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

ChuckLarry

The_Honeybadger wrote: »

My original post was in response to someone saying that that interest rates are high. I was making the point that they are not necessarily high.

There are multiple factors to consider when buying a car and interest rate is an important one, it certainly is not irrelevant. Move the goalposts all you want, my post was about interest rates and nothing else.

Btw I bought my car the deal was done before finance was even mentioned so I’m not sure how they could have built it in to the cost when they didn’t know how I was paying.

A bad deal is a bad deal no matter what the rate but to say it’s irrelevant is ridiculous.

I second this, recently bought a car and trade in price was agreed, discount from list price haggled before financing was sorted

I actually had the salesman run 2 options of PCP and HP over 5 years to see what the monthlies would be like for each

Shefwedfan

ChuckLarry wrote: »

I second this, recently bought a car and trade in price was agreed, discount from list price haggled before financing was sorted

I actually had the salesman run 2 options of PCP and HP over 5 years to see what the monthlies would be like for each

Dealers have more margin if finance is involved, by doing the deal without mentioning finance you are just restricting your discount

Sunrise_Sunset

I can't ****in afford a decent car either

DaveyDave

Why are people acting as if 0% PCP makes them haemorrhage money? Very few cars are even 0%.

You can get a discount on a car if you want. The dealer will still make a profit on it. They'll also make a profit on servicing, overpriced wipers/tyres/floor mats and also paint protection kits. They probably get comission for GAP insurance. I hear VW pay commission on PCP sales also. Let's not forget retail, they even sell bicycles. Expensive jackets, polo shirts etc.

At the end of the day thousands of cars will be sold with thousands in interest. They're making profits on every single car sold and the bank is making extra money with interest. They can offer 0% finance because it's still profitable for them as they'll still make money. I doubt the dealer is "building 0% into the retail price" because it makes no difference to them. The bank is paying for the car for you, that doesn't make any difference to the dealer.

Here's a question for you. Why is it they're marking up the price to make up for 0% APR, but aren't marking up the price on all the bank/credit union loans that they aren't getting interest on too?

ml100

If you take the vag group, I'd be very surprised if they sell many cars on finance that isnt their PCP, and they have their own bank.

PaulKK

DaveyDave wrote: »

They probably get comission for GAP insurance.

They 100% do. It's 100-200 out of the 500 they charge afaik.

elperello

https://www.irishtimes.com/business/transport-and-tourism/toyota-ireland-says-it-has-financed-purchase-of-20-000-new-and-used-cars-1.3868422

Some interesting numbers in this article.
ie. Irish market €1.24bn in outstanding PCP loans at the end of June last year.

Toyotafanboi

But it's the bank taking the risk of most of that, not the consumer?

Shefwedfan

elperello wrote: »

https://www.irishtimes.com/business/transport-and-tourism/toyota-ireland-says-it-has-financed-purchase-of-20-000-new-and-used-cars-1.3868422

Some interesting numbers in this article.
ie. Irish market €1.24bn in outstanding PCP loans at the end of June last year.

Do you know how much we owe Europe? That’s chump change

elperello

Shefwedfan wrote: »

Do you know how much we owe Europe? That’s chump change

I'd say you are right.
A lot of chumps need to change the way they buy cars.

Shefwedfan

elperello wrote: »

I'd say you are right.
A lot of chumps need to change the way they buy cars.

Why? Did you get a figure for how much in car loans sitting in credit unions/banks etc?

I think you might find the numbers in those loans dwarf anything in PCP

But then that is good proper loans that BOI etc can charge stupid interest rates on so we don’t hear as much about them.....

elperello

elperello wrote: »

A lot of chumps need to change the way they buy cars.

Why? Some people’s fear and dislike of PCP is laughable.

elperello

Anahi Quaint Grouch wrote: »

Why? Some people’s fear and dislike of PCP is laughable.

No fear here.

The article is interesting, it covers more than PCP.

I think a lot of people spend more than is good for them on cars.

It's good for business but can be hard on personal finances.

Shefwedfan

elperello wrote: »

No fear here.

The article is interesting, it covers more than PCP.

I think a lot of people spend more than is good for them on cars.

It's good for business but can be hard on personal finances.

How do you know if they spend more than is good for them? I didn’t see a list of how many of these loans go bad or in general how many car loans go bad

Do you have some information to back up the statement? It’s a few times now people have mentioned something similar, do you have information on the finances of the general public?

GreeBo

Shefwedfan wrote: »

Who cares? Really if someone ask me what I drive I say cuz, if they ask me more details like model year etc then I will answer

I ain’t going to start going on about years and spec on initial question

Probably the person asking what you drive cares... otherwise whats the point?

Why tell them the make or model so?
Badge snobbery is better than reg snobbery somehow?

NIMAN

elperello wrote: »

https://www.irishtimes.com/business/transport-and-tourism/toyota-ireland-says-it-has-financed-purchase-of-20-000-new-and-used-cars-1.3868422

Some interesting numbers in this article.
ie. Irish market €1.24bn in outstanding PCP loans at the end of June last year.

The use of the word outstanding makes them sound like bad loans, when they aren't.

The difference in outstanding PCP and outstanding mortgage debt is that the car folk will take the car off you if you don't pay, whereas in Ireland you can stay in your house for years even if you refuse to pay your mortgage.

Shefwedfan

GreeBo wrote: »

Probably the person asking what you drive cares... otherwise whats the point?

Why tell them the make or model so?
Badge snobbery is better than reg snobbery somehow?

What now?

elperello

Shefwedfan wrote: »

How do you know if they spend more than is good for them? I didn’t see a list of how many of these loans go bad or in general how many car loans go bad

Do you have some information to back up the statement? It’s a few times now people have mentioned something similar, do you have information on the finances of the general public?

I don't have any information on the finances of the general public other than what is already in the public domain.

I know people personally who spend way more than they need to on cars.
They buy cars which are unsuitable for their needs and then compound the error by using borrowed money.
It's not that the loans go bad it's just that they get bad value for their outlay.

elperello

elperello wrote: »

I don't have any information on the finances of the general public other than what is already in the public domain.

I know people personally who spend way more than they need to on cars.
They buy cars which are unsuitable for their needs and then compound the error by using borrowed money.
It's not that the loans go bad it's just that they get bad value for their outlay.

But they buy cars that they want/like etc and why not if it’s what they want to do.

Twenty Grand

elperello wrote: »

No fear here.

The article is interesting, it covers more than PCP.

I think a lot of people spend more than is good for them on cars.

It's good for business but can be hard on personal finances.

I think most people don't understand the true cost of car ownership, especially for new and nearly new cars.

Was looking at used BMWs online.

730D I think, 71k new, up for private sale of 33k only four years later. Poor lad must have got a crap price from dealer. Easily get it for 30 if you wanted it.

One of the girls in work bought a second hand 318D from the dealer. Lovely car, but she didn't count on mandatory dealer service which runs from €300 to €1500.

GreeBo

elperello wrote: »

I don't have any information on the finances of the general public other than what is already in the public domain.

I know people personally who spend way more than they need to on cars.
They buy cars which are unsuitable for their needs and then compound the error by using borrowed money.
It's not that the loans go bad it's just that they get bad value for their outlay.

I know people who shop in m&s but could go to lidl instead.

Its that bad value for money or just a life choice?

Shefwedfan

elperello wrote: »

I don't have any information on the finances of the general public other than what is already in the public domain.

I know people personally who spend way more than they need to on cars.
They buy cars which are unsuitable for their needs and then compound the error by using borrowed money.
It's not that the loans go bad it's just that they get bad value for their outlay.

So you don’t know but you are guessing? You have no idea if they get bad value for money or not....

How do you know that those people army looking at you and saying you got bad value for your outlay?

I am just making a point, the amount of people on this thread who all seem to think they know what’s best for other people and everyone else got a bad deal bar them....

Shefwedfan

Twenty Grand wrote: »

I think most people don't understand the true cost of car ownership, especially for new and nearly new cars.

Was looking at used BMWs online.

730D I think, 71k new, up for private sale of 33k only four years later. Poor lad must have got a crap price from dealer. Easily get it for 30 if you wanted it.

One of the girls in work bought a second hand 318D from the dealer. Lovely car, but she didn't count on mandatory dealer service which runs from €300 to €1500.

Most of those high end car are company ones, written off over 3-4 years.,..unfortunately for you they are probably getting a better deal at 71k than the person buying at 33k

elperello

Shefwedfan wrote: »

So you don’t know but you are guessing? You have no idea if they get bad value for money or not....

How do you know that those people army looking at you and saying you got bad value for your outlay?

I am just making a point, the amount of people on this thread who all seem to think they know what’s best for other people and everyone else got a bad deal bar them....

I made a few bad deals in my time.
Indeed they might be saying I got bad value.
I'm not guessing when someone tells me the details of their latest purchase.

Shefwedfan

elperello wrote: »

I made a few bad deals in my time.
Indeed they might be saying I got bad value.
I'm not guessing when someone tells me the details of their latest purchase.

Yeah of course they tell you

Hold my phone a minute, have to catch this flying pig

elperello

Shefwedfan wrote: »

Yeah of course they tell you

Hold my phone a minute, have to catch this flying pig

Well I'm all for applying a bit of rigour in these discussions but if you don't believe what I'm saying its hard to know what to say.

Shefwedfan

elperello wrote: »

Well I'm all for applying a bit of rigour in these discussions but if you don't believe what I'm saying its hard to know what to say.

Of course random people come up and tell you all the details of their recent purchase and how they financed it....sure why wouldn’t they

It’s funny over the posts you gone from not knowing to now having the financial details of people, so much so you can tell what they should/shouldn’t spend on a car. So are you these people accountant?

corks finest

Johnnyhpipe wrote: »

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

Same bud,but by 40 years

elperello

Shefwedfan wrote: »

Of course random people come up and tell you all the details of their recent purchase and how they financed it....sure why wouldn’t they

It’s funny over the posts you gone from not knowing to now having the financial details of people, so much so you can tell what they should/shouldn’t spend on a car. So are you these people accountant?

I'm not talking about random people.
I already said that I was talking about people I know personally.
Of course it is their own decision on what to spend that doesn't stop me having an opinion

I'm not an accountant.

elperello

Anahi Quaint Grouch wrote: »

But they buy cars that they want/like etc and why not if it’s what they want to do.

I agree with you that they like and want them.
My point was that they could do a lot better car wise and financially.