How the f**k can you afford a decent car?

MontgomeryClift

Since my pay has increased nearly 50% over the last couple of years I thought I would buy a car that's not a thirsty, gutless and uncomfortable. I thought it would be nice to get something that had a bit of power, didn't cripple me on long journeys, and could play a podcast from USB without having wires all over the cabin leading into a homemade aux port in the glovebox.

But if I get something that meets those requirements, isn't ten years old, and doesn't have over 100,000 miles on it, I'd need about €15,000. How does anyone save that kind of money every few years working in a regular job? Do most people spread it out using finance? Even if I got finance, I would have to pay nearly €100 a week and over €2,000 in interest, and that's more than my pay can stand.

This is a serious inquiry. How does this work for most people? How do they lay their hands on new or new-ish cars? Are they all selling drugs on the side?

Cantona's Collars

PCP has allowed so many to get into new cars.

SCOOP 64

Most doing PCP.

Johnnyhpipe

I’m driving 15 years or more and have never not had a car loan ha ging over my head

Gael23

Credit union loan or PCP for a lot of pwoole

scwazrh

As we learned from the last recession everything nice in this country is on finance even if you can’t afford the finance

_Brian

Always harder the first time.

Then in three years you should have something worth a trade, maybe €5-6k and your only borrowing €9-10k next time.

Motoring is horrendously expensive.

Red Lightning

I'm in the exact same boat. Currently driving a 1.0 Nissan Pixo (not many others have heard of it either) and would love something stronger, more comfortable and has some decent specs. But as the OP says ya nearly need €15,000 at least. I'm 25 and have nothing saved.

Eric Cartman

https://www.donedeal.ie/cars-for-sale/mercedes-benz-e-class-2-1-e-200-cdi-be-avantgarde/21566824

2010, cheap tax, pretty efficient, 80k miles and they can be found with 300k miles on them easily as theyre built to be taxis

put down 2k in the credit union and repay just under 200 a month, no balloon payments or any other craic and its a decent car with reasonable running costs.

con___manx1

MontgomeryClift wrote: »

Since my pay has increased nearly 50% over the last couple of years I thought I would buy a car that's not a thirsty, gutless and uncomfortable. I thought it would be nice to get something that had a bit of power, didn't cripple me on long journeys, and could play a podcast from USB without having wires all over the cabin leading into a homemade aux port in the glovebox.

But if I get something that meets those requirements, isn't ten years old, and doesn't have over 100,000 miles on it, I'd need about €15,000. How does anyone save that kind of money every few years working in a regular job? Do most people spread it out using finance? Even if I got finance, I would have to pay nearly €100 a week and over €2,000 in interest, and that's more than my pay can stand.

This is a serious inquiry. How does this work for most people? How do they lay their hands on new or new-ish cars? Are they all selling drugs on the side?

If you buy a car privately or go up north you can save yourself a grand or two at least. I have an audi a3 black addition. its 6 years old with only 85000 k on the clock when i bought it.
I bought it private and saved at least 1000 euro on it. Warranty only lasts 6 months in most garages. I have the car a year now and not a bother.i Paid under 12 for it. Took a loan of 5k and pay 200 a month so not to bad.

Shefwedfan

Most car can do 300k miles with proper maintenance/servicing.....

owning and maintaining a car is not cheap. Hence why companies like GoCar etc are starting up and been successful. You buy what meets your budget. Start at the bottom and work out....

Very few people buy an expensive car first up....

artanevilla

Expensive does not equal decent.

ednwireland

Paid 8k for a 131 kia ceed sw not the greatest car I admit but has steering wheel controls, led drls. Bluetooth, USB and aux inputs 2 12v sockets in the front one on the boot, refrigerated glove box,cornering lights. speed limiter, cruise control, folding wing mirrors, puddle lights.
So ticked most of the boxes but it does have 105k miles on it but drives like a newer car.
Let someone else take the depreciation but I say.

ShadowHearth

scwazrh wrote: »

As we learned from the last recession everything nice in this country is on finance even if you can’t afford the finance

Finance by it self is not evil, it's people who don't understand it are idiots, and make it look evil.

I have no problem financing cars. I do my research, do maths if I can afford it and make sure I have savings reserved. I much prefer spending banks money then my own. If it's low apr or Zero, then it's even better.
New/newish cars are a luxury items and you decide yourself how much you willing to pay for that luxury. I drive 120km 4-6 days a week. Buying ****ty Micra would be the cheapest option. On the other hand I spend 2h in car each day, so might as well spend extra money on something nice.
15k can buy you a nice car. Even 10k can buy you a nice car. A lot of people financing it. For every 100 people who do their research before buying car on finance and happy out in the end, there will be one lialia, who will just sign a document and only then realise that he can't afford. Everyone's fault, but not his.

MontgomeryClift

Thanks for the replies. I've looked at PCP it makes sense in a way, but only if I'm prepared to think of the monthly repayments as rent on the car that will never be mine or if I'm prepared to continue the scheme and update the car every few years. I couldn't imagine paying the minimum value all at once come the end of the term.

If I buy a decent 2013 car for €15,000 and keep it for seven years until it's 13 years old and worth practically nothing, as I work it out the weekly depreciation will be less than €50 per week, albeit with higher maintenance costs because the car is older. That's cheaper than a PCP repayment of, let's say, €80 per week, but I have to have €15,000 and be in a position to spend it all at once on a car. If I can get over the desire to own a car outright I can see the sense in PCP, just looking at the numbers.

Shefwedfan

MontgomeryClift wrote: »

Thanks for the replies. I've looked at PCP it makes sense in a way, but only if I'm prepared to think of the monthly repayments as rent on the car that will never be mine or if I'm prepared to continue the scheme and update the car every few years. I couldn't imagine paying the minimum value all at once come the end of the term.

If I buy a decent 2013 car for €15,000 and keep it for seven years until it's 13 years old and worth practically nothing, as I work it out the weekly depreciation will be less than €50 per week, albeit with higher maintenance costs because the car is older. That's cheaper than a PCP repayment of, let's say, €80 per week, but I have to have €15,000 and be in a position to spend it all at once on a car. If I can get over the desire to own a car outright I can see the sense in PCP, just looking at the numbers.

If paying 15k of course the option could be electric.Fuel/tax/insurance/maintenance costs are a lot lower to combustion engine. This will help pay off the car quicker.It does depend on your requirements if it will suit you or not



I bought mine and depreciation is minimal so far, that of course is going to increase as more cars become available.

mloc123

PCP is not some magic trick... it is another way of spreading the finance on a car over a number of years, it is probably best viewed as a lease if you do not intend to buy the car out at the end.

On the topic in general on how people afford cards, average industrial wage is now ~46k which is about 2900/month net. So your original example of 100e a week or 425e a month is a little less than 15% of that.

Mike9832

If you can't pay cash for it, you can't afford it/ your spending too much money on it imo

kevthegaff

I had a avensis 2 litre for 3 years bought for 5000 euros, seriously reliable but at the end battery needed changing, nct was up, 750 tax, and needed family car for bigger family, only depreciated 1500 a year.. as I got 500 for it. Bought a 16 galaxy under a loan for 4.2% over 5 years for 20k. Tax is 280, car has 90k on clock, 6 month warranty and 2 yrs nct. Their value hold very well and I suspect it will depreciate around 2-3k a year with lower tax and hopefully running costs and more comfort and space

mloc123

Mike9832 wrote: »

If you can't pay cash for it, you can't afford it/ your spending too much money on it imo

What about about a scenario where you can use a 0% PCP deal?

You have 30k in cash, pay down 3k to cover the 10%.. make monthly payments for 3 years@0% while your 27k earns interest elsewhere. You then pay the remaining lump sum at the end.

Total cost of credit is zero, while you have earned interest on your savings.

janfebmar

MontgomeryClift wrote: »

Since my pay has increased nearly 50% over the last couple of years I thought I would buy a car that's not a thirsty, gutless and uncomfortable. I thought it would be nice to get something that had a bit of power, didn't cripple me on long journeys, and could play a podcast from USB without having wires all over the cabin leading into a homemade aux port in the glovebox.

But if I get something that meets those requirements, isn't ten years old, and doesn't have over 100,000 miles on it, I'd need about €15,000. How does anyone save that kind of money every few years working in a regular job? Do most people spread it out using finance? Even if I got finance, I would have to pay nearly €100 a week and over €2,000 in interest, and that's more than my pay can stand.

This is a serious inquiry. How does this work for most people?

Most people in the world do not have to pay the rip off car prices due to high taxation here in this country. I always thought the EU / EEC was to be a "common market".

Idbatterim

at your budget , youd get an a7 I think...

ticks all of your boxes. Many people lose a fortune running cars, cars that are **** for the most part. If Im going to be losing quite a bit, Ill do it in a car that you can justify it in!

Depreciation is the biggest killer they overlook! the difference between the E190 and E280 could actually be a deciding factor for them. Forget about total cost of ownership or any of that nonsese :rolleyes:

PaulKK

MontgomeryClift wrote: »

Thanks for the replies. I've looked at PCP it makes sense in a way, but only if I'm prepared to think of the monthly repayments as rent on the car that will never be mine or if I'm prepared to continue the scheme and update the car every few years. I couldn't imagine paying the minimum value all at once come the end of the term.

You could always finance the minimum value after 3 years and keep the car. It will only be 3 years old and you should end up with a 6 year old car that you own outright and owned by you from new. VW bank have very reasonable finance rates for example.

Plus if you get 0% initially you only end up paying interest on the minimum value and not the entire car value.

Mike9832

mloc123 wrote: »

What about about a scenario where you can use a 0% PCP deal?

You have 30k in cash, pay down 3k to cover the 10%.. make monthly payments for 3 years@0% while your 27k earns interest elsewhere. You then pay the remaining lump sum at the end.

Total cost of credit is zero, while you have earned interest on your savings.

If you can easily afford it of course

It's always cheaper with cash though

0% is only on models they have trouble selling

No meaningful interest on savings now, you have to invest

pinktoe

MontgomeryClift wrote: »

This is a serious inquiry. How does this work for most people? How do they lay their hands on new or new-ish cars? Are they all selling drugs on the side?

Aahhh Irish mentality, if I can't afford it you must a criminal.

How much do you piss down the pub toilet? Would that not go a long way on buying a decent car for you?

Save up for six months and get a car loan based on what you can afford.
Forget PCP that's for people who think they are financially better off than they are.

Wheety

OP, you looking at petrol? I'm also looking at changing car. Would like from 2014 onwards. Most of the cars out there are diesel. As soon as I remove them, the numbers drop massively. I don't do the mileage for a diesel.

lawred2

Eric Cartman wrote: »

https://www.donedeal.ie/cars-for-sale/mercedes-benz-e-class-2-1-e-200-cdi-be-avantgarde/21566824

2010, cheap tax, pretty efficient, 80k miles and they can be found with 300k miles on them easily as theyre built to be taxis

put down 2k in the credit union and repay just under 200 a month, no balloon payments or any other craic and its a decent car with reasonable running costs.

Jesus I want that..

Shefwedfan

OSI wrote: »

Yes, I hear they have awful trouble shifting those unheard of models like the Golf, Tiguan and Passat :rolleyes:

They offer 0% on those model because the next gen is coming out and they want to clear stock, you can grab a deal as long as you are aware that in a few months time a new model will be on market

This of course hits your resale value....so the 0% will be good if you plan to buy the car but if you want to continue on PCP you need to check how it will affect you

Mike9832

OSI wrote: »

Yes, I hear they have awful trouble shifting those unheard of models like the Golf, Tiguan and Passat :rolleyes:

Try it on a decent one

Shefwedfan

Eric Cartman wrote: »

https://www.donedeal.ie/cars-for-sale/mercedes-benz-e-class-2-1-e-200-cdi-be-avantgarde/21566824

2010, cheap tax, pretty efficient, 80k miles and they can be found with 300k miles on them easily as theyre built to be taxis

put down 2k in the credit union and repay just under 200 a month, no balloon payments or any other craic and its a decent car with reasonable running costs.

I would be doing some serious checking on your mileage on that

I don’t know how these dealers are able to find them gems if cars with low mileage, not one but he seems to have a few in stock, must be lucky dealer

Shefwedfan

OSI wrote: »

Bull****. They've been doing it 3 years plus and I've already rolled over a PCP contract at near zero cost to me. Both on 40k+ cars.

Little aggressive?

So tell me which car they offered 0% on after they released it?

You do realise VW make money out of PCP? 0% or not?

Dr. Kenneth Noisewater

I bought a 3 year old Honda Accord in 2013 for what worked out to be around €17,000 at the time, for which I got a credit union loan of €15k and put the other 2 grand towards it myself. Paid off the loan at around €100 a week for three years.

At the end of it, I had a 6 year old car bought and paid for, one which I'm happy to be still driving now (almost 9 years old at this stage) and will probably get at least another 2 or 3 years out of, probably longer.

If you're more worried than the car itself than the number plate, you can drive a decent car and not crease yourself financially.

Idbatterim

those e classes look like peasant mobiles next to the below. The only cars I would be considering around the 15k price mark are an A7 or facelift S class... the one immediately below was only updated two days ago, christ knows what that was new!

https://www.carzone.ie/used-cars/mercedes-benz/s-class/used-2012-mercedes-benz-s-class-c-wicklow-fpa-201904046615157

https://www.carzone.ie/used-cars/mercedes-benz/s-class/used-2011-mercedes-benz-s-class-3-meath-fpa-201901304448370

Hoboo

Shefwedfan wrote: »

I would be doing some serious checking on your mileage on that

I don’t know how these dealers are able to find them gems if cars with low mileage, not one but he seems to have a few in stock, must be lucky dealer

Few of how many? He has 3 and 4 year old cars with 60k miles.and 5 year olds with 100k. Out of 188 cars.

Mike9832

OSI wrote: »

You mean like the Golf GTI? Had one. 0%

Exactly my point

One's they can't sell

No one want's a petrol GTI

jmreire

Idbatterim wrote: »

those e classes look like peasant mobiles next to the below. The only cars I would be considering around the 15k price mark are an A7 or facelift S class... the one immediately below was only updated two days ago, christ knows what that was new!

https://www.carzone.ie/used-cars/mercedes-benz/s-class/used-2012-mercedes-benz-s-class-c-wicklow-fpa-201904046615157

https://www.carzone.ie/used-cars/mercedes-benz/s-class/used-2011-mercedes-benz-s-class-3-meath-fpa-201901304448370

I would suffer on bravely in either one of those..;););)..those engines go forever with proper servicing.

Shefwedfan

OSI wrote: »

Oh so we've gone from them only offering on models that will be replaced in a few months to they don't offer it on new models. If this was a football pitch you'd have just shifted the goalposts to the half way line :rolleyes:

And breath, you will get a heart attack. Nobody moving anything

Most cars after initial launch are not available at 0%, agree?
They say as a new model for say 12-15 months, Agree?
Normally they will get a mid cycle refresh in year 3, agree?
Then new model in year 6-7, agree?
So from 15 months onwards you typically see offers of 0% etc?

Any problem with the above?

As per original post you get offers like 0% when the car is getting replaced.....why would they offer 0% on a new released model which should have good sales

jmreire

In any car that I ever owned, , graduating from €150 banger's ( going back in time with these ones ) up to more recent and newer cars, where I had to borrow ( credit union ), I have always kept that car for the rest of it's natural life, believing in the principle that it only start's to pay for itself, after the loan is cleared. Then every mile is a bonus mile. I know that a lot of people are worried about reliability, and increased maintenance costs as the car ages...and so they will change regularly. But I find that even including increased maintenance costs, it will still work out cheaper per Klm as time goes on. The thing is though, you have to select a car that you will be comfortable and happy driving in 5+ years down the road. Mercs are a good example of this, but to each his own. I know that PCP is the way to go for a lot of People.....but I would prefer to get a credit or bank loan, and have something left at the end of it.

Mike9832

jmreire wrote: »

I know that PCP is the way to go for a lot of People.....but I would prefer to get a credit or bank loan, and have something left at the end of it.

PCP is far better even if you want to own the car

Know one in their right mind would buy an expensive car with a credit union loan

That shower take like 8% interest, over 5 years you've nearly half the price given back in interest

0% pcp works great if you can get a car you are happy with

jmreire

Mike9832 wrote: »

PCP is far better even if you want to own the car

Know one in their right mind would buy an expensive car with a credit union loan

That shower take like 8% interest, over 5 years you've nearly half the price given back in interest

0% pcp works great if you can get a car you are happy with

Well different strokes for different folks.....take the 2010 E Class Mercedes, selling for €10'750. That's a lot of car for that kind of money, when you consider what it wold have cost new back in 2010. Current price range for a 2019 Merc E class start's at €58'000 to €75'000. So while the point you make about a credit union loan is valid ( but there are cheaper loans out there... much cheaper, in fact. The Credit Unions in Ireland have long departed from the original intent.. to give the ordinary working man or woman access to cheap cash ) you will already have saved quite a lot in depreciation. And over time it will pay it's way.If PCP is the way to go for you, or a bank loan, and you want to change the car regularly, that's fine too. But you reckon that @8% some one borrowing €10'000 over 5 years, will end up paying €15'000 ?

The_Honeybadger

Mike9832 wrote: »

If you can't pay cash for it, you can't afford it/ your spending too much money on it imo

I don’t agree, plenty of people like myself pay monthly with no issues at all. If you can get a low interest rate and have a secure job then finance is a great option to have. I do a lot of work mileage and absolutely need a reliable and comfortable car, and the expenses payments pretty much cover the cost. The issues arise when people overstretch themselves for something they don’t need and can’t afford.

Seweryn

artanevilla wrote: »

Expensive does not equal decent.

Exactly. I have always been diving a decent car, which I normally keep for a few years. But have never spent 2k buying it. Because the second hand car market is flooded you can pick a decent car for small enough money.

mloc123

Mike9832 wrote: »

Exactly my point

One's they can't sell

No one want's a petrol GTI

Hahahahaha... the 30-40 posters in the GTI/R buying thread obviously do not agree with you.

honeybear

Just bought my 3rd car recently (had my previous one 10 years). Spent 20k on a 2 year old nice car. Colleague who I work with bought a 171 Dacia new & is trading in for a new one at a cost of over 8k. I think that’s mad, especially considering she is still waiting for it & has it ordered since November. Also her current 171 is in terrific condition. The only time I’ll ever buy new is if I win the lotto

Nikki Sixx

€5000 should get you a solid car, with the type of music set up you want.

lawred2

honeybear wrote: »

Just bought my 3rd car recently (had my previous one 10 years). Spent 20k on a 2 year old nice car. Colleague who I work with bought a 171 Dacia new & is trading in for a new one at a cost of over 8k. I think that’s mad, especially considering she is still waiting for it & has it ordered since November. Also her current 171 is in terrific condition. The only time I’ll ever buy new is if I win the lotto

Dacias are an insult to the motorcar

Nikki Sixx

lawred2 wrote: »

Dacias are an insult to the motorcar

At least Dacias give people with less money the chance to own a new car. (I don’t own one myself). I’m guessing they would have poor resale value though.

lawred2

Nikki Sixx wrote: »

At least Dacias give people with less money the chance to own a new car. (I don’t own one myself). I’m guessing they would have poor resale value though.

tenuous - even a 'new' Dacia is an old car

Squidgy Black

Nikki Sixx wrote: »

At least Dacias give people with less money the chance to own a new car. (I don’t own one myself). I’m guessing they would have poor resale value though.

Dacia is essentially just an option for people to be able to have a newer reg to park on their drive so the neighbours see, their interior is outdated and cheap, the engines are the same ones they've been using in Renault and Nissans for the past decade.

Dravokivich

Had an issue with a car at the end of last year, that I couldn't get fixed, so got a 5 year loan, with lower monthly payments. It was something I had thought of doing a year before hand, but didn't at the time as I was afraid of having to deal with getting a loan. At 34, it was the first time I've ever done it. in 4.5 years time, I'll probably do it again. The car I'm driving at the moment feels like a penance .

Seweryn

lawred2 wrote: »

tenuous - even a 'new' Dacia is an old car

It doesn't matter. It has new number plates and is going to last just as long as more expensive cars made today.