Why are so many people buying new cars?

outlooks

It seems that the last time someone asked the same question here was about 10 years ago.

Are people buying houses+car in packs?

TherapyBoy

I think the amount of cars being sold on PCP financing counts for a lot of ongoing car sales. When the initial 3 years is up (or whatever the term is), it's often cheaper/easier/less hassle to continue the payments and roll the PCP deal onto a brand new car for another 3 years.

Technique

Also, there's a lack of second hand cars on the market as very few people bought new cars in the period 2009 to 2014. Someone looking to buy a 3 or 4 year old car can very easily end up buying new.

Blazer

I have 2 cars..one is a 07 santa fe which costs 950 to tax and 650 to insure.
my other car i use to drive to work because its far better for mpg (320d).
This costs me 750 to tax and 630 to insure.
When you add everything up that's the cost of pcp repayments for a new car easily. Of course you the balloon payment after 3 years but most people will go again for a new car which is the whole idea of pcp.

Gael23

Cheap Finance along with a lack of good quality used cars.

Atomic Pineapple

Technique wrote: »

Also, there's a lack of second hand cars on the market as very few people bought new cars in the period 2009 to 2014. Someone looking to buy a 3 or 4 year old car can very easily end up buying new.

Very much this, I'm in this exact position where my choice is extremely limited and taking finance on a new car seems more and more appealing because of the extremely limited second hand market.

flutered

take a decco at the bangernomics or luxobarge threads in motors, why spend money when you can get class for little, treat yourself to a holliday or something else on your savings

sparkynash

well why would you want to drive a car over three years old...not much point in working if you have nothing to show for it,then there is the safety part of it older cars are out of date..also pcb is great the cars not yours unless you want it at the end of the term or you can just walk away from it.you look at any courier service or an post,,,all white vans with stick on graphics that are all leased and replaced every three years or so...most new trucks are only leased now for the same reason who wants to own there own car or truck.... nobody does...its only a car and in the end it will end up in a scrap yard...there are too many old cars on the road all cars over five years old should be scrapped..

badboyblast

sparkynash wrote: »

well why would you want to drive a car over three years old...not much point in working if you have nothing to show for it,then there is the safety part of it older cars are out of date..also pcb is great the cars not yours unless you want it at the end of the term or you can just walk away from it.you look at any courier service or an post,,,all white vans with stick on graphics that are all leased and replaced every three years or so...most new trucks are only leased now for the same reason who wants to own there own car or truck.... nobody does...its only a car and in the end it will end up in a scrap yard...there are too many old cars on the road all cars over five years old should be scrapped..

I drive a car 11 years old and work my AXX off and could well afford a brand new car but why should I shell out my hard earned cash on a piece of metal : ) : )

jimmy blevins

My car is pushing on 20, I'm still alive despite it being a deathtrap,;). Much prefer to drive something with a bit of character rather than a throwaway domestic appliance.

FortySeven

sparkynash wrote: »

well why would you want to drive a car over three years old...not much point in working if you have nothing to show for it,then there is the safety part of it older cars are out of date..also pcb is great the cars not yours unless you want it at the end of the term or you can just walk away from it.you look at any courier service or an post,,,all white vans with stick on graphics that are all leased and replaced every three years or so...most new trucks are only leased now for the same reason who wants to own there own car or truck.... nobody does...its only a car and in the end it will end up in a scrap yard...there are too many old cars on the road all cars over five years old should be scrapped..

Sure, why not? Next generation won't be needing any of those resources you'd be burning through with abandon. And why? Because you're worth it?

gctest50

New cars are often safer maybe ?

audi12

work in car sales myself scrappage is a big part of it

Mister Jingles

People have more money in their pockets again these past 18 or so months I would have guessed.

bazz26

PCP has become very popular here in the last few years. When people calculate what they are spending per month on their car including loan repayments then it can make more sense to buy new given that low PCP rates on offer from the various car manufacturers.

The economy is also picking up so consumer confidence is on the increase meaning people feel more secure in their employment so more willing to spend or borrow for a new car.

.G.

I spend about 3000 a year on my car including petrol and it's 11 years old. Pcp has some way to go to be cheaper than that! I'd love a new one definitely but I've decided I'd rather spend my money on holidays and enjoying life that being constantly in debt to drive a new car.

Jakey Rolling

I don't think it's because people have much more disposable income.

Lots of cars (Audis esp) bought 10 years ago on 120% mortgages, are now becoming expensive to maintain and you never know when the next big repair bill is going to hit. A new car on low monthly payments provides good financial certainty and no unexpected bills. Most people still don't have the funds to go full hire purchase, so are being sucked into PCP finance and are putting the inevitable balloon payment on the long finger. At least I hope they all realise that they are going to have to come up with a sizeable deposit if they want to renew their PCP in 3 years time, or they'll all be calling Joe Duffy claiming they were hoodwinked.

That's pretty much the situation for myself, excepting the 120% mortgage bit.

kerry cow

Older cars are tested regularly and once the steering , brakes and lighting is good, then no worries , new cars are keeping up with the jones's , I can well afford a top spec car or 4x4 , could buy 10 of them if i wanted ,but instead decide to keep my 2003 and drive it proudly , because its free driving , I own it , love the idea and often look at other gob****es in their shiny new 161 and most borrows to there axles, to front the glam life style , what a poor investment , car repayments .I love my banger and will be keeping it for as long as possible .

jimmycrackcorm

Bambi wrote:

How about keeping it out of the limelight and locked in a room? As mad ming demonstrates, his grandstanding might grate but it's enlightening to watch.

Bambi wrote:

So you're putting the EU forward as an trustworthy source for information on this? They're doing their utmost to make sure that they are the only source of information I'll grant you that.

Jakey Rolling wrote:

At least I hope they all realise that they are going to have to come up with a sizeable deposit if they want to renew their PCP in 3 years time, or they'll all be calling Joe Duffy claiming they were hoodwinked.

I know someone who has gone through their second pcp. Their deposit was more than covered by the excess of the BBC, so they upgraded to a pcp on a different marque to a better car and now it looks again like they're going to be in a position to do the same.

They're saving money at the same time so that after another two pcps, they will have enough to pay off the balloon payment if they wanted.

bazz26

kerry cow wrote: »

Older cars are tested regularly and once the steering , brakes and lighting is good, then no worries , new cars are keeping up with the jones's , I can well afford a top spec car or 4x4 , could buy 10 of them if i wanted ,but instead decide to keep my 2003 and drive it proudly , because its free driving , I own it , love the idea and often look at other gob****es in their shiny new 161 and most borrows to there axles, to front the glam life style , what a poor investment , car repayments .I love my banger and will be keeping it for as long as possible .

Sure if the person who bought your car brand new had the same outlook you'd be walking everywhere now. Also I don't buy into the everyone who buys a brand new car is just keeping up with the Jones, it just sounds like typical Irish begrudgery.

I don't drive a brand new car myself but I certainly wouldn't begrudge anyone who goes out and buys one. Gives me a good choice in used cars when they part with it for another after a few years.

markfinn

FortySeven wrote: »

Sure, why not? Next generation won't be needing any of those resources you'd be burning through with abandon. And why? Because you're worth it?

Far, far more resources (including fuel/energy) are wasted on building and scrapping vehicles unnecessarily. Those who actually care enough about the environment to do their homework keep their vehicles running until they can no longer be maintained/repaired.

Hopeful2016

sparkynash wrote: »

well why would you want to drive a car over three years old...not much point in working if you have nothing to show for it,then there is the safety part of it older cars are out of date..also pcb is great the cars not yours unless you want it at the end of the term or you can just walk away from it.you look at any courier service or an post,,,all white vans with stick on graphics that are all leased and replaced every three years or so...most new trucks are only leased now for the same reason who wants to own there own car or truck.... nobody does...its only a car and in the end it will end up in a scrap yard...there are too many old cars on the road all cars over five years old should be scrapped..

Nothing to show for it?! Not everyone equates the lump of metal in the drive with anything more than a mode of transport. Some people think being debt free, substantial savings, a good quality of life, multiple foreign holidays a year and a comfortable existence is plenty to show for it! People who think the age of someone's car is proof of how they're "doing" in life is deluded and judging someone on that basis says more about you than them. Myself and my partner would meet the definition of a high income household and we both drive cars older than 10 years, both with valid NCTs and perfect working order and very good tyres. Neither of us have ever been in an accident or have any reason to think our cars are unsafe based on age alone. We drive these cars because we choose to. Not because we haven nothing to show for working out asses off.

And don't get me started on the ones driving new/newer cars who can't afford to put a decent set of tyres on it. They're the one who are dangerous.

alastair

gctest50 wrote: »

New cars are often safer maybe ?

Not really. The video ends with a listing of five star safety rated cars - and they're all at least 15 year old at this stage. A well maintained ten year old car with the same safety rating as a new model, is just as safe as that new model.

No problem with people opting to buy/lease new cars. But there's also a culture of running and maintaining cars well beyond the norm applied here - just look at the many pristine older cars on the road in France, Germany, the U.S., etc. Cars don't suddenly wear out after 6-8 years. There's much to be learned from Irv Gordon and his Volvo.

FortySeven

Mister Jingles wrote: »

People have more money in their pockets again these past 18 or so months I would have guessed.

I keep hearing this. Would love to know where this extra money is coming from so I could get me some of it.

I said

I can't wait for the 3 years to end lots of well maintained 3 yr old cars to chose from.
With all the warranties on these cars the secondhand market will have lots of choice.

Sam Kade

Blazer wrote: »

I have 2 cars..one is a 07 santa fe which costs 950 to tax and 650 to insure.
my other car i use to drive to work because its far better for mpg (320d).
This costs me 750 to tax and 630 to insure.
When you add everything up that's the cost of pcp repayments for a new car easily. Of course you the balloon payment after 3 years but most people will go again for a new car which is the whole idea of pcp.

But you still have to tax and insure the new car, maybe tax will be halved but you obviously own your two cars outright so how do you figure out a new car with a loan would be as cheap?

Sam Kade

kerry cow wrote: »

Older cars are tested regularly and once the steering , brakes and lighting is good, then no worries , new cars are keeping up with the jones's , I can well afford a top spec car or 4x4 , could buy 10 of them if i wanted ,but instead decide to keep my 2003 and drive it proudly , because its free driving , I own it , love the idea and often look at other gob****es in their shiny new 161 and most borrows to there axles, to front the glam life style , what a poor investment , car repayments .I love my banger and will be keeping it for as long as possible .

Any woman over 30 that is after having a baby cannot be seen in anything less than an oversized suv that she can barely drive

dudara

I said wrote: »

I can't wait for the 3 years to end lots of well maintained 3 yr old cars to chose from.
With all the warranties on these cars the secondhand market will have lots of choice.

We bought a 131 this year that had come back into the dealer from PCP. Immaculate condition, and fully looked after by the dealer. Plus sizeable depreciation on the original price.

Del2005

alastair wrote: »

No problem with people opting to buy/lease new cars. But there's also a culture of running and maintaining cars well beyond the norm applied here - just look at the many pristine older cars on the road in France, Germany, the U.S., etc. Cars don't suddenly wear out after 6-8 years. There's much to be learned from Irv Gordon and his Volvo.

I can't talk for Germany but in France and the US I've seen way more death traps than on Irish roads. Yes they do have some pristine older cars, as do we, but there are a lot of badly maintained older cars on their roads.

hytrogen

FortySeven wrote:

I keep hearing this. Would love to know where this extra money is coming from so I could get me some of it.

Someone took the horse to France maybe?

Sam Kade wrote:

Any woman over 30 that is after having a baby cannot be seen in anything less than an oversized suv that she can barely drive

Not bashing them at all, they're finely crafted pieces of wonder we'll never ever understand but they do drive our consuming economy & the minions around a lot :d

The J Stands for Jay

sparkynash wrote: »

well why would you want to drive a car over three years old...not much point in working if you have nothing to show for it,then there is the safety part of it older cars are out of date..also pcb is great the cars not yours unless you want it at the end of the term or you can just walk away from it.you look at any courier service or an post,,,all white vans with stick on graphics that are all leased and replaced every three years or so...most new trucks are only leased now for the same reason who wants to own there own car or truck.... nobody does...its only a car and in the end it will end up in a scrap yard...there are too many old cars on the road all cars over five years old should be scrapped..

Sartalics should be introduced to the site so we can tell if posts like this are serious or not.

kippy

sparkynash wrote: »

well why would you want to drive a car over three years old...not much point in working if you have nothing to show for it,then there is the safety part of it older cars are out of date..also pcb is great the cars not yours unless you want it at the end of the term or you can just walk away from it.you look at any courier service or an post,,,all white vans with stick on graphics that are all leased and replaced every three years or so...most new trucks are only leased now for the same reason who wants to own there own car or truck.... nobody does...its only a car and in the end it will end up in a scrap yard...there are too many old cars on the road all cars over five years old should be scrapped..

What an outlandish view on life.

I have my current car for close to 10 years. It's almost 17 years old now.
The only thing that MIGHT stop me keeping it longer is insurance issues.
I see no other reason to replace it otherwise unless some major maintenance issue crops up.

Fair play to anyone who wants a brand new car, more power to them. However looking down on those that chose or cannot have one is silly.

daingeanrob

to all these people buying new cars on pcp or however i have one bit of advice,

buy leather, think of us who have to drive them in 3/5 years time..

mada999

Sam Kade wrote: »

Any woman over 30 that is after having a baby cannot be seen in anything less than an oversized suv that she can barely drive

pretty difficult to drive when the ones i see have a mobile phone glued to their ear.. :pac:

lollsangel

Jakey Rolling wrote: »

I don't think it's because people have much more disposable income.

Lots of cars (Audis esp) bought 10 years ago on 120% mortgages, are now becoming expensive to maintain and you never know when the next big repair bill is going to hit. A new car on low monthly payments provides good financial certainty and no unexpected bills. Most people still don't have the funds to go full hire purchase, so are being sucked into PCP finance and are putting the inevitable balloon payment on the long finger. At least I hope they all realise that they are going to have to come up with a sizeable deposit if they want to renew their PCP in 3 years time, or they'll all be calling Joe Duffy claiming they were hoodwinked.

That's pretty much the situation for myself, excepting the 120% mortgage bit.

Didn't actually realise that you had to have a other deposit after the 3 years. I presumed it would just be return the car get another ....pcp wouldn't really be a good deal then

Blazer

Sam Kade wrote: »

But you still have to tax and insure the new car, maybe tax will be halved but you obviously own your two cars outright so how do you figure out a new car with a loan would be as cheap?

I think I worked it out that pcp repayments would be approx 5 grand a year..its about a grand more than I'm currently paying out but at least I'm not giving 1.7k to the irish goverment on car tax a year.The tax on a new mondeo is 280 which is a saving of 1.4k euros.
Ideally I'd keep both and swap my 2l bmw for a 3l petrol model which is what I have done before with a 3l diesel model (07 525d) but this time I have two cars...
I would need an estate but trying to find a 3l bmw estate is pretty hard.
I've had a new car before and the novelty wears off after a few weeks but I can honestly say with all of my beemers even though they were all 4-9 years old every single day I drove them I smiled...the novelty never wears off in regards to that..
But now I have a choice between continuing to pay for both my cars or pay out 20 euros extra a week for a 162 mondeo estate etc.

Sam Kade

PCP is more of a contract only certain mileage allowed, fcuk that.

savagethegoat

there's two options imo....a new car every three years or so or a depreciated banger that's disposable.

It's the cars inbetween that are troublesome and expensive.

If you go the banger route, and you stick to the same model, there's always the option to keep your previous car as a source of spares.

Blazer

lollsangel wrote: »

Didn't actually realise that you had to have a other deposit after the 3 years. I presumed it would just be return the car get another ....pcp wouldn't really be a good deal then

its a balancing act..your initial deposit and with your monthly repayments should mean that your car value should be a few grand more than what you owe so this covers your deposit the next time around.

Phoebas

TherapyBoy wrote: »

I think the amount of cars being sold on PCP financing counts for a lot of ongoing car sales. When the initial 3 years is up (or whatever the term is), it's often cheaper/easier/less hassle to continue the payments and roll the PCP deal onto a brand new car for another 3 years.

Technique wrote: »

Also, there's a lack of second hand cars on the market as very few people bought new cars in the period 2009 to 2014. Someone looking to buy a 3 or 4 year old car can very easily end up buying new.

I presume this means that in 3 to 4 years time there will be a glut of good second hand cars on the market?

alastair

savagethegoat wrote: »

there's two options imo....a new car every three years or so or a depreciated banger that's disposable.

It's the cars inbetween that are troublesome and expensive.

If you go the banger route, and you stick to the same model, there's always the option to keep your previous car as a source of spares.

The in-between route need not be expensive tbh.
I'm, for the want of a better term, a bangernomics driver. I've a great condition, well maintained, and safe car that's very affordable to run (and maintain - no major outlays beyond upgrading the suspension a few years back), but which holds little residual value at this stage. As above, it's really only the recent insurance changes on 15 year old cars that would prompt me to change the car. If I was looking for a replacement, I'd probably opt for something 2011 vintage from the UK, with high spec kit, and expect to get a good few years use out of it. Five years will have knocked a lot of residual value off, and, with a bit of care, you'll find a car that's as good as new. I've been eyeing up MINI Cooper Clubman SD's, if my insurance quotes turn silly on my daily driver's 15th birthday.

gctest50

daingeanrob wrote: »

to all these people buying new cars on pcp or however i have one bit of advice,

buy leather, think of us who have to drive them in 3/5 years time..

They'll be going back to the special recycling centre after 5 years, bit like this :

Shint0

It's to save on tax OBVIOUSLY

kerry cow

New car are a fad , a false economy developed to sell cars and make people feel and look the part , look what I have achieved , look at me . Bull**** , yes there are many cases where a new car is required , but there are alot more where the older car is perfect ,
At the end of the day cars can last alot longer now days , good steering good brakes and lighting ,are they not tested road worthy by a approved agency . Why do we have to have insurance issues insuring a car when it is tested ok and then on the other hand vintage cars dont have to be tested and easy insure , it all adds up to keep changing and buying cars to pay dues to the government , all a big set up by some bright spark in a office .

Phoebas

kerry cow wrote: »

New car are a fad , a false economy developed to sell cars and make people feel and look the part , look what I have achieved , look at me . Bull**** , yes there are many cases where a new car is required , but there are alot more where the older car is perfect ,
At the end of the day cars can last alot longer now days , good steering good brakes and lighting ,are they not tested road worthy by a approved agency . Why do we have to have insurance issues insuring a car when it is tested ok and then on the other hand vintage cars dont have to be tested and easy insure , it all adds up to keep changing and buying cars to pay dues to the government , all a big set up by some bright spark in a office .

I stopped reading there.
OK, fair enough, that was the end of the post.

But still.

Voodoomelon

I was never a fan of the whole new car thing, but then sat down one evening and did the maths, most recently on a BMW 330e if some recall. Payments worked out pretty much the same as what I spent on my '05 740Li in running costs and I was 80% there on pulling the trigger on one, until I saw a few of that generation 3 series on the road and sat in a few at the dealer and I thought "that just isn't for me".

The problem is, I can't afford a really nice new car with the spec I want. I don't want an Avensis or a Golf, Passat or Tuscon, even in any of their fancier iterations. So i'm somewhat stuck in limbo in being able to afford a nice enough car, but not wanting to buy what everyone else has.

Which leaves all the lovely coupes, big saloons and maybe something a little exotic, all of which are exceptionally thin on the ground now because nobody bought any over the last 5 years, and what was left, has been exported.

It's really attractive to have a warranted, super reliable, brand new vehicle; i'd say it makes a lot of sense for most people who are in the market with a decent budget. But I'd know i'd be bored in a fortnight though unless it was a really special car and having PCP payments or lease payments hanging over me would a royal pain.

To say buying new is foolish one way or another is ridiculous.

ianobrien

I bought mine new in 14 for a number of reasons.

• The old car ('05) was uneconomic to repair. It needed a clutch, the gearchange was getting slightly notchy and it developed a thirst for oil.
• Complete lack of full proper service history to o/e spec. People here generally don't maintain cars. People here generally service a car once a year (if lucky) and 99% of people don't understand the differences in oil. Most modern diesels need low ash oil, and for most people, all oil is the same.
• I've a theory (that I can't prove, hence it's a theory) that for a car to last, it needs to be looked after properly in it's early life. As I'm planning on keeping any car until it's uneconomic to repair, I need it to last. For this, see above.
• Quite a few people I know who buy new and are planning on changing it after 3 or 4 years generally don't give a fig about maintenance as they're getting rid of it.

tl/dr - People generally don't maintain cars here to o/e levels. Why should I buy something that somebody abused.......

Guy:Incognito

badboyblast wrote: »

I drive a car 11 years old and work my AXX off and could well afford a brand new car but why should I shell out my hard earned cash on a piece of metal : ) : )

Why buy anythig so?

Guy:Incognito

When buying clothes, do you go get trousers in the charity shop that shomeone has worn for 10 years , dropping food on them, sitting on dirt, farting in them. Or do you buy yourself a nice new clean pair?


If the cars I like are available new and I could afford them, thats where I would spend my money.

But I suppose i could make proper use of my money and spend 5 grand on a 2 week holiday or get locked a couple of nights a week..........:rolleyes:

ianobrien

Guy:Incognito wrote: »

But I suppose i could make proper use of my money and spend 5 grand on a 2 week holiday or get locked a couple of nights a week..........:rolleyes:

Oh that's where people spend so much money they don't know about. Take the typical Friday night. Meal out and a few drinks is easy over €100. Even a takeaway for two and a few tinnies would be up to €40 to €50. People are easily spending a few grand a year on hangovers/headaches. Personally I'd rather not spend a few grand a year on a headache and put it to towards a car.

alastair

Guy:Incognito wrote: »

When buying clothes, do you go get trousers in the charity shop that shomeone has worn for 10 years , dropping food on them, sitting on dirt, farting in them. Or do you buy yourself a nice new clean pair?


If the cars I like are available new and I could afford them, thats where I would spend my money.

But I suppose i could make proper use of my money and spend 5 grand on a 2 week holiday or get locked a couple of nights a week..........:rolleyes:

It's probably worth pointing out that the charity shop clothes are clean too. There's no obligation on you to buy a dirty pair of trousers, nor a dirty secondhand car. Buy a clean car and then get it detailed if you're worried about the cleanliness, though it'll need cleaning regularly, regardless of whether it's new, or new to you.

Disclosure - have bought both secondhand and new clothes. They've all been clean. Also opted to buy a used (Victorian) gaff, over a brand spanking new one. All kinds of preferences out there.