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

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.

https://www.carzone.ie/used-cars/volvo/v40/used-2013-131-volvo-v40-2-0-d-se-luxu-dublin-fpa-201812203399359

Economical, 170HP, nice to drive, €11k

lawred2

[Deleted User] wrote: »

https://www.carzone.ie/used-cars/volvo/v40/used-2013-131-volvo-v40-2-0-d-se-luxu-dublin-fpa-201812203399359

Economical, 170HP, nice to drive, €11k

Old man has one of them. Very nice car to drive.

jmreire

lawred2 wrote: »

Dacias are an insult to the motorcar

Again when it come's to cars, everything is relative, I know people who drive Dacia's....and they are happy out. ( as far as I know, Dacia are basically Renault, but badged different) It gets them from A to B, and that's all they want, They are not interested in BHP, torque or remapping or clay barring the paint work. It's a (relatively ) cheap car, especially 2nd hand, and that's all they want.;)

iamtony

New cars are the worst investment ever. Noone should buy them unless they have everything else in life sorted and lots of money saved and invested.
We unfortunately live in a world where everyone likes to look good and look like they have loads of money but most of the people you see with new will probably have a negative net worth and live on borrowed money. It makes them happy for a while but in the long run they will be broke.
I bought a car because I need one for work and I gave 22k cash. I'm saving for my next one.

Op go see the bangernomics thread for now and start studying financial education stuff to learn how to budget and save wisely, why it's not thought in school is beyond me.
One good podcast I would recommend is the Dave Ramsey podcast. He runs a program called the financial peace university and it teaches you to live on peanuts now and clear all your debt before starting to save and invest and but stuff for cash in the future without worry or feeling bad about it.

iamtony

Squidgy Black wrote: »

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.

Or maybe they want a long warranty and peace of mind and realise they fit the budget and they don't care about the badge or looking good to the neighbors.

Idbatterim

Ill echo the other calls about cars being a waste of money ! My friends ask me for advice on them quite a bit, until you have actual important stuff accomplished, like saving for a home or buying it. Wasting money on a car , 99.9% on the road are totally unimpressive anyway. Wait till the **** hits the fan again and people eating cereal for breakfast seven days a week , while their cars depreciate like a brick and they are paying back big loans ...

BarryD2

Deleted User wrote: »

https://www.carzone.ie/used-cars/volvo/v40/used-2013-131-volvo-v40-2-0-d-se-luxu-dublin-fpa-201812203399359

Economical, 170HP, nice to drive, €11k

80,000 miles, 2010???? Hmm, be great if it was that?

High mileage kills a car as far as I've seen, things just start wearing out. Even if it's been regularly serviced.

Toyotafanboi

Idbatterim wrote: »

Ill echo the other calls about cars being a waste of money ! My friends ask me for advice on them quite a bit, until you have actual important stuff accomplished, like saving for a home or buying it. Wasting money on a car , 99.9% on the road are totally unimpressive anyway. Wait till the **** hits the fan again and people eating cereal for breakfast seven days a week , while their cars depreciate like a brick and they are paying back big loans ...

Sure look, life is for living too, might as well have nice things while you can, you'll be dead forever.

Obviously saving for a rainy day is important but a car loan is hardly reckless spending.

It's nice to have a new(ish) car.

A lot of people are coming around to the idea of what is the actual point of ownership of a car? People view it like a phone bill. I have a €1000 mobile phone, but it was really actually just €150 up front and €40x24. I like having a nice new phone, it's dependable, good battery life, it's nice to have a high spec one for taking photos and watching youtube etc. Could give a toss whether I own it or not. It's just a bill I can afford to pay for a nice item that I use and when I have it 2 years and it's paid for, you can be sure I'm going to roll it over again.

People see cars and particularly PCP that way now. If you can afford €2, 3, 400 a month and it gets you into a brand new car, then why not. Having a new car is nice, it's reliable, it's safe, it's got all the "mod cons", it's a predictable ownership experience and it's a nice thing to have. If you have a healthy income and can afford the repayments, sure why not. Why do you want to own a car outright anyway, what's the advantage? Having all your capital tied up in a depreciating asset? Sounds great.

If you've exercised good financial planning, if when there is another downturn and God forbid you are out of work etc then the car shouldn't become a burden, but if it does you can look at communicating with the dealer or finance company to restructure payments or to get out of the car completely if possible. Then you can buy the €1000 bangernomics of your dreams to get you around.

I'm not saying new cars on finance should be for everyone, but neither should bangernomics.

jmreire

Toyotafanboi wrote: »

Sure look, life is for living too, might as well have nice things while you can, you'll be dead forever.

Obviously saving for a rainy day is important but a car loan is hardly reckless spending.

It's nice to have a new(ish) car.

A lot of people are coming around to the idea of what is the actual point of ownership of a car? People view it like a phone bill. I have a €1000 mobile phone, but it was really actually just €150 up front and €40x24. I like having a nice new phone, it's dependable, good battery life, it's nice to have a high spec one for taking photos and watching youtube etc. Could give a toss whether I own it or not. It's just a bill I can afford to pay for a nice item that I use and when I have it 2 years and it's paid for, you can be sure I'm going to roll it over again.


Its all about what you want your self....you want the latest in everything? Fine go for it. But there is no one-size-fits-all, especially when it comes to cars.

People see cars and particularly PCP that way now. If you can afford €2, 3, 400 a month and it gets you into a brand new car, then why not. Having a new car is nice, it's reliable, it's safe, it's got all the "mod cons", it's a predictable ownership experience and it's a nice thing to have. If you have a healthy income and can afford the repayments, sure why not. Why do you want to own a car outright anyway, what's the advantage? Having all your capital tied up in a depreciating asset? Sounds great.

If you've exercised good financial planning, if when there is another downturn and God forbid you are out of work etc then the car shouldn't become a burden, but if it does you can look at communicating with the dealer or finance company to restructure payments or to get out of the car completely if possible. Then you can buy the €1000 bangernomics of your dreams to get you around.

I'm not saying new cars on finance should be for everyone, but neither should bangernomics.

Its all about what you want your self....you want the latest in everything? Fine go for it. But there is no one-size-fits-all, especially when it comes to cars.

lawred2

jmreire wrote: »

Its all about what you want your self....you want the latest in everything? Fine go for it. But there is no one-size-fits-all, especially when it comes to cars.

he said exactly that in the last line