Interest free cars

mrhappy42

Hi we moved to New Zealand for 3 years and are coming back to Ireland. Looking to buy a car when we get back.

Anyone know of offers for interest free cars that come up now and again. i.e you pay a deposit and then payments over 3 year that are interest free.

Thanks.
M

Terry

Moved from AH.
This seemed like the most suitable place.
Feel free to send it back if I was wrong.

Anan1

Interest-free finance won't save you a penny, the cost is simply tacked on somewhere else.

godtabh

Anan1 wrote: »

Interest-free finance won't save you a penny, the cost is simply tacked on somewhere else.

The intial purchase price would be the same if you both it with cash or credit so how did you work that out?

Táck

there is no negotiations on the price when there is an interest free offer afaik

unkel

You have to do the sums to see if it is a good deal:

Example 1: Car costs €20,000, 0% finance over 4 years. End value of the car €6,000

Example 2: Car costs €20,000, but can be had for €18,000 cash. End value of the car after 3 years is €6,000. Take out personal bank loan for €18,500 over 3 years and pay of remainder of €6,000 after 3 years. Interest is 8%

In this example the zero interest will work out very well, even though the buyer forfeits the 10% discount a cash buy would have given him. Make the term shorter and the APR of the bank loan lower, then the zero finance works out less well. I.e. replace the 4 years with 2 years and an and value of €12,000 and change the interest to 6% and all of a sudden the cash discount works out better

leex

Similar to one manufacturer having a "Buy one this year and you can change it for free next year" offer. When I inquired you had to pay full list price.

PaulieC

Kia are doing a 0% finance deal on the c'eed

colm_mcm

the catch is you have to buy a Kia Ceed

Money Shot

unkel wrote: »

even though the buyer forfeits the 10% discount a cash buy would have given him.

Are you saying that if you buy a new car for cash from any garage, you will always get 10% if you negotiate - and does this work if you are trading in also ??
I've heard of people trying to negotiate and ending up only getting some mats,

Táck

10% off in garages? please do tell me where...

ambro25

colm_mcm wrote: »

the catch is you have to buy a Kia Ceed

LOL

Sure, getting a cash discount should be harder in IE, since there's (apparently, IMHO) so many people replacing every year for the magic 0x-county-xxxx number

Not to mention, like everywhere else (not IE-specific), dealers now make more €s on financed cars than cash transactions

Always worth a try though - you know the saying: you don't ask, you don't get...

ZV Yoda

Yip - 10% off is pretty standard - we've bought our last 3 cars from Liffey Valley car mall & always got around 10% off the asking price (note, the 10% can be subjective... e.g. they may give your more off your trade in, or lower the asking price of the new car).

We recently bought an 06 car from Merlin Motors. I found them to be generally 15% lower on forecourt price for nearly new cars than the associated main dealers... however, Merlin wouldn't negotiate on price by more than €500. Still got a better deal from them than the main dealer.

The caveat here is that Merlin's warranty is only 3 months - but, if you are buying a nearly new car, then you are probably covered by the original manufactrers warranty anyway.

BTW, I have no connection with Merlin or anybody else in the motor trade - just my experience from buying cars over the last few years.

unkel

The 10% in my post was just an example. My point was that for zero finance to be a good deal depends totally on the parameters

Spit62500

Slightly off topic but is it my imagination or are there a lot more special offers appearing around this time of year than before? I seem to remember that there were few enough incentives offered until the peak buying season had passed (say around March) and then the special offers would appear.... Most of the mainstream manufacturers seem to be offering goodies at the moment

mrhappy42

Really appreciate the commments. I had not considered the cash discount.

Did have a look at new car prices, wow they are expensive - forgot how much the goverment adds on to the base price.

I don't think I will be replacing my 3 litre over here when I go back :-(

I think with the size of the writeoff in the first year in IE I will be going with a second hand car.

M
Ps. I see that the importance of the year of the car is still important in Ireland, in NZ they only care about the milage and condition, year has a lot less influence on the price and the number plate has no indication.