Buying a brand spanking new car

Rackard

Hi,

There's already a thread on buying a used car, which I have done and am currently on my first car, a 03 Corolla.

I've never thought about getting a brand new car or how to go about it.
I know people will be saying not to buy a brand new one, waste of money etc but I am lucky that I am able to do so with finances at the minute.

Can I go to a car dealer give them say €10,000 and my used car as part of the deal? Or do they take used cars anymore?

I see they do finance at the dealer I will be going to so would I need to bring anything along with me for that?

Sorry now, just clueless enough about this area and I'm sure the dollar signs will be glowing when the dealer sees me but just want some bit of info on it all so i'm not going in completely blind.

dar83

Any brand spanking new car you can get for €10k and a 03 Corolla as trade in will be probably just as bad, if not worse than the 03 Corolla. In fact I'd be hard pressed to think of a new car you can get for €12k, if any at all...

Rackard

dar83 wrote: »

Any brand spanking new car you can get for €10k and a 03 Corolla as trade in will be probably just as bad, if not worse than the 03 Corolla. In fact I'd be hard pressed to think of a new car you can get for €12k, if any at all...

Thanks but that's where the finance part would come in to pay for the remainder €8 or €9k?

dar83

Ah ok, well if you're prepared to Finance as well then you'll be doing ok. What kind of cars are you looking at?

cannonballer

Dacia Sandero €9990

Mitsubishi Spacestar €11995

Fiat Panda

Ford Ka

Seat Mii

Skoda Citigo

Toyota Aygo

Volkswagen Up!

Bpmull

So you basically your going to trade in your car plus 10k you have and finance the rest. If that's the case there is a lot of cars within budget. The best thing to do is go around and test drive a few in different garages see which car you prefere and which garage is giving you the best deal.

Rackard

dar83 wrote: »

Ah ok, well if you're prepared to Finance as well then you'll be doing ok. What kind of cars are you looking at?

Have test drove a handful of cars and the one I really liked was the hyundai i30. Probably have my heart set on it now.

With the finance part, do I need to have anything for that from my bank or what's the story does anyone know?

Sorry now if the questions are brainless.

dbrunson

dacia duster, renault clio, dacia sandero, all within range , clio has 5 yr unlimited milage warranty, dacia hsa 3 yr warranty and an option to purchase a five yr one,

ps i dont work for renault or dacia, just think they are epic value, my sister has a duster in france and reckons its the business.

dar83

Rackard wrote: »

Have test drove a handful of cars and the one I really liked was the hyundai i30. Probably have my heart set on it now.

With the finance part, do I need to have anything for that from my bank or what's the story does anyone know?

Sorry now if the questions are brainless.

The i30 is a nice machine alright, well specced it's a very decent place to be.

The Finance part will basically be a credit chaeck and what not, they may request 6 months worth of bank statements from you and then it's mostly handled by the dealership and you'll only have to provide some further details to them and agree on a term/repayments etc... and then sign for it. If you're putting up €10k cash as well, then you'll not need to be financing the whole thing so unless you have a terrible credit rating I wouldn't expect you to have any issues there.

GavMan

You may need some payslips and something to say you're permanently employed.

It all depends on per brand finance company basis. For example VW might have different requirements to Hyundai or Opel, say.

With that much cash to put towards it, keep an eye on the likes of Renault. Every few weeks they do 0% finance weekends. Would have you a couple of grand on the deal...

OldmanMondeo

Shop around for the finance, look for the best rate (APR %). Watch for balloon payment, this is where they expect you to pay a double month at least for the final payment. They will also charge doc fees, use to be about €50, try and get these dismissed.

As for the i30, they are a nice looking car IMO. Good warranty, seem to be well put together. Are Hyundai not doing some cheap finance at the minute?

Would you consider a demo model? Basically a brand new car for a few grand cheaper.

fergiesfolly

Rackard, you might consider selling your Corolla privately and getting a personal loan from your own bank.
The benefits of this are threefold.
1) You might (probably will) get more for your old car than a dealer if you sell it privately.
This will take a little more time and trouble than letting a dealer take it as part exchange, but you'll get a better deal. Have a look on DONEDEAL to get an idea of its value and if you can, get someone with a bit more experience in buying and selling to help out.

2) You will probably get a better interest rate from your own bank than from the finance company at the car dealership.
As someone said above, there are 0% finance deals available from some manafacturers, but theres a reason for that ( as an example, Renault have 0% deals sometimes, but they're notoriously poorly built cars).

3) If you walk into a dealership as a cash buyer, you are in a much stronger position to strike a good deal. You'll get a discount that a person trading in their old car will never get.


If you do take this route you'll have plenty of time to sell our car privately while applying and waiting for loan approval and you WILL get a considerably BETTER deal than trading in and taking a manafacturers finance deal.

Also..... Take a step back and take a DEEEEP breath. You sound a little like you're buying with all your heart and none of your head.
Its understandable. We're all prone to this.
Its like seeing someone you fancy across a bar. No matter how many bad things you hear about them, you can't help but be tempted to walk over and take a test drive
Take your time to look at all the different cars in the segment your looking in.
Golf, Focus, Astra, i30, C4, Auris and many more!!
Take another few test drives (pardon the pun above) have look at online reviews( honestjohn.co.uk is a good one) and get some previoss buyers opinions, if its available.

Good luck, happy shopping and enjoy your new motor.

p.s Sometime after buying, be it an hour or a month, you'll experience buyers remorse.. " I've spent 20+ grand on a car....A CAR!!!!"
Ignore this. Go out to your drive, take a nice long look at your lovely new motor and this feeling will quickly fade

it's not just the cost of new cars it's the cost to fuel + maintenance and depending on your mileage your car can depreciate quickly after 4 years maybe you loose almost 10 grand ?

Fuel alone can add 300 a month to the total bill depending on the miles you do.

Personally I wouldn't buy a new car here with all the duties and then the VRT added on, no bloody way and to make it worse extra kit is excluded from Irish cars to make them appear more affordable.

Cost for 1.6 Diesel deluxe 22,995 ex works, so does anyone know the real drive away price ? I presume you're not going for the basic spec ?

It will cost you a lot more including depreciation and interest on the balance. That 24 or 25 K drive out the door price soon ends up costing 35 grand inc depreciation and interest.

But if you thought it all through and want a new car then go for it.

huggs2

Rackard wrote: »

Have test drove a handful of cars and the one I really liked was the hyundai i30. Probably have my heart set on it now.

With the finance part, do I need to have anything for that from my bank or what's the story does anyone know?

Sorry now if the questions are brainless.

Drove the i30 diesel recently as a hire car for a week. Loved that car.My own is a
04 focus.Good luck with what ever car you decide on.;)

DylanII

Mad_Lad wrote: »

it's not just the cost of new cars it's the cost to fuel + maintenance and depending on your mileage your car can depreciate quickly after 4 years maybe you loose almost 10 grand ?

Fuel alone can add 300 a month to the total bill depending on the miles you do.

Personally I wouldn't buy a new car here with all the duties and then the VRT added on, no bloody way and to make it worse extra kit is excluded from Irish cars to make them appear more affordable.

Cost for 1.6 Diesel deluxe 22,995 ex works, so does anyone know the real drive away price ? I presume you're not going for the basic spec ?

It will cost you a lot more including depreciation and interest on the balance. That 24 or 25 K drive out the door price soon ends up costing 35 grand inc depreciation and interest.

But if you thought it all through and want a new car then go for it.

I don't think you understand how depreciation works, it's not added to your total bill.

If the car costs you 25,000 and you have 10,000 depreciation. You now have a car worth 15,000.

If you sell it then the car cost you 25,000 - 15,000 = 10,000 + intrest

DylanII

DylanII wrote: »

I don't think you understand how depreciation works, it's not added to your total bill.

If the car costs you 25,000 and you have 10,000 depreciation. You now have a car worth 15,000.

If you sell it then the car cost you 25,000 - 15,000 = 10,000 + intrest

yeah I never thought about it's current sale value.

Joe Hart

I'd always encourage others to buy new cars for my own selfish reasons Forget the financial reasons, can you put a value on that new car smell?

veetwin

fergiesfolly wrote: »

Rackard, you might consider selling your Corolla privately and getting a personal loan from your own bank.
The benefits of this are threefold.
1) You might (probably will) get more for your old car than a dealer if you sell it privately.
This will take a little more time and trouble than letting a dealer take it as part exchange, but you'll get a better deal. Have a look on DONEDEAL to get an idea of its value and if you can, get someone with a bit more experience in buying and selling to help out.

2) You will probably get a better interest rate from your own bank than from the finance company at the car dealership.
As someone said above, there are 0% finance deals available from some manafacturers, but theres a reason for that ( as an example, Renault have 0% deals sometimes, but they're notoriously poorly built cars).

Both Kia and VW are offering finance rate of 3.9%. You won't get anything near that from a bank. Also dealers make commission on finance so they may prefer a finance customer than a cash buyer.

Selling your own car privately is good advice but can be a pain. You could sell it in an hour or it could take weeks. Also you will almost certainly be without a car for a period. It is the most economic way of trading up though.

wesf

if you want a car up in the years, do yourself a favour and buy one a year or 2 old, not new

I suppose if you got some money to blow, then do it, you can't take it with you to the grave.

The only thing I probably wouldn't do is to blow all my savings, It's a good idea to keep some savings to hand in case you need cash quickly.

scamalert

trade in 03 corolla for some new shape $hit box for 10k,which wont cost half after 2-3 years,and will lose straight away 2k value once driven out of the showroom :cool:
Total no brainer
If it was something sporty or luxury M series ,s class ,older but with some image and joy then it might be justified to buy cheaper one and have extra to keep it running for couple years.Now your corolla probably will be worth more after 3-4 years then any plastic box you can buy nowadays for 10k.

shinkansen

why dont you buy a decent older car with a proper spec than get a bog standard 'new' car for 10k ish

you can use the left over money for extra road tax., road trips will be more enjoyable and you will be able to pass out other vehicles and trucks without pi$$ing your pants too.

its what a wise man would do.

solas111

Your best option is to talk to the main dealer and see what options he can offer. I was changing from an old Corolla at the New Year and had intended to buy something around two years old, preferably another Toyota. However, I got a good deal on a new Hyundai i30 1.6 diesel and went for that instead. I am still very fond of Toyota but in my opinion they have become overpriced in this country and are losing market share as a result.

I am very pleased so far with the i30. Road tax €180 per year and fuel consumption (all short to medium range journeys) is presently 5.4 L/100Km which some people dismiss as being unimportant but it all adds up over several years. Hyundai dealers are out to try and overtake Toyota in the market so mentioning that you got a good offer from Toyota may help with the price.

This is the time to plan ahead to when you will be changing again and joining the Credit Union may be worth considering.

copacetic

fergiesfolly wrote: »

2) You will probably get a better interest rate from your own bank than from the finance company at the car dealership.
As someone said above, there are 0% finance deals available from some manafacturers, but theres a reason for that ( as an example, Renault have 0% deals sometimes, but they're notoriously poorly built cars).

That's totally untrue. No bank comes anywhere near even the worst finance deals to there at the moment.

Skoda had 0% finance deal last month, Audi had 1% for a couple of months and most brands have less than 6/7% available.

bazzachazza

To the poster saying get a better rate from your own bank, what planet are you living on that a bank now can beat 0.0% interest or 3.9% interest no ballon. Most banks are charging MINIMUM 10% interest now if not more.

Not a person

OP ..go for a new car... Somebody has to buy new cars or the used car market would just get pricier and pricier!

Although.. You could spend the money on all sorts of other things.

pippip

I wouldn't personally but I do see some of the benefits to why some people want a brand new car. I know a few people who see cars as just getting from A to B. they buy new cars as they don't have to worry about things breaking as they have warranty and then trade in after two years for another new one.

My brother in law hasn't bought new tyres in 10 years as he doesn't do that much mileage. Never had to worry about nct either.

Also you only really take a big hit the first time with depreciation, after that the upgrade price after two years isn't far off the same upgrade with used cars a few years older.

If its what you want op just do it, you don't hear of too many people who buy a brand new car and never do it again.

Saab Ed

Rackard wrote: »

Have test drove a handful of cars and the one I really liked was the hyundai i30. Probably have my heart set on it now.
.

A Corrola to an i30! Are you a teacher in your mid 40's and have recently noticed that you wear a lot of lilac?

fergiesfolly

I got a loan from BOI of €10000 at 4.25%(shop around, talk to the bank, rather than just go by the internet or advertised rates) very recently and they didn't make me jump through the hoops that the last car finance company I dealt with, did.
There are no penalties involved in paying off the loan early, unlike the finance company and I can buy the car I want, where I want. And on top of that CASH buyers get better deals

Saab Ed

fergiesfolly wrote: »

I got a loan from BOI of €10000 at 4.25%

Was that the APR or is it what the bank describes as a "flat rate" The flat rate stunt is very common with the aul banks and if that's what they did (I suspect it is ) then your APR is actually very high. What's your monthly repayments on the 10k and over what term, then I can tell you if you where had or not.

ncmc

There are great finance deals with the main dealers at the moment, far cheaper than borrowing from the bank or credit union. You just go in and give your details to the sales person (monthly income, time in employment etc) and they will send off the credit application. Sometimes the finance company will ask for 6 months bank statements or payslips, so no harm to have these to hand to save time.

When you are accepted and collecting the car, you will need to bring in a photo I.D. and a recent utility bill. Sign the dotted line and It's as simple as that really.

In my experience, it makes no difference to the price you are paying if you decide to pay cash or pay via finance.

Saab Ed

fergiesfolly wrote: »

. And on top of that CASH buyers get better deals

Another common misconception. The dealer just wants to get paid, by which route is irrelevant. It's all money either way.

Next, these days a dealer wants to see I nice trade in coming their way such us the shortage of good used cars. You'd probably negotiate a far higher discount as part of your trade in than you'd ever manage to get as a straight sale . So long as its a valuable part x that is.

Lastly, the dealer gets finance commission. Use this knowledge to your advantage while doing the deal and there's even more discount for you.

So to surmise: walk in with no part x and cash in your pocket then the dealer needs all his profit up front on the car he's selling you because there's no further possibility to make money on your part x or finance commission.

TonyStark

Saab Ed wrote: »

Another common misconception. The dealer just wants to get paid, by which route is irrelevant. It's all money either way.

Next, these days a dealer wants to see I nice trade in coming their way such us the shortage of good used cars. You'd probably negotiate a far higher discount as part of your trade in than you'd ever manage to get as a straight sale . So long as its a valuable part x that is.

Lastly, the dealer gets finance commission. Use this knowledge to your advantage while doing the deal and there's even more discount for you.

So to surmise: walk in with no part x and cash in your pocket then the dealer needs all his profit up front on the car he's selling you because there's no further possibility to make money on your part x or finance commission.

Actually, the salesman gets his commission when the trade in that's traded in in the sale is sold.


Take from that what you want.

Saab Ed

TonyStark wrote: »

Actually, the salesman gets his commission when the trade in that's traded in in the sale is sold.
.

And!

Sorry. That sounded very sarcastic. What I ment was what difference would that make?

galwaytt

Stay away from a personal loan from the high street banks - interest rate is way too high.

Lot's of car brands have their own bank so are cheaper.

The credit union is another route, currently charging 6.5% for car loans.

antodeco

Not to de-rail the thread any signifcant amount, but you say you are financially able to buy a new car, yet going for finance? Personally, after doing the new car route twice, you really are better off buying the same model 2 years old. What you will end up paying on finance of 8k would probably pay for your petrol for a year.

Zubeneschamali

antodeco wrote: »

Personally, after doing the new car route twice, you really are better off buying the same model 2 years old.

Jeez, Louise, we all understand: new cars cost a lot.

He's already said: He can afford it, OK?

I've bought many cars, some new and some 2nd hand. It is not the same thing. 2nd hand is cheaper and better value.

New is new.

TonyStark

Saab Ed wrote: »

And!

Sorry. That sounded very sarcastic. What I ment was what difference would that make?

What it means if you get a salesman and he has the chance to pocket the commission instantly he is probably more willing to negotiate and cut a deal rather than be lumped with a lump of scrap that he cannot sell on and ultimately will be sold to the trade.

It depends on the salesman/dealer etc.


I would suggest giving this a listen for a few tricks/tips when it comes to negotiation:

Audio: http://pd.npr.org/anon.npr-mp3/npr/me/2012/12/20121228_me_02.mp3?dl=1

Transcript: http://www.npr.org/templates/transcript/transcript.php?storyId=168197017

antodeco

Zubeneschamali wrote: »

He's already said: He can afford it, OK?
.

By taking out finance? Surely that means he can afford the repayments, not the car.

MuppetCheck

antodeco wrote: »

By taking out finance? Surely that means he can afford the repayments, not the car.

Well there's another argument to this. I am financing a portion of a new car at the moment. I have the ability to pay outright for it but would rather have the savings should I need them than stuck totally in the car.

I pay a fee for this in interest, but not a hige one given some of the rates available.

MuppetCheck

MuppetCheck wrote: »

Well there's another argument to this. I am financing a portion of a new car at the moment. I have the ability to pay outright for it but would rather have the savings should I need them than stuck totally in the car.

I pay a fee for this in interest, but not a hige one given some of the rates available.

Yeah a good thing to do.

And any savings people have should be gaining interest so should help balance out the interest on loan.

Depends on the interest you have to pay and the interest you get on savings I suppose.

MuppetCheck

Deleted User wrote: »

Yeah a good thing to do.

And any savings people have should be gaining interest so should help balance out the interest on loan.

Well not quite, but a bird in the hand and all that.

Padraig Mor

TonyStark wrote: »

What it means if you get a salesman and he has the chance to pocket the commission instantly he is probably more willing to negotiate and cut a deal rather than be lumped with a lump of scrap that he cannot sell on and ultimately will be sold to the trade.

It depends on the salesman/dealer etc.


I would suggest giving this a listen for a few tricks/tips when it comes to negotiation:

Audio: http://pd.npr.org/anon.npr-mp3/npr/me/2012/12/20121228_me_02.mp3?dl=1

Transcript: http://www.npr.org/templates/transcript/transcript.php?storyId=168197017

I think Saab Ed is highly likely to know the ins and outs of car sales commission payments!

MuppetCheck

MuppetCheck wrote: »

Well not quite, but a bird in the hand and all that.

Depends on the interest you get on the savings and the interest you have to pay.

MuppetCheck

Deleted User wrote: »

Depends on the interest you get on the savings and the interest you have to pay.

True, my interest rate is lower than the finance rate but you are talking small money over the course of the finance and should I need the savings I'm covered.

Rackard

Saab Ed wrote: »

A Corrola to an i30! Are you a teacher in your mid 40's and have recently noticed that you wear a lot of lilac?

Yes.