Purchasing a new car

dunner515

Thinking of purchasing a new car which I have never done before.

Going down the PCP route
Giving a cash deposit + my own car as a trade in
I have put on an additional €7500 worth of extras

The dealer said they would throw in a full tank of fuel, foot well mats and a boot mat.

The car and the extras are all at list price. Is it common to get a discount on the list prices on new cars?

Would like to hear other peoples experiences

Charles Babbage

The "list price" needs to seen in context of the trade in value given for your old car, this is often high and so that is where you are getting something.

dunner515

Thanks for the reply, never took that into consideration

noelf

That is a lot to spend on extras and you won't get back the value resale time .. what extras are you thinking of getting some are .not worth it .. what car are you considering ?

Handsome Brute

If the dealer knows you are shopping around then he will make sure to put the retail price up a bit while giving more for your trade in (because wherever you got the best price for your old car people normally buy). Their is a lot of places in the PCP contract to hide this hidden cost as its very noticeable in a straight purchase. You will notice the dealer asking you how you want to pay even though this shouldn't matter until the deal is about to be done which is a long way from your first contact with the salesman.

But generally speaking the price is the price it all depends what you are getting for your trade in.

What are you getting just out of interest?

dunner515

To be honest I'd rather not get into what car and what extras.
The resale value of the car I'm not worried about as I will have this 10+ years as I did/do with my current one and more than likely just use it as a trade in when that time comes around again in another 10 years time.

Handsome Brute

dunner515 wrote: »

To be honest I'd rather not get into what car and what extras.
The resale value of the car I'm not worried about as I will have this 10+ years as I did/do with my current one and more than likely just use it as a trade in when that time comes around again in another 10 years time.

Have you shopped around?

VincePP

Find out what price you'd get at auction for your car.

The difference between the estimated auction price and dealer trade in price is the "discount".

Typically you should be looking at 6-10% off rrp and more off extras.

Example
New car 30k
Auction price of trade-in = 3k
Dealers trade-in offer = 5k

Effective discount off rrp = 2k

dunner515

Yes I have shopped around and found this dealer in particular very easy to deal with compared to others

dunner515

So here's a scenario I didn't look into yet

Would I be looking for a discount if I weren't to use my car as a trade in?

bazz26

If your current car has a low resale value then yes it's nearly always better to sell it private to avail of a straight deal discount off the new car.

Henry Ford III

€7500 on extras? That's a lot of coin and you'll be unlikely get much value for it down the line.

p.s. What car is it?

monkeysnapper

Op doesn't want to give us to much info , but happy to get it .
7500 on extras sounds mind boggling. But op says keeping car for over 10 years so maybe this is worth it .

But we can't really judge this because we don't have any info.
Good luck with your purchase op , well ware

bazz26

OP plans to keep the car for 10+ years so resale value of the extras becomes immaterial. If you're keeping a car that long then you might as well spend extra up front on the things you will get enjoyment and value from rather than worrying about the next owner.

Gael23

I find it a bit odd that the OP won't divulge what kind of car it is? €7500 on extras is massive and y won't get much of it back.

Stoolbend

A bit off topic I know but does pcp make sense if someone plans to keep the car 10 years?

It'll have to be refinanced after 3 years.

colm_mcm

If it's at a low interest rate then it would make sense.

pablo128

Gael23 wrote: »

I find it a bit odd that the OP won't divulge what kind of car it is? €7500 on extras is massive and y won't get much of it back.

He won't get it back in money but at least he won't be sitting in a poverty spec yoke for 10 years.

Dero

Gael23 wrote: »

I find it a bit odd that the OP won't divulge what kind of car it is? €7500 on extras is massive and y won't get much of it back.

I personally find this a bit odd. How do you figure he won't get it back? It may not make sense to people who can only think in figures, but it it gets the OP the car they want (and especially if he's in for the long haul), then he certainly will get much of it back.

Handsome Brute

Dero wrote: »

I personally find this a bit odd. How do you figure he won't get it back? It may not make sense to people who can only think in figures, but it it gets the OP the car they want (and especially if he's in for the long haul), then he certainly will get much of it back.

When he goes to trade the car back dealerships don't count extras as value. So the car will be worth the same in 10 years as a car with no extras ( Give a €100 or two if your lucky)

Handsome Brute

We need to know what type of car it is to base our reaction off when it comes to figures. €7500 is standard for a BMW but if your buying a Skoda or something we need to advise you properly.

blackbox

Henry Ford III wrote: »

€7500 on extras? That's a lot of coin and you'll be unlikely get much value for it down the line.

p.s. What car is it?

He's probably buying the extras for himself, not for the next purchaser. He's planning to get ten year's use out of them. It's not compulsary to go Paddy spec.

BreadnBuddha

Handsome Brute wrote: »

When he goes to trade the car back dealerships don't count extras as value. So the car will be worth the same in 10 years as a car with no extras ( Give a €100 or two if your lucky)

You must have an incredible crystal ball to see 10 years into the future.

€7500 on extras isn't all that much to spend if it means you'll have the car you WANT for 10 years. Metallic paint, upgraded headunit/lighting/adaptive/styling options, winterpack etc.

If you want them and can afford them, you'd be a fool to buy without.

BreadnBuddha

Handsome Brute wrote: »

We need to know what type of car it is to base our reaction off when it comes to figures. €7500 is standard for a BMW but if your buying a Skoda or something we need to advise you properly.

No, you don't need to know and he/she is not looking for advise on how much they should pay for the options selected.

The OP is querying the discount they could reasonably expect to be available on a PCP financed purchase. Which car is pretty irrelevant, although in fairness, if they changed their mind in 3 years and wanted to exchange the car at that stage and go again, a higher spec car with some decent upgrades would have a higher GFV.

VincePP

Handsome Brute wrote: »

When he goes to trade the car back dealerships don't count extras as value. So the car will be worth the same in 10 years as a car with no extras ( Give a €100 or two if your lucky)

That's just a ridiculous comment.

Neither the car nor the "extras" keep their value, but as a user you get your value in the use of the vehicle and the exras can make that use more enjoyable / safer.

If the car costs €40k now - guess what, in 10 years time it will probably be worth less than €5k. - The extras may add €500 to the value and they will certainly help a quick sale.

Handsome Brute

VincePP wrote: »

That's just a ridiculous comment.

Neither the car nor the "extras" keep their value, but as a user you get your value in the use of the vehicle and the exras can make that use more enjoyable / safer.

If the car costs €40k now - guess what, in 10 years time it will probably be worth less than €5k. - The extras may add €500 to the value and they will certainly help a quick sale.

Was using a BMW 535 for a short while. The company had two of them. Drove the arse off it. Bought in 2006 for 96000 and traded in for under 10000. I remember that time another company car with the same mileage was only a 520 for the same price. It's the way it is. Extras are great craic yes and you can extra to your hearts content but all it can do is sweeten the deal down the road.

All I'm saying is that 3 or 10 years down the road when your trading it in the dealer isn't going to be getting out his product guide to see how much more he owes you will all your extras. Don't get me wrong I'm not afraid to extras the crap out of a car but just so the buyer is aware that he won't see it back per say then that's fine.

Everyone knows cars are the worst investment you can make money wise. But we still love them so who cares.

monkeysnapper

I have to say if I was buying a new car and wanted to keep it for the long hall I'd defo be interested in buying the extras , for me , 10 years plus of driving a great car .don't blame the op one bit .

7500 of extras will mean its one hell of a car without the extras .

Cause I was looking at a 141 car last year that was only 9500 ha ha . but then I'm at other end of the stick I feel .

dunner515

Thanks for all the replys everyone

Once the PCP is up in 3 years times I am just going to pay off the balloon payment in one go rather than refinance it
Hold onto the car for say another 7 years and more than likely just use that as a trade in for when the time comes,
what ever I get for it then I get for it.

I certainly don't consider it a monetary asset as it will only decrease in value over the years
I have speced this car to my own taste as I will be using it for the long haul