily commute though. Don't bother with mild hybrid, waste of time.

 

[Alkers86]

2020 Tesla Model 3s are now sub 35k second hand. Prices likely to come down a bit more in comparison to new prices.

 

[Rationaleyes]

You don't really explain what you're looking for help with.

Tesla have very recently significantly reduced their prices for new cars. This has devalued many second hand EVs but the market here hasn't really realised this yet. I wouldn't buy second hand for the next couple of months until the impact of this has realised. E.g. there are still a few used Teslas on DD for more than the revised price of a new one. They start around 42k IIRC, so the MG still makes sense in comparison if it suits your needs.

It has yet to be seen whether other brands will reduce their prices in turn to try and maintain their market sharae, this was an global price change by Tesla so not only relating to Ireland. This could mean prices are cheaper in the coming weeks / months.

The MG's have pretty positive feedback now, there are some user forums and Irish user experience threads online I sugget you familiarise yourself with before buying but they do appear to be good value.

A good number of people have done the maths on a new EV vs a second hand ICE vehicle and worked out for their useage case, even factoring in depreciation, that the EV has worked out the better buy for them. Some EV's have actually been appreciating rather than depreciating. You could sell a 28kWh Hyundai Ioniq for more than you bought it for after having it for two years up until recently. Problem is everything else had increased in price also.

Your acceess to charging at home / work and the price you pay for electricity significantly affects the running cost of an EV. Research this before you decide.

Luckily I have off road parking and will have a nice spot to set up a home charger, I'll be crunching some numbers when it comes time to the best electricity plan when I need to.

My main question (good point I didnt really ask one), will a new electric car like the MG4 be a decent value purchase right now compared to other electric car choices. I never saw a new car as a good value purchase before (and still am sure I would have better value with decently older ICE car), but I am fairly set on an electric car and feel like its going to be a good value purchase.

Thanks for your reply!