How much are your car repayments?

Zascar

The thread a while back around how much your car costs you in total was very interesting, fairly surprising how much per year it costs to run an average car with everything included. However, i was wondering how much people spend on just their monthly repayments for their cars - presuming they have a loan or finance etc. Do you extend the term as long as you can to get the cheapest repayments, or do you shorten the term and get rid of it quickly?

I used to have big loans but it totally isn't worth it. I have just paid off my long term loan for all my toys, and I now own my car and motorbike outright which is a great feeling. However I've had the car a long time and I'd love a new one - but I need to decide how much I want to spend and how much its going to cost me. I'm not going to spend much - maybe 10-15k - but over 3 years that's €300 / €480 a month. I'm amazed to see so many people on average salaries going out and buying new cars for huge money...

So I'm just wondering what kind of money do you / most people spend, for what cars?

Elessar

I'm buying a new Golf soon. Putting a few grand cash plus a trade in upfront and the rest on finance. Either a 2011 demo model with 3k miles at €325/month over 3 years or a new model order for 2012 for about €365/month plus a bit more upfront.

I can't really see too many folks contributing to this thread.

ShadowHearth

We once wanted to buy brand new Opel astra 3 door. It was 28k in total witl all extras we wanted.

Bank refused 20k loan, so we were quite upset. I took 5k instead and bought 8k clk200 with 4k left over in cash.

I am soooooooooo glad now that bank refused to give us loan of 20k!!! 230eu repayments for 2 years were not too bad, but it was really noticeable. 500eu for 4 years would make me a sad panda now!

If I want to buy a car, I take a small 2keu loan, then add my own money and make sure I have enough left over for rainy day. Works for me really well. I got only 550eu to pay out in total sine i bought skyline. Took 2k like always and added my own money after with enough money left in bank account.

Less then 90eu per month. Happy days.

Keith186

My car repayments are €0 per month.

That's one of the benefits of driving a shítbox from the last century!

i got finance for my first car
cleared in a year as i would rather hefty repayments and the debt cleared quicker, i have an allergy to debt :pac:
current car was cash + trade in
would never sign up to a car loan for 3 years, even 2 would be pushing it
if i cant afford it i wont buy it

MugMugs

RoverJames wrote: »

I can't really see too many folks contributing to this thread.

+1 to that. I pay x a month. It's grand.

vetstu

Bought for cash. No debt for me.

-Corkie-

I got a car loan once for nearly 40 grand. Its paid now but never again, its grand for the first 6 months but then its a pure PITA....

NewApproach

0.

Anyone who buys a car (depreciating asset) on credit is a monumental idiot.

Zascar

I know several people who bought new bmw's for 50k-70k in 2007/2008, cars are worth under 30k now and they are still paying them off at probably somewhere close to a grand a month...

Zascar

Zascar wrote: »

.......... I have just paid off my long term loan for all my toys, and I now own my car and motorbike outright which is a great feeling. .............

How much was the long term loan per month ?

dar83

NewApproach wrote: »

0.

Anyone who buys a car (depreciating asset) on credit is a monumental idiot.

Not if you like and appreciate nice cars it isn't. You could say the same for practically anything in life with that attitude otherwise. Why buy anything when it's only going to be worth less after you do? :rolleyes:
The only thing that used to possibly buck the trend was property... and well we know what happened to a lot of people there in the last 5 years as well. (yes it will hopefully recover, but not for a while)

Buying a 30k+ car on complete Credit may be where I agree with you, but 20k and under I think it makes more sense to buy on Credit. Unless you're an immaculate saver and feel like getting the bus for a few years while you do.

Personally I only ever get a car loan over 3 years, that's my limit. If I cant afford it over that length of time, then I dont do it. I also like to try and clear it early as well, as early as possible.

ShadowHearth

NewApproach wrote: »

0.

Anyone who buys a car (depreciating asset) on credit is a monumental idiot.

not really... if you cant properly work with your own money, then its not loans fault, but your own... :rolleyes:

NewApproach

NewApproach wrote: »

0.

Anyone who buys a car (depreciating asset) on credit is a monumental idiot.

About 50% of motorists so.

Big Nasty

Big Fat Zero! :cool:

Sofiztikated

I agree with ShadowHeath and dar83.

I can manage my money. When I was buying my car, I didn't have access to the total at the time, so I topped up a loan I had, used it to purchase my car, and consolidate some other loans into one better payment.

I've got about 5 months left, of €302 a month. While over the last 2 years, if I went to sell the car, I would get less than what remained on my loan, when I get to February, the car is paid off, and I still have an asset that is worth €xxxx.

Credit is not a bad thing, when it's managed. (Says the man who is desperate with money.)

unkel

I never took out a loan for a car. But to the people out there that do and can afford it - fair play to ya!

There would be far too many bangers if nobody took out loans

vectra

Loan out for my car . Not saying what the repayments are :P

It will be worth it come Oct. 2012 when I will be selling it

btkm8unsl0w5r4

Whats the point of this? Use a loan calculator for info, or gloat elsewhere

ninty9er

Not sure what my payment is supposed to be, but I've accelerated it to €45 a week. Think I took a 4 year loan, always do for a car, but since I took my first one in 2006 I've cleared 2.

It's a credit union loan fully backed by savings so reduced interest rate and allows the flexibility of payment breaks/temporary unemployment.

I'd never spend fill savings on a car, when they're spent they're spent, and try getting a loan if you become unemployed.

Much more flexibility in a loan than handing over all my liquid cash. That's why they charge for the privilege.

peasant

unkel wrote: »

I never took out a loan for a car. But to the people out there that do and can afford it - fair play to ya!

There would be far too many bangers if nobody took out loans

+1

It needs a good few people not afraid of getting themselves into negative equity from the word go (and buying a new car on loan is nothing else) to keep the supply of good second hand bargains steady.

So better not call them idiots

heate

I don't see the problem with car loans. I started work needed a car (30,000 odd miles a year) and bought one on credit with a 20pc down payment on a used car
I had the car paid off in 18 months by throwing expenses payments into the loan account. The repayment was enormous but I'd the income to cover it so it didn't bother me so much.
If I had bought anything else and saved in the meantime - I'd have driven huge mileage not in the same comfort and still have lost a fortune in depreciation. The value of my car has more than halved but I'm about to trade it again.
I just have a fixed amount I want to spend per annum and that's what it costs me, and in hindsight its worked out fine.
If you have the income to organise finance in a way that works best for you then do it. I have however heard of people already stretched getting way in over their heads buying new cars for silly money and financing the whole lot - wouldn't be my bag.

Mr. Presentable

Well if people didn't borrow big to buy new I couldn't buy used for cash.

Zascar

Finance is fine as long as its manageable. Most people are not going to save up 20k or so to buy a car - the relatively small cost of the finance is worth it for getting what you want now, instead of having to save for years. No way I'd spend all my money on a car. You need a balance. If I had 20k in savings - I'd invest it, and then take out a loan for a car.

I'll never have anything more than a 3 year loan again, anything more and its just costing you too much money and taking too long. Putting a chunk down and financing the rest over a couple of years is grand. I had my payments ramped up to 700 a month to get rid of the thing. I was tough but I'm so glad i did. Won't be doing it again though. Would like something new but I'd say 350 is the max I'd go. I'd trade in my car, put a few grand too it and buy a car a few years old so its lost the larger chunk of the depreciation.

VolvoMan

NewApproach wrote: »

Anyone who buys a car (depreciating asset) on credit is a monumental idiot.

What a silly thing to say.

I'd say most people do, they just don't admit it. There's very few people with 40k lying around that they are just going to blow on a car all at once.

patwicklow

Keith186 wrote: »

My car repayments are €0 per month.

That's one of the benefits of driving a shítbox from the last century!

Same here 96 model its four wheels and it goes i dont need a car up in the years to bust my ego, and its Paid for!

spank_inferno

Just about to pay installment no 1!

€386 per month

Just sorted a loan for my next car this week (which I haven't even chosen yet), low interest rate as its credit union loan against savings. It will be 121 per month. I have the same amount as the loan in cash also to put towards the car.

Cill Dara Abu

€75 per week, Credit Union loan 2 years. Not bad I suppose.

Iwannahurl

Zero.

Paid cash.

I was obviously naive going into the salesroom, because I recall being surprised when I discovered that the salesman had far less interest in selling me the car than in flogging some over-priced car finance.

When he realised I was a cash buyer he pretty much lost interest.

Then the Celtic Casino collapsed and it was not long before the same dealership went bust. That didn't surprise me.

woodoo

I normally buy the car outright. I spend less than 5K. But i'm tempted to get an 08 to avail of the cheaper road tax. I would need a loan though. I wouldn't want to be paying anymore than €30 per week. So cash lump sum + €30 per week for 3 years = roughly 9000k car.

tobsey

NewApproach wrote: »

0.

Anyone who buys a car (depreciating asset) on credit is a monumental idiot.

Anyone who spends all their savings on a depreciating asset is a monumental idiot.

Mr. Manager

Loan of just shy of 12k to buy an Audi. Paying €310 p/m but am surviving.

Only problem is, redundancies are being rolled our across my office in 2 days


Thankfully I got PPI

btkm8unsl0w5r4

Current car for cash, previous cars some loans. I had much nicer cars when I used loans. Somehow the smugness of driving a 7 years old car wears thin compared to the joy of a better car.

MugMugs

I am slightly bemused by these "if you buy a car on credit, you're an idiot"

If I am a 20 year old that needs a car to cummute to a new job and take out a loan to buy my motor, am I an idiot ? Or am I just trying to make a go of things ?

OSI

OSI wrote: »

Well, in that line of thinking, anyone who bought a house in the last 10 years is also a monumental idiot?

That's another discussion

BrianD3

tobsey wrote: »

Anyone who spends all their savings on a depreciating asset is a monumental idiot.

Who said anything about spending all their savings?

Anyway I don't understand why people say they'd rather borrow money to pay for something rather that use their savings (assuming they have savings) when interest rates on loans are generally higher than those on fixed term deposit accounts.

I am slightly bemused by these "if you buy a car on credit, you're an idiot"

If I am a 20 year old that needs a car to cummute to a new job and take out a loan to buy my motor, am I an idiot ? Or am I just trying to make a go of things ?

You're not an idiot, it perfectly reasonable to take out a loan for a car when
a) having a car is necessary for you to make money
b) you keep your borrowing to a bare minimum by buying the cheapest car that is suitable for the job.

I seem to recall some posters in this thread mentioning their earnings in previous threads and stating figures like 80 or 100k p.a. It is shocking to me that someone on that sort of money feels the need to take out a loan to buy a car.

MugMugs

BrianD3 wrote: »

I seem to recall some posters in this thread mentioning their earnings in previous threads and stating figures like 80 or 100k p.a. It is shocking to me that someone on that sort of money feels the need to take out a loan to buy a car.

If ya got it flaunt it baby !!!

Wish I had it

Cionád

Zero, since I bought the first one in 2005 for cash.

I did pay almost 300p/m for insurance that year though!

E39MSport

I opted out of that sh1te years ago after learning the hard way.

5 months repayments on an RRS these days taxes and insures my 3 cars which were all bought for cash.

Bangernomics all the way

BrianD3

BrianD3 wrote: »

............
I seem to recall some posters in this thread mentioning their earnings in previous threads and stating figures like 80 or 100k p.a. ...............

Maybe, however a single person earning 80k/annum would be taking home less than €50,000/annum, which is about €4000/month, less when they're pension contribution is taken out.

Now if you consider that this person had to work their way up to this salary and perhaps got a mortgage along the way than it's conceible that they may have savings of perhaps €20,000 / €40,000 considering that they would have spent cash on a deposit etc. After the mortgage is paid they'd have under €3000/month to play with.

Now if this person was saving for a wedding perhaps they mightn't want to spend any of their savings on a car, and as they are on €80,000/annum they may not fancy driving a sh1tbox (no offence to anyone meant, ye all know what I drive :pac:) so having a car loan of €400/€500 a month wouldn't be a burden to them and the interest penalty wouldn't be the end of the world either for them

Iwannahurl

tobsey wrote: »

Anyone who spends all their savings on a depreciating asset is a monumental idiot.

Depreciation to one degree or another is unavoidable.

So what's the solution?

For various reasons, including the need to contain running costs, I try to travel by other means whenever possible.

But though the car sits in the driveway most of the time, it is still necessary to have it for those occasions where there is no other feasible option.

Am I therefore a monumental idiot to have a car at all?

BrianD3

BrianD3 wrote: »

I seem to recall some posters in this thread mentioning their earnings in previous threads and stating figures like 80 or 100k p.a. It is shocking to me that someone on that sort of money feels the need to take out a loan to buy a car.

If you earn more you can afford a higher repayment which means you can buy a better/more special car.

_Kaiser_

Q: How much are your car repayments?

A: Too much. Wasn't when I first took it out but redundancy + unemployment + a new lower-paying job with a much longer commute tends to change things

At least I made sure it was a personal loan, not Finance, and the bank have been pretty good with adapting to my changed circumstances but it's still a fair whack every month.

tobsey

Iwannahurl wrote: »

tobsey wrote: »

Anyone who spends all their savings on a depreciating asset is a monumental idiot.

Depreciation to one degree or another is unavoidable.

So what's the solution?

For various reasons, including the need to contain running costs, I try to travel by other means whenever possible.

But though the car sits in the driveway most of the time, it is still necessary to have it for those occasions where there is no other feasible option.

Am I therefore a monumental idiot to have a car at all?

I was just trying to add a bit of balance to what the earlier post said. No I don't think you are an idiot if you paid cash for a car that you don't use very often. I'd just rather have cash in the bank that I can access if needs be. If I was to be made redundant I'd rather gave a car loan and savings to live off than be stuck trying to sell a car quickly to get cash.

Roverjames basically posted my life in a nutshell, except you could more than half all of the figures mentioned, except the repayment amount. I'm paying 360a month for the loan. I didn't want to put any of my savings towards the car as I wanted to keep them for my wedding. I looked at buying older cars with a shorter loan, or going real bangernomics and getting something dirt cheap. When all the running costs were counted it was about 1000 euro between the cheapest and most expensive per annum. I decided to buy brand new and take the hit, but be better able to budget accurately the costs. It's working alright so far.

ninty9er

BrianD3 wrote: »

Who said anything about spending all their savings?

Anyway I don't understand why people say they'd rather borrow money to pay for something rather that use their savings (assuming they have savings) when interest rates on loans are generally higher than those on fixed term deposit accounts.

You're not an idiot, it perfectly reasonable to take out a loan for a car when
a) having a car is necessary for you to make money
b) you keep your borrowing to a bare minimum by buying the cheapest car that is suitable for the job.

I seem to recall some posters in this thread mentioning their earnings in previous threads and stating figures like 80 or 100k p.a. It is shocking to me that someone on that sort of money feels the need to take out a loan to buy a car.

Put it this way

€5k savings is roughly 4 months salary for me. I'd rather have it sitting in a savings account than in the driveway in case I need it. I'm not going to be ablt to recoup the €5k if its in a car, however by using the €5k to secure a €4k loan at 6% I'm probably getting it at 4% given varying levels of inflation at any given time. If I become unemployed my lender is a local friendly face who can suspend my payments and release some of my savings to me to get by.

Now consider I spent the €4k on the car and I have €1k left, that leaves me with less than a months salary and a car to get through until Social Protection gets around to approving rent allowance and the backlog in payments.

It makes me wonder how anyone gets by to see people saying I have it I spend it on something. The obvious exception being people with no finance obligations and more than €100k in cash in the bank.

Karen Sharp Register wrote: »

If you earn more you can afford a higher repayment which means you can buy a better/more special car.

I know a guy that earns €190k and both him and his wife drive an astra, him a 09 and her a 07.

Some people just couldn't care less about what other people think, they have the right idea.

Noffles

Paid 25k for a car 3 years ago... worth next to nowt now... I always wanted a beemer but i could almost hate it now... with the tax cuts and the price of fuel it has been ruined. It is expensive to run now and as a 2 income family we have been whacked by the tax... Will finish payments next year but it's too late now, I just want a peice of junk to drive...

Shame, I really do like Beemers.

E39MSport

To be fair - you should be hating the regime and not the car

Noffles

Noffles wrote: »

Paid 25k for a car 3 years ago... worth next to nowt now..............

surely you'd get €7K to €8k for it ?

Noffles

RoverJames wrote: »

surely you'd get €7K to €8k for it ?

Never realised I'd get that much... Got the impression it would be around 5... interesting... cheers