Financing for Car purchase

[IrishGunner]

Looking at getting a Kia Sportage and was looking at years 2023-5. However friend got new kia with 0% finance and trade in and cash and wondering if its worth it. They said they where not getting PCP so it must be a HP? Was not interested in new car but they said works out better monthly payments for them??

Is it just a trick as below

The APR is incorporated into the sticker price so people that don't understand finance walk in and say "Hey look it's 0% finance. It must be my lucky day!!"

They have increased the sticker price of the car and dropped the APR to make it look like you're getting a good deal. You're paying the same amount ,(or more) over the 3 or 4yrs. Kia's finance department will have made sure of that.

trade in worth approx 10k and have 9k cash so was looking at getting Loan from Credit union for diff this best option and go for second hand car

Nothing decided yet just looking at logistics and numbers for how to finance purchase

 

[ClubMan]

They have increased the sticker price of the car and dropped the APR

So someone paying cash will pay one price but someone buying with "0%" finance will pay more? Are you sure? What price(s) do they have listed in the showroom or on their website? One for cash buyers and one for those buying on finance?

 

[Zenith63]

Is it just a trick as below

The trick is that you’re buying a new car when you would otherwise have bought secondhand and avoided the huge depreciation new cars experience in those first 2-3 years.

If you were going to buy new anyway then 0% finance is great.

 

[Premos]

One of the other things is the balloon payment at the end. So you pay monthly and then after a certain number of years (3 for example), you have a substantial balloon payment to make (varying according to the car...) to finally own fully the car. A lot of buyers would not have the money available so would be encouraged then to buy another new car with another PCP, using the initial car trade-in value as the down payment.

 

[IrishGunner]

So someone paying cash will pay one price but someone buying with "0%" finance will pay more? Are you sure? What price(s) do they have listed in the showroom or on their website? One for cash buyers and one for those buying on finance?

Not sure if there is one Cash price and one price for Finance just reading various forums and wondering if this is the case? Did not see what Friend was offered

The trick is that you’re buying a new car when you would otherwise have bought secondhand and avoided the huge depreciation new cars experience in those first 2-3 years.

If you were going to buy new anyway then 0% finance is great.

I am not looking at buying new and avoid the HP and PCP options. Just want a car we can afford and is reliable . Read the key post and loan option sounds best and can pay off any time and maybe get better deal

Decision is to cash in value of car now as its a Diesel 2017 or keep going till wheels fall off. Taking into account if giving any issues and repairs

 

[IrishGunner]

Found this YT video helpful when buying gives great advice on everything when buying a car

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtu.be

 

[Bronte]

Decision is to cash in value of car now as its a Diesel 2017 or keep going till wheels fall off. Taking into account if giving any issues and repairs

At a certain point a car reaches a point of it not being economical to repair.

How much is the Kia you’re looking at? How much is a new one? How much did your friend pay? You’re missing key figures from your post, it’s impossible to advise you.

Clearly 0% finance is a no brainer unless you’re paying 10k more for the car than you would if paying in cash.

 

[IrishGunner]

At a certain point a car reaches a point of it not being economical to repair.

How much is the Kia you’re looking at? How much is a new one? How much did your friend pay? You’re missing key figures from your post, it’s impossible to advise you.

Clearly 0% finance is a no brainer unless you’re paying 10k more for the car than you would if paying in cash.

Just looking and these are quotes I got attached need to look at them more and this was only garage we have gone to for the moment

 

[Bronte]

There is a heck of a difference between paying 51k and 38K! One of those prices is more than the cost of our first home, which is why we didn’t have a car!

What do you need the car for ?

Your man heart is I suspect the issue here.

The HP over 48 months at 0% means a doable 616 monthly ? And you own the car outright in 4 years with trade in 9k and deposit of 11k. When it’s zero percent it makes sense to string it out as you keep more of your own money elsewhere…

Can you explain the pcp? You trade in for 9, deposit 11, pay 21 k over 3 years and then what? You’ve paid then 40k and ? What’s the 18k?

 

[IrishGunner]

There is a heck of a difference between paying 51k and 38K! One of those prices is more than the cost of our first home, which is why we didn’t have a car!

What do you need the car for ?

Your man heart is I suspect the issue here.

The HP over 48 months at 0% means a doable 616 monthly ? And you own the car outright in 4 years with trade in 9k and deposit of 11k. When it’s zero percent it makes sense to string it out as you keep more of your own money elsewhere…

Can you explain the pcp? You trade in for 9, deposit 11, pay 21 k over 3 years and then what? You’ve paid then 40k and ? What’s the 18k?

Agree it shocked myself the wife and the ground beneath us.... made us think more what is needed

Wife drives to work but we dont do mad milage but want a high Reliable Car & SUV for own personal reason and one with loads of space.

Value of own car not great but we have a bit of savings to put cash towards it and now looking at toyota Cross or RAV4. Rav4 prices bit more but think we both like the space for family and reliability so keeping an eye out

 

[Bronte]

for own personal reason and one with loads of space.

Golf bags? Double buggy, 3 children, those I could understand. Driving long distances with luggage very often…etc You’re looking at a big car so you’re going to pay more. Look at the Citroen C3 for 23k

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Keeping 20k in your pocket? BTW I know practically nothing about cars. Driving a rental this weekend a Nissan Duke, it’s pretty roomy, in January I had a ford puma I think it was, very nice to drive. They upgraded me to a tuson something and I refused it!

 

[Premos]

Will you have the money for the balloon payment (circa 20k) in 3 years?

 

[Greasemonkey]

Comparing the 2026 and 2023 vehicles in the attachment, for a reduction of 3 years off the manufacturers warranty on the 2023 model and whatever mileage is on the 2023 is mileage that the buyer will not get out of that car, equating to a reduction in price is of 25% approx does not seem like value to me for the 2023 model.
The concept that new cars depreciate heavily in the early years is no longer borne out in newer car prices, (it may be when looking at trade in values offered )
Manufacturers warranty is king - especially in the current market of semi-disposable vehicles

 

[Bronte]

Will you have the money for the balloon payment (circa 20k) in 3 years?

So the car costs 60k instead of 50, and he has to come up with it one lump sum. Madness. If I recall from discussions on here years ago the car company takes back the car at the end and sells you a new car but you’re never the owner, just a slave to car debt.

 

[IrishGunner]

Agree on all of the above just to much and now to look at the second hand car market

On loans just putting into ChatGPT was the best APR green car loan(petrol hybrid not fully elec) and getting Affinity Credit Union – E.V. Loan – ~3.95% APR my local CU is double that??

Can you go to other CU and not been a member and apply for loan or do you have to be from that area and trf the savings in my own CU as collateral or deposit 5% of the loan

 

[ClubMan]

Affinity Credit Union – E.V. Loan – ~3.95% APR my local CU is double that??

Credit Union Car Loan Calculator Ireland - Irish League of Credit Unions

Try our car loan calculator tool to calculate your potential loan repayments and find out if a credit union car loan is the best option for you.

www.creditunion.ie

As credit unions are independent from each other, each credit union sets its own loan interest rates at local level.

Can you go to other CU and not been a member and apply for loan or do you have to be from that area

As far as I know, CUs can only lend to members. You usually have to be in the "common bond" of a CU to be a member.

About Credit Unions - The Irish League of Credit Unions

Credit Union

www.creditunion.ie

Firstly, in order to join a credit union, you need to hold what is known as the 'common bond'. For most credit unions, the 'common bond' is the area where members live - potential members will need to live or work within a local area. This is known as a community based credit union. For other credit unions, the 'common bond' might be the occupation members work in, the employer they work for or perhaps, members are drawn from a society or association.

 

[Premos]

Decision is to cash in value of car now as its a Diesel 2017 or keep going till wheels fall off

On the initial dilemma, as much as the age of the car, an important point would be the mileage on the car and your yearly mileage.

 

[IrishGunner]

On the initial dilemma, as much as the age of the car, an important point would be the mileage on the car and your yearly mileage.

Yes this is reason why we are looking now at buying

As far as I know, CUs can only lend to members. You usually have to be in the "common bond" of a CU to be a member.

Seems to be the case

Is there website I can compare loans like switcher/bonkers could not see any here. Also likes of REvolut and Avant dont do "green loans" for petrol hybrid. However the min of the Green rate in CU is 25k but APR is half of car loan if not more so say we need only 20k but borrow 25k and pay off the 5k saved that wont reduce the payments but would reduce the time frame correct?

 

[ClubMan]

Is there website I can compare loans like switcher/bonkers could not see any here.

https://www.ccpc.ie/consumers/money-tools/

Best Loans in Ireland | Low Rate Loans | Online Loans Calculator

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www.bonkers.ie

 

[IrishGunner]

On loans been a while since took one out

So using example 20k over 5 years best rate seems to be with Avant. We have our Mortgage with them. So I can apply jointly with wife taking her income. So using comparison its about €395 a month. If we pay off more at end of year or duing the year does the monthly amount come down or can you re negoitate it say if we pay extra in Dec and following year monthly amount decrease or how would it work

The Green Car loan with CU not woking out best option and Avant,An Post and Revolut work out best