Advice on Buying a New Car

Topbike77

I am looking at replacing my 07 Volvo C30 as its too expensive to run -> €710 a year in tax, 2.0 litre engine.

I went to a Hyundai garage today and got a quote of about 5,500 - 7,000 on a trade in for my Volvo, if I go for a new car they will give me closer to 7,000.
A new i20 is about €16,000 and I would have a 5 year guarantee on it, €200 a year tax and a small 1.2 litre petrol engine.

Im not sure what I should do, the guarantee is very good and it seems to be a cheap car to run. At the same time I don't have to get a new car but I would get less as a trade in and a smaller guarantee.

Im also not sure what to do in terms of financing, he was talking about pcp which I haven't done before, it just seems like a way of them getting more money off you.

Im not fixed on any certain car either, I'm just looking for a reliable, cheap car to run. Im only using it for city centre and use very little milage per year. So any recommendations would be much appreciated!

colm_mcm

Divide €710 by 12 and compare with the monthly repayments/balloon payment on the i20.

Topbike77

With pcp it works out at €186.59 per month for 3 years and then €6,238 is owed.

With hire purchase its €222 per month for 5 years.

They both include the trade in of my Volvo.

I could probably get either of those down in price slightly if I try bargain him down.

Atlantic Dawn

What kind of miles are you doing, if less than 10k a year you would be cheaper to keep what you have already.

9935452

colm_mcm wrote: »

Divide €710 by 12 and compare with the monthly repayments/balloon payment on the i20.

take 200 from the 710 first..
I find it slightly amusing how a lot of people say they cant afford the high tax on a pre 08 car or dont want to pay the higher tax and then they go off and buy a new car with repayments that are higher than the tax on the old car

Topbike77

Yes defiantly it would be under 10k close to 5k even, per year. Keeping my current car is not an option. The reliability of it is starting to deteriorate, theres an electrical problem with it, ive had to get it repaired numerous times in the last year with faults in the electrical system, and they seem to keep reappearing. Ive put over €2,400 into it since July 2013.

So I really would be looking to replace it.

Atlantic Dawn

Ronan14 wrote: »

Yes defiantly it would be under 10k close to 5k even, per year. Keeping my current car is not an option. The reliability of it is starting to deteriorate, theres an electrical problem with it, ive had to get it repaired numerous times in the last year with faults in the electrical system, and they seem to keep reappearing. Ive put over €2,400 into it since July 2013.

So I really would be looking to replace it.

Yes she defo needs to go asap, electrics can be a nightmare.

Daaryl

Did you think of having a look at a Micra, Yaris, Or Fiesta? They're both good reliable cars! Cheap on everything but not parts since there new :pac:

Topbike77

Daaryl wrote: »

Did you think of having a look at a Micra, Yaris, Or Fiesta? They're both good reliable cars! Cheap on everything but not parts since there new :pac:

I would't be too keen on a Micra or Yaris but a Fiesta would appeal to me.

Topbike77

Would I be better off going for a new or used car?

Daaryl

Ronan14 wrote: »

Would I be better off going for a new or used car?

Depends really, Some new cars are way over priced, While you could pick up a used bargain for nearly 3-4k less

Topbike77

What about a Mitsubishi Space Star. They start at €11,995 and come with an 8 year warranty. Seems like a really good deal for a new car.

Atlantic Dawn

What you should consider is a car will typically depreciate by about 50% over 3 years so you need to factor this in to your running costs. There may be an ideal age of 3 or 4 years where the car is still at a very reliable state and the bulk of depreciation has been taken by the first owner.

bazz26

Those Space Stars are terrible. Really only designed with developing countries in mind similar to the current Nissan Micra. The only plus point with them is the 8 year warranty and it would even depress me to think of owning one for half that time. Ford Fiesta would be light years ahead of it and still comes with a 5 year warranty.

Fiat Panda starts at €12k and comes with a 5 year warranty too.

Topbike77

Are Space Stars that bad? They seem like a handy car for the little milage I do.
Maybe a 2011-2012 Fiesta is what I should look out for so, as per your recommendations, and so as not to take the depreciation hit.

bazz26

The Space Star was designed as cheap transport built to a low budget. Compared to the likes of it's European rivals it's way behind. A Fiat Panda costs around the same but is packaged better.

AMKC

Have a look at the Dacia Sandera. They are not to expensive and there is a few about so the resale value in a few will be better than the Space Stars anyway. They are a good car. Should be cheap and inexpensive to run and you should be able to buy a top of the range one for the money your are spending or even a mid spec one if you are happy with that.

Topbike77

Thanks for all the help, i've been shopping around since and appreciate the input.
I have it narrowed down between two cars:

Theres a low spec 2011 Fiesta with 34,000km. With a trade in on my car it would be €6,400 or €224 for 3 years.

Theres also a top spec (sat nav etc.) 2015 Renault Clio for €10,820 or €210 for 5 years, with my car on a trade in.

The tax is €270 on both, the Clio doesn't need to be NTC'd for 5 years, it has a 5 year warranty, and 5 years AA roadside assistance. The Clio is pre-registered so I have gotten the price down because of this.

The Fiesta has a three month warranty. It's a nice looking car outside but is very plasticky and cheap looking inside. Also how can I know that this wont give me costly problems?

Im not a person that would replace their car often, I have had my current car for 7 years.

Could anyone give their opinion?

EDIT: Would anyone have a rough idea of what each may be worth after 5 years.

moleyv

If you don't change your car too often the Clio might be better considering the warranty etc.

Then again if the fiesta had issues they wouldn't be the most expensive car for parts.

Monthly payments add a big enough percentage to the cost of buying outright if you can.

From your looking around what cars have you seen and discounted?

colm_mcm

Ronan14 wrote: »

Thanks for all the help, i've been shopping around since and appreciate the input.
I have it narrowed down between two cars:

Theres a low spec 2011 Fiesta with 34,000km. With a trade in on my car it would be €6,400 or €224 for 3 years.

Theres also a top spec (sat nav etc.) 2015 Renault Clio for €10,820 or €210 for 5 years, with my car on a trade in.

The tax is €270 on both, the Clio doesn't need to be NTC'd for 5 years, it has a 5 year warranty, and 5 years AA roadside assistance. The Clio is pre-registered so I have gotten the price down because of this.

The Fiesta has a three month warranty. It's a nice looking car outside but is very plasticky and cheap looking inside. Also how can I know that this wont give me costly problems?

Im not a person that would replace their car often, I have had my current car for 7 years.

Could anyone give their opinion?

EDIT: Would anyone have a rough idea of what each may be worth after 5 years.

Fiesta would be a silly move IMO. Its 4 years old, and will be 7 years old when the finance finishes.

bodzio69

Maybe consider buying a KIA. They offer 7 years warranty and their cars are cheap to run. I have KIA Ceed from 2007. It's just over warranty but still runs great and well equipped for it's year. Radio with MP3 + USB, multifunctional steering wheel, half leather and very good engine 1.4 with nearly 120bhp. Really reliable car.

Topbike77

colm_mcm wrote: »

Fiesta would be a silly move IMO. Its 4 years old, and will be 7 years old when the finance finishes.

Above someone has stated that buying a car 3-4 years old will have taken most of the depreciation hence why I was looking at this 2011 car.

Topbike77

bodzio69 wrote: »

Maybe consider buying a KIA. They offer 7 years warranty and their cars are cheap to run. I have KIA Ceed from 2007. It's just over warranty but still runs great and well equipped for it's year. Radio with MP3 + USB, multifunctional steering wheel, half leather and very good engine 1.4 with nearly 120bhp. Really reliable car.

I do like the look of the Kia Rio it seems to be a similarly priced car to the Clio, and the 7 year warranty would attract me. I'll go to a Kia garage and get some info tomorrow or the day after.

Topbike77

Thanks for the help guys, ended up getting a 131 Fiesta. Very happy with my choice.

bazz26

Good choice, well wear with it.