New Car Purchase (help badly needed)

Turkish1

Hi,

I will confess right out that cars aren't my thing. Have very little knowledge other than changing tyre, oil etc and other essentials.

My OH is looking a buying a new Seat Ibiza. For some reason has all of a sudden got it into her head that she needs to do this asap. I heard about it first about a week ago and she is set about completing the purchase before the end of the month. Personally think it is madness but won't change her mind. So I have a couple of questions concerning the purchase.

In general what do people think of Seats and the Seat Ibiza. I have driven it while on holidays (on three seperate holidays, using same car rental co). Seemed like a nice car to drive to me.

She is a soft touch, I will be going along for the numbers side of things. I have never purchases a new car (have bought second hand) and am wondering if there is the same room for negotiations for a new purchase.
For example, if I said we will pay €5,000 up front if you knock off another €1,000 of the price.

She has been given a price including trading her car in, and she will use finance over 2 or possibly 3 years with the garage.

mailforkev

I know nothing about driving or owing an Ibiza as it wouldn't be my cup of tea (presume it's like a Polo but with poorer residuals), but I do know that a facelifted version is going on sale very shortly.

So I'd hold off for the facelift unless she is getting a particularly good deal on the price, or some special edition loaded with kit.

mad muffin

More detail is needed, what spec Ibiza? What is she trading in and what is she getting for it?

As far as ibizas go we had an 06 one for three years and it didn't give us a day of bother? It was the three cylinder 1.2

Currently have an 09 Altea XL 1.4 tsi much nicer than the Ibiza obviously.

With trade in and finance from the dealer the is normaly less room for haggling but if you don't try you won't know.

Have you checked the bank for finance? Personal loans at the moment are around 10% but there HP loans are a bit lower but I guess if your buying the car new the dealer is probably giving 4.9% or so for the Ibiza.

I guess just make sure you go over the loan agreent and make sure you understand all the fees and charges.

The banks might have a higher apr but might have less fees and charges and no balloon payments do its worth a look.

Turkish1

mad muffin wrote: »

More detail is needed, what spec Ibiza? What is she trading in and what is she getting for it?

As far as ibizas go we had an 06 one for three years and it didn't give us a day of bother? It was the three cylinder 1.2

Currently have an 09 Altea XL 1.4 tsi much nicer than the Ibiza obviously.

With trade in and finance from the dealer the is normaly less room for haggling but if you don't try you won't know.

Have you checked the bank for finance? Personal loans at the moment are around 10% but there HP loans are a bit lower but I guess if your buying the car new the dealer is probably giving 4.9% or so for the Ibiza.

I guess just make sure you go over the loan agreent and make sure you understand all the fees and charges.

The banks might have a higher apr but might have less fees and charges and no balloon payments do its worth a look.

As I said first I heard was last week until this was sprung on me this morning. Will be able to give more details later on after I go with her for the test drive (she doesn't have the details of spec etc with her currently).

Trading in an 02 Clio - I think about 70K miles on clock and in good nick. Again can confirm later about milage. Give just over €3,000 trade in value and this leave the price of the Seat at 12,500. I could/probably am wrong but I recon the garage possibly inflate the "price" of the new car and also the "trade-in" value of the old car to make it look like you are receiving more bang for your buck.


Had a quick google and trying to see about new model coming out but can't find it. Anyone know when approx this is coming out?
I will be advising her to get a loan from the bank for approx €7,500.

Turkish1

Hi,

So just back from the test drive and have got the model and spec for the car along with price etc...

It is the Seat Ibiza 5door Style (mid range of the three) ,1.2litre 3 valve, 70bhp.
Cost of circa €14,600..

Trade in of 02 D Renault Clio with 52,000 miles on the clock. Giving circa €2,100 for the trade in.

Electric Windows, Cruise Control, Cornering Front Fog Lights?, ABS, Driver and Passenger air bags etc. CD, MP3, 15" alloys. Was couple more bits and pieces Central Locking etc that I can't remember off the top of my head.

The mirrors are black currently but will throw in colour coded ones for free.

4.9% Finance, no balloon payment at the end. I asked about a penalty for paying it back early as currently saving for a house so would not want any debt and was told that while it says there may be a penalty that they never charge extra. He cant give me this in writing though. I find this hard to believe, as it would not be in the T&C is they werent going to charge for it.

New model coming out in Spring, no changes to the engine's bar some very minor tweaks to improve emmissions slightly. Front end lights and bumper will change and also grill at front. See to be minor style changes from what I can see from preview pics etc..

There was no room for negotiation on the price, so what do people think? Is this a particularly good deal or am I right in thinking she is mad to be buying it with the new model coming out in a couple of months? I imagine that it would have a significant impact on the resale value in 4 or 5 years if it is the old style.

Any input appreciated.

veetwin

So you are saving for a house...going to spend €5K of your savings and borrow a further €7.5K to have a shiny new registration plate on a car thats going to be an outdated model in a few weeks?

Back in the good old days I bought new cars (2002, 2004, 2007)...I lost my shirt on all of them. My current car was 9 months old when I bought it and represented far better value.

Fact is it is lovely to have a brand new car but they make little financial sense. Best of luck what ever you decide.

Bigus

Buy the house they'll never be cheaper than this year, she has a good car there with low miles this will still be worth nearly as much next year, tell her you'll spend the money on the Kitchen

MugMugs

Sorry OP but marketing has bitten your lady and she's infected with "must have" you need to calm her down and sit back and look at this practically with her once she's cooled off. I'm serious. Modern marketing can turn people into rabid consumers hell bent on buying the nicely photoshopped shiny car. Cool her down then talk about a new car.

Turkish1

veetwin wrote: »

So you are saving for a house...going to spend €5K of your savings and borrow a further €7.5K to have a shiny new registration plate on a car thats going to be an outdated model in a few weeks?

Back in the good old days I bought new cars (2002, 2004, 2007)...I lost my shirt on all of them. My current car was 9 months old when I bought it and represented far better value.

Fact is it is lovely to have a brand new car but they make little financial sense. Best of luck what ever you decide.

You are preaching to the converted here... Its makes absoluely no financial sense and I have been trying to talk her out of it. Hoping that I put her off the idea of buying this model to give myself some time to talk her out of it in the future.. It is ultimately her purchase though so I can only offer my opinion which when it comes to financial matters for both of us generally I win on (she wanted to buy the house over 2 years ago)

Currently looking up second hand cars for her in the €6 - €7k bracket to show her what she could get with no debt and no repayments and less money.

Unfortunately I think the wonderful shiny 2012 plate has caught her eye and it wont end up how I would like.

veetwin

In that case your only option is to keep pushing used alternatives under her nose and she might take the bait! However I would not plough a huge amount of savings into a car. It actually works in you favour when going for a mortgage that you can show a history of paying loans on time and banks love to see customers with savings pots built up. It demonstrates responsibility and restraint to the lender