How do you pay for your car?

galway_blow_in said:
That's all best case scenario stuff, plenty of lemons out there for 10 k

Some people are time poor and don't - can't invest the time necessary to weed out the duff second hand cars on offer
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So a lot of people get new cars because they don’t have the time to research second hand ones? But how do they know what new one they want? Surely that involves a lot of research too, especially if there are complicated financial products involved
 
David1234 said:
I use a local mechanic and will line up 2-3 cars for him to have a look at in an afternoon that suits him. I don’t bother looking outside of Dublin. If you are paying €1,000 for this service you need your head checked
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Well I don't live in Dublin and have never lived in Dublin, I've always had to travel several hours to get the car I wanted second hand, asked three mechanics two years ago to look at a car, none were interested, I bought it anyway
 
David1234 said:
So a lot of people get new cars because they don’t have the time to research second hand ones? But how do they know what new one they want? Surely that involves a lot of research too, especially if there are complicated financial products involved
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Ever heard of the Internet ? , amazing what you can research in a short time from your sofa
 
galway_blow_in said:
Well I don't live in Dublin and have never lived in Dublin, I've always had to travel several hours to get the car I wanted second hand, asked three mechanics two years ago to look at a car, none were interested, I bought it anyway
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Well perhaps for your next car you could arrange to look at a number of cars in close proximity to each other and have a mechanic meet you there for an hour or two?
 
David1234 said:
Well perhaps for your next car you could arrange to look at a number of cars in close proximity to each other and have a mechanic meet you there for an hour or two?
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There lies the key difference between new and second hand, you don't get to chose where the second hands you want are

Kinda kids stuff frankly
 
David1234 said:
Same can be said for second hand cars and the dealerships they come from. The internet is a great tool finding second hand cars
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You then have to check if the used car is kosher, unlike the new one where you just decide if you want cream leather seats
 
Yes a machanic will check if it’s “koshure”

In my case I have an abundance of car garages within 10 minutes drive so I can be rather picky when choosing where I choose to purchase. I’m very much in control of the hands where the viehicle is coming from. I will also have a minimum of a 12 month warranty from a reputable garage.

I hope people enjoy choosing their overpriced cream leather seats. I’d rather pay for my bog standard ones than borrow for something I can’t afford
 
David1234 said:
Yes a machanic will check if it’s “koshure”

In my case I have an abundance of car garages within 10 minutes drive so I can be rather picky when choosing where I choose to purchase. I’m very much in control of the hands where the viehicle is coming from. I will also have a minimum of a 12 month warranty from a reputable garage.

I hope people enjoy choosing their overpriced cream leather seats. I’d rather pay for my bog standard ones than borrow for something I can’t afford
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I'm happy for you but many people don't live in such locations with more used car options than you can shake a stick at, some people want more than a vehicle with four wheels so the specific car they want second hand might be a hundred miles away
 
David1234 said:
I have also seen quite a large number of 191 cars on the roads already. Is this a new trend in Ireland? Is there stats anywhere that show the % of cars purchased in cash v those that are financed?
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There was a lot of talk a couple of years back that the increasing popularity of PCPs would distort the second hand market. In reality, sales of new cars has fallen for the last two years, by 4.4% last year on a volume that was 10.4% down on 2016. While overall sales are down, the level of financing has crept up by small margins for the last few years, but there's nothing in the numbers to suggest and significant shift in patterns.
 
Garage finance here I buy something around 2 years old every 5 years, that car goes on to be the second car than ,200 a month with a small deposit. Cheap motoring in my opinion.
 
this seems to be a thread where the OP wants to scoff at anyone buying a new car and assumes that his method of buying a reliable car for 10k for cash is the most appropriate in all circumstances.

he also says PCP is an expensive way to buy a car, it isnt, in fact there are plenty of 0% finance deals. Buying a new car is expensive, no matter how you do it, but PCP can be relatively inexpensive way of doing it.

finally, to the point that you are only renting the car, who cars, really that would be my preference, rent a depreciating asset rather than own it.
 
There are also people with reasonably predictable cashflows from things like share options; they may want a new car, and they may be able to afford it; perfectly fine.

There is no right or wrong answer.
 
The margin on brand new cars is tiny so whatever way you wrap it up there's very little by way of discount to be had regardless of what way your financing it. Being a cash buyer means nothing any more and is in fact a pain for most garages as they'll tend to get some sort of kickback on finance deals, have to count the money and lodge it etc.

If you buy a new car you'll pay fairly close to the RRP. PCP is perfect for those who understand it (and great for self employed people that do a lot of business-related driving) but it's as much a marketing gimmick for manufacturers to get people to change their cars every 2/3 years rather than every 5/6, which, is usually unnecessary for most people. If you're happy rolling over forever and throwing in a top-up deposit every now and then I don't really see the ownership issue as a major problem. It really depends on what you value.
 
24601 said:
The margin on brand new cars is tiny so whatever way you wrap it up there's very little by way of discount to be had regardless of what way your financing it. Being a cash buyer means nothing any more and is in fact a pain for most garages as they'll tend to get some sort of kickback on finance deals, have to count the money and lodge it etc.

If you buy a new car you'll pay fairly close to the RRP. PCP is perfect for those who understand it (and great for self employed people that do a lot of business-related driving) but it's as much a marketing gimmick for manufacturers to get people to change their cars every 2/3 years rather than every 5/6, which, is usually unnecessary for most people. If you're happy rolling over forever and throwing in a top-up deposit every now and then I don't really see the ownership issue as a major problem. It really depends on what you value.
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yes, the dealer margins on new premium cars here are a lot lower than most people realise
 
Pcp is a very cheap way of financing a new car and unless the purchaser decides to clock up huge miles or neglects the car, they have nothing to worry about.

A year old car is probably 20% - 30% cheaper ( depends on car brand ) but your talking close to 7% interest on a motor loan as pcp usually not available on second hands, that's before you put a cost on the unknown of a second hand vehicle, warranty is little comfort if a clown owned the car.plus with a new car, you can choose spec
 
24601 said:
The margin on brand new cars is tiny so whatever way you wrap it up there's very little by way of discount to be had regardless of what way your financing it. Being a cash buyer means nothing any more and is in fact a pain for most garages as they'll tend to get some sort of kickback on finance deals, have to count the money and lodge it etc.

If you buy a new car you'll pay fairly close to the RRP. PCP is perfect for those who understand it (and great for self employed people that do a lot of business-related driving) but it's as much a marketing gimmick for manufacturers to get people to change their cars every 2/3 years rather than every 5/6, which, is usually unnecessary for most people. If you're happy rolling over forever and throwing in a top-up deposit every now and then I don't really see the ownership issue as a major problem. It really depends on what you value.
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Don't play ball with the auto makers, buy new through pcp and keep for ten years
 
Yes, well in this scenario it makes perfect sense yo use PCP too. You finance 70% of the car at 0% or close enough to zero and can build up savings at the same time to pay the GMFV which is easier given the lower repayments under PCP. At worst you'll end up financing the final third with a bank/CU loan at 5 - 10%.

This is all well and fine if you can afford the deposit up front but the biggest problem with them is that there is a limited/no affordability assessment so you have people buying 30k cars when they might only be able to afford 15k. They can manage the payments but at the end of the 3 years they're vulnerable the risk of a lack of equity or their repayments shooting up due to an insufficient deposit being available for a new car which can be compounded by an inability to finance the GMFV with funds from a traditional lender that has to comply with prudent lending requirements etc.
 
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