Buying New vs Used

joe123

Hey all, just wondering if I can get peoples thoughts on the whole buying new vs buying used? If you asked me a few years back which would I go for, I would have said used every time.

But now you have PCP which on paper seems fairly reasonable. Admittedly I know very little about cars but I always hear the thing of "never buy new as it looses 5 grand the minute you drive out of the garage".

For those of you more in the know about motors, what would your thoughts be?

A second question for those of you who may know, my girlfriend is thinking of buying a Renault Captur. A few reviews online have rated it around 6/7 out of 10. Are Renault generally a reliable make? Anyone any experiences of them or that specific model?

Thanks for any help.

CIP4

I think if you can easily afford the repayments and fully understand pcp and the associated balloon payment at the end of term etc then why not. Ultimately the longer you keep it the less you will lose in depreciation per year. Shop around in a few rensault dealers to get the best deal.

I have an 11 Reg Megane and while it's had a few small issues (nothing big considering age and mileage) Renault have stood by me with it despite it being out of warranty their after sales support and warranty is second to none. They are also as reliable as any of the other main brands at this stage completely different to the way they were at one stage.

grogi

joe123 wrote: »

Hey all, just wondering if I can get peoples thoughts on the whole buying new vs buying used? If you asked me a few years back which would I go for, I would have said used every time.

But now you have PCP which on paper seems fairly reasonable. Admittedly I know very little about cars but I always hear the thing of "never buy new as it looses 5 grand the minute you drive out of the garage".

For those of you more in the know about motors, what would your thoughts be?

It all depends how long you intend to keep a car. Some people get bored after year or two, some will keep the car for much longer.

Buying used was never as expensive as it is now. For a few reasons:
- short supply of newish cars. 2010-2014 were not the best years for Ireland, people decided not to buy new cars.
- GBP exchange rate - high cost of UK imports pushed the prices of Irish cars up as well

So, if you want to keep a car for longer, it makes perfect sense to buy new.

bazz26

The Renault Captur and Nissan Juke are pretty much the same car underneath the different exteriors. The Juke has been on sale for the past 6 years so it's well proven at this stage.

Regarding PCP, just make sure you understand what you will be undertaking, PCP is an affordable way to pay for a new car on the monthly but the car still has to be paid for and its designed to get you to keep taking out a new car every few years. If you decide you want out of PCP then you have to either hand it back or pay a lump sum to keep it which could be more than the market value of the car at that time.

grogi

bazz26 wrote: »

If you decide you want out of PCP then you have to either hand it back or pay a lump sum to keep it which could be more than the market value of the car at that time.

Should the lump sum be larger than market value, one just walks away.

colm_mcm

As opposed to driving away!

Drummerboy08

colm_mcm wrote: »

As opposed to driving away!

True? But you've had the use of a car for 3 years without paying for the full value of it on day one too...

GreatDefector

I've a clio and I've an option to extend payments for 2 more years, if I don't want a new car and can't afford the buyout

I have the money to repay the balloon but I'm keeping it for a house so plan on extending the 2 years. I know I can also hand the car back but I don't think I could stomach it after 3 years paying €300, it would feel like a waste.

dublinjen

You could use the difference between the market value and balloon as a deposit on a new similar scheme? unless it depreciated so much thats less than the baloon?

bazz26

Drummerboy08 wrote: »

True? But you've had the use of a car for 3 years without paying for the full value of it on day one too...

I think a fair few people incorrectly see PCP as a just a more affordable HP agreement, ie just another way of borrowing for a car rather than than only renting it. In their minds they are paying monthly for it and may think the monthly payments are towards a car they will own at the end of the PCP term making it very difficult to just hand it back with nothing to show for it. As you know PCPs are designed to keep buyers renewing at the end of every term.

I just think there maybe be a rude awakening for some people when they come to the end of their PCP term and realise they cannot afford to get out of it. Won't be the same for everyone but I'd say some people just didn't research it properly before going down the PCP road.