New car or pay big tax?

newinvestor

Looking to tap into the knowledge on this forum , I know nothing about cars and values. I am driving a 2006 passat the NCT is due and the car tax its 1.9 diesel. It has no problems I only drive it 20km a week to collect kids from school I commute by bike my wife has a car also , have considered ways to be a one car family but its not practical.

It kills me to pay 600+ each year car tax for a car I drive so little but it doesn't seem worth it to buy a car with cheaper tax because of the initial outlay on a new car or used car.

Any opinions on what I should do ? Thanks in advance

colm_mcm

Just keep it. You’ll only save €350-400 a year in tax by trading up. Even over 5 years that’s only €1500-2000.

Harry Palmr

Never buy a new car full stop.

The only thing to think about for me is whether it makes any sense to sell your current car and buy a small petrol post mid 2008 and take advantage of the lower tax rate as you won't be paying any more/less for insurance and 20km a week fuel cost is obviously very modest. That's really down to what you reckon you can get for the Passat v the cost of a slightly younger roundabout. If you're both working you can probably make it work.

AMKC

Maybe look at buying an electric car like a Nissan Leaf. You can get great deals on second hand ones now.

Yourmama

Between tax, insurance, petrol and service maybe taxi would be cheaper? Did you try to calculate it this way?

newinvestor

Yourmama wrote: »

Between tax, insurance, petrol and service maybe taxi would be cheaper? Did you try to calculate it this way?

I did think this way but I've to collect the kids 2 days a week and drop them to school them same days its a 2km drive it'd be a nuisance tbh getting a taxi on these mornings and waiting for a taxi after school it's an idea but not convenient.
The government have really penalised people with older cars.

I haven't serviced the car since I got it literally did nothing with it , had it NCT'd last year and it passed fine , have it since 2010 and haven't done a thing with it. NCt last year showed I only did 820km's in the year. I'm reluctant to spend any more on cars because I commute by bike.

drunkmonkey

That's not big tax, £470 in old money if it makes you feel any better.

newinvestor

drunkmonkey wrote: »

That's not big tax, £470 in old money if it makes you feel any better.

Well compared to a 2009 passat its over double for the same car.

Its 673€ I have the money its just the principle of paying for something I rarely use.

colm_mcm

newinvestor wrote: »

I did think this way but I've to collect the kids 2 days a week and drop them to school them same days its a 2km drive it'd be a nuisance tbh getting a taxi on these mornings and waiting for a taxi after school it's an idea but not convenient.
The government have really penalised people with older cars.

I haven't serviced the car since I got it literally did nothing with it , had it NCT'd last year and it passed fine , have it since 2010 and haven't done a thing with it. NCt last year showed I only did 820km's in the year. I'm reluctant to spend any more on cars because I commute by bike.

You’d want to at least change the oil if you’re keeping it another while

commited

I think you're a prime candidate for a Nissan Leaf or something like that.
https://www.donedeal.ie/cars-for-sale/nissan-leaf/17355753

Alternatively, just switch the passat for a 1.0 Yaris or something similar - you'll save money on tax, insurance etc and it will still do the 20km/week.

bazz26

When I saw the thread title I thought this discussion was about the virtues of taxing some 3.0 litre or 4.0 litre barge, not a 1.9 TDi.

crazyjim

bazz26 wrote: »

When I saw the thread title I thought this discussion was about the virtues of taxing some 3.0 litre or 4.0 litre barge, not a 1.9 TDi.

+1 I saw this and thought 'Thank God somebody else wants a 2006 V8 with 4.4 litre engine and is looking to rationalise paying the motor tax ' - Panzerlust I call it

dubrov

Keeping your current car will probably save you €500 in tax/insurance/fuel costs.
Maybe budget another €500 for repairs.

A new car might depreciate at 6k per year.

There is no comparison financially. A new car will cost you way more but then it is nicer to drive a new car.

Lantus

It's a good deal so far. I'd keep it until servicing or insurance limits kick in.

Then I'd look at a leaf or cheap petrol.

Any car new or old requires financing which is a big cost. The savings in tax won't offset the loan repayments.

Buy on need and I would start saving 300 a month now for a replacement. You know it's coming in say around 3 years give or take and 10k saved now is better than a new car and debt.

newinvestor

crazyjim wrote: »

+1 I saw this and thought 'Thank God somebody else wants a 2006 V8 with 4.4 litre engine and is looking to rationalise paying the motor tax ' - Panzerlust I call it

Money is not an issue I could afford to buy a new Ferrari and drive it around but it’s the principle of paying more tax for an older car just because it’s pre 2009, and that’s before we get into the state of irish roads

Colser

newinvestor wrote: »

Money is not an issue I could afford to buy a new Ferrari and drive it around but it’s the principle of paying more tax for an older car just because it’s pre 2009, and that’s before we get into the state of irish roads

Can you declare it off the road during the summer months when the kids are on holiday and not pay tax for those months?

bazz26

newinvestor wrote: »

Money is not an issue I could afford to buy a new Ferrari and drive it around but it’s the principle of paying more tax for an older car just because it’s pre 2009, and that’s before we get into the state of irish roads

Spending thousands on a newer car to save a few hundred in motor tax is a flawed principle.

newinvestor

bazz26 wrote: »

Spending thousands on a newer car to save a few hundred in motor tax is a flawed principle.

I’ve come to that conclusion cars are the worst investment you will ever make depreciation is shocking I’ll run the Passat into group and buy a 1 litre petrol banger.

bazz26

Very few cars are investments. They are depreciating commodities just like a TV, mobile phone, etc.

Lantus

newinvestor wrote:

Money is not an issue I could afford to buy a new Ferrari and drive it around but it’s the principle of paying more tax for an older car just because it’s pre 2009, and that’s before we get into the state of irish roads

You want to save a few hundred on tax out of principle but you can afford 100k on new car?

What's the question again???

theoneeyedman

newinvestor wrote: »

I’ve come to that conclusion cars are the worst investment you will ever make depreciation is shocking I’ll run the Passat into group and buy a 1 litre petrol banger.

A car is not an asset, it's a liability.

dr.fuzzenstein

newinvestor wrote: »

I’ve come to that conclusion cars are the worst investment you will ever make depreciation is shocking I’ll run the Passat into group and buy a 1 litre petrol banger.

If it drives, flies, floats or fcuks, you are better off leasing it.

2Mad2BeMad

newinvestor wrote: »

I’ve come to that conclusion cars are the worst investment you will ever make depreciation is shocking I’ll run the Passat into group and buy a 1 litre petrol banger.

Cars are not investments
Unless you are a dealer, there is no point in thinking that buying a car (any car new or old) will make you money.

2km? Walk. Better for you, better for your childrens

Hoboo

newinvestor wrote: »

Money is not an issue I could afford to buy a new Ferrari and drive it around but it’s the principle of paying more tax for an older car just because it’s pre 2009, and that’s before we get into the state of irish roads

Just buy a helicopter then, zero road tax. Sorted.

newinvestor

Hoboo wrote: »

Just buy a helicopter then, zero road tax. Sorted.

Had a good laugh at that

Browsing donedeal passats have huge mileage on them

https://www.donedeal.ie/cars-for-sale/volkswagen-passat-1-6-diesels-tdi/17851957

That looks a good deal would I get 20 years out of it ? 140,000km's seems really high how many km's do these things go without trouble? Would that mileage put people off?

Staph

High mileage cars do not put me off, as long as they are maintained. Some people seem to think cars seize/explode as soon as they exceed 100000km.

colm_mcm

newinvestor wrote: »

Had a good laugh at that

Browsing donedeal passats have huge mileage on them

https://www.donedeal.ie/cars-for-sale/volkswagen-passat-1-6-diesels-tdi/17851957

That looks a good deal would I get 20 years out of it ? 140,000km's seems really high how many km's do these things go without trouble? Would that mileage put people off?

That has more moneypit potential than your current car.

Harry Palmr

bazz26 wrote: »

Very few cars are investments. They are depreciating commodities just like a TV, mobile phone, etc.

Any sensibly priced car that allows someone to work or get a better job is an investment.

clfy39tzve8njq

newinvestor wrote:

Browsing donedeal passats have huge mileage on them

Why are you looking at diesels if you only drive 20 km a week ?

bazz26

Harry Palmr wrote: »

Any sensibly priced car that allows someone to work or get a better job is an investment.

The OP's current car will do that then.