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

ShadowHearth

lalababa wrote: »

I'm not trying to put anyone down thank you very much. I would Hazzard a guess that you know very little about cars. There are solid saloons (and hatches such as clio) with very high safety features. Reliability..just get your mechanic to check and service! Infact there can be less to go wrong with older less complicated designs. As for infotainment ..what exactly is the deal breaker there....? Must have wifi??

*Gets popcorn.

This is going to be awesome.

ednwireland

Deleted User wrote: »

So, never getting a mortgage then?

bank still owns the house until the last payment its not yours despite what people think.

AAAAAAAAA

Toyotafanboi wrote: »

If you want something nice in the sense of say modern safety equipment or infotainment, reliability etc, €500 won't get you the time of day

"Infotainment" is pretty worthless anyway as things go, especially with the new trend of touchscreen controlling everything. All it means is you're more distracted as there's no feedback when changing the aircon or anything and you're forced to take your eyes off the road.

Safety equipment, probably not that big a deal if the car was built in the last 20 years.

Reliability is the only one of these I'd say is an actual issue. You will be expecting it to die, and replacing parts/tyres on it is more costly than simply replacing it

realdanbreen

Anyone forking out more than four or five K for a car is going to be the type that logs into instagram or Facebook to show that they are having a meal out! Most cars nowadays will do 400k no bother so why would you spend 20k for a newer number plate.

Shefwedfan

realdanbreen wrote: »

Anyone forking out more than four or five K for a car is going to be the type that logs into instagram or Facebook to show that they are having a meal out! Most cars nowadays will do 400k no bother so why would you spend 20k for a newer number plate.

You do realize people need to buy new cars so you can buy second hand cars??

mloc123

lalababa wrote: »

Let's say I had only 500 quid in my pocket but could save 500 a month (by foregoing other luxuries/essentials and working overtime) to put into pcp. So I could 'buy' a new BMW. Everything is fine and dandy driving around in my new BMW.. neighbors saying isn't he doing well for himself..till they cut my hours at work..I get sick...etc.

I suspect there is a pretty big gap in peoples viewpoints here... I assume most posters are in salaried jobs, with a set income even if they are out sick for a few weeks... or months.

ShadowHearth

realdanbreen wrote: »

Anyone forking out more than four or five K for a car is going to be the type that logs into instagram or Facebook to show that they are having a meal out! Most cars nowadays will do 400k no bother so why would you spend 20k for a newer number plate.

This thread really getting better and better. I love it!
The way it goes, I will have to jump in to my PCP car, get a selfie with "Feeling pretty, might go get some more popcorn for this thread, idk!".

lalababa

There is nothing much wrong with pcp, IMO, it's just a low interest higher purchase loan. It makes sense to alot of people.
But I would worry about the trend of more & more , newer & newer, costlyer & costlyer vehicles being purchased on pcp. We seem to be aping the materialistic USA.That and house prices rising, coz when the downturn hits we're left with a high mortgage and pcp loan.

iamtony

Kevin Irving wrote: »

Whether you borrow money or save it, it's largely the same in the long run. You'd have a very poor quality of life if you decided to save for a house rather than take out a mortgage.

I would much prefer to spend the bank's money on a decent car than save for a few years to buy it. The interest rate is a negligible amount per month and I can drive a decent car in the time someone else would be saving for it.

I can then use my own money for things more important than a car, and leave the bank's money tied up in a car.

Yes, it's going to depreciate, but so will the car that the guy has saved to buy.

Basically it comes down to the question:
Am I prepared to pay X amount of interest for the loan, rather than wait to buy a new car?

The average monthly car payment in the US is $500 dollars a month over 5 years(30,000).
I can't remember the exact figures I heard but that amount invested wisely over 5 years turns into over 100,000. Then you buy your car and put the 70k off your mortgage or whatever.
And a mortgage is very different to a car loan, personal losn or spending money on a credit card.

realdanbreen

ShadowHearth wrote: »

realdanbreen wrote: »

Anyone forking out more than four or five K for a car is going to be the type that logs into instagram or Facebook to show that they are having a meal out! Most cars nowadays will do 400k no bother so why would you spend 20k for a newer number plate.

This thread really getting better and better. I love it!
The way it goes, I will have to jump in to my PCP car, get a selfie with "Feeling pretty, might go get some more popcorn for this thread, idk!".

Absolutely, and the gas thing is that most fellas I know who are making repayments on 182 SUV's spend the week nights with the car parked up and watching the chase or catchphrase while I'm down at the local with the 00 passat parked outside!

realdanbreen

ShadowHearth wrote: »

realdanbreen wrote: »

Anyone forking out more than four or five K for a car is going to be the type that logs into instagram or Facebook to show that they are having a meal out! Most cars nowadays will do 400k no bother so why would you spend 20k for a newer number plate.

This thread really getting better and better. I love it!
The way it goes, I will have to jump in to my PCP car, get a selfie with "Feeling pretty, might go get some more popcorn for this thread, idk!".

Absolutely, and the gas thing is that most fellas I know who are making repayments on 182 SUV's spend the week nights with the car parked up and watching the chase or catchphrase while I'm down at the local with the 00 passat parked outside!

mloc123

realdanbreen wrote: »

Absolutely, and the gas thing is that most fellas I know who are making repayments on 182 SUV's spend the week nights with the car parked up and watching the chase or catchphrase while I'm down at the local with the 00 passat parked outside!

And getting a taxi home after I hope?

ChuckLarry

iamtony wrote: »

The average monthly car payment in the US is $500 dollars a month over 5 years(30,000).
I can't remember the exact figures I heard but that amount invested wisely over 5 years turns into over 100,000. Then you buy your car and put the 70k off your mortgage or whatever.
And a mortgage is very different to a car loan, personal losn or spending money on a credit card.

While there is some good long term investment opportunities out there at the moment I highly doubt there is any offering over 3 times your initial investement to be honest haha

If making money was that easy sure we’d all be loaded

mloc123

ChuckLarry wrote: »

While there is some good long term investment opportunities out there at the moment I highly doubt there is any offering over 3 times your initial investement to be honest haha

If making money was that easy sure we’d all be loaded

I wish my PRSA had returns like that...

Donald Trump

iamtony wrote: »

The average monthly car payment in the US is $500 dollars a month over 5 years(30,000).
I can't remember the exact figures I heard but that amount invested wisely over 5 years turns into over 100,000. Then you buy your car and put the 70k off your mortgage or whatever.
And a mortgage is very different to a car loan, personal losn or spending money on a credit card.

100k?


Maybe if you invest that 30k in importing/making and selling crack and don't get caught or killed.

Or maybe you got a spam email offering to give you 100k in 5 years if you "invested" 30k now?

Other than that................ crazy talk.

ChuckLarry

mloc123 wrote: »

I wish my PRSA had returns like that...

Take your 100k and go again for 5 years and you’ll be a millionaire in no time

realdanbreen

mloc123 wrote: »

realdanbreen wrote: »

Absolutely, and the gas thing is that most fellas I know who are making repayments on 182 SUV's spend the week nights with the car parked up and watching the chase or catchphrase while I'm down at the local with the 00 passat parked outside!

And getting a taxi home after I hope?

Sure you would never meet a guard around my neck of the woods.

Toyotafanboi

I would Hazzard a guess that you know very little about cars.

That's me.

There are solid saloons (and hatches such as clio) with very high safety features.

Safety has come on at a rate of knots. Having drivers and passengers airbags isn't really "safety" anymore. Even small cars these days are crammed with additional safety equipment, stability control, EBD, lane departure assist, autonomous braking and so on, you won't get any of that in 15 year old Clio.

Reliability..just get your mechanic to check and service! Infact there can be less to go wrong with older less complicated designs.

There's arguably more to go wrong through the accumulated wear and tear. Sure engines are capable of running indefinitely now for the most part but years and tens of thousands of kilometers will put additional wear and tear on most components.

As for infotainment ..what exactly is the deal breaker there....? Must have wifi??

Infotainment is nice. I'm not pushed on WIFI myself, but Spotify is nice on a long journey, sat nav is nice if you drive for work. The idea of RTE1, RTE2 or a compact disc player isn't too appealing to most i'd say. Some of that actually feeds back into safety, things like voice control and HUD's etc actually mean you will spend less time taking your eyes off the road ahead. That's the whole thing for me really, the new car is often much more than a current reg.

lalababa

realdanbreen wrote: »

Sure you would never meet a guard around my neck of the woods.

I drink and drive too, but am always legal...ie under the .05 BAC limit. Happy days!

lalababa

Toyotafanboi wrote: »

That's me.



Safety has come on at a rate of knots. Having drivers and passengers airbags isn't really "safety" anymore. Even small cars these days are crammed with additional safety equipment, stability control, EBD, lane departure assist, autonomous braking and so on, you won't get any of that in 15 year old Clio.



There's arguably more to go wrong through the accumulated wear and tear. Sure engines are capable of running indefinitely now for the most part but years and tens of thousands of kilometers will put additional wear and tear on most components.



Infotainment is nice. I'm not pushed on WIFI myself, but Spotify is nice on a long journey, sat nav is nice if you drive for work. The idea of RTE1, RTE2 or a compact disc player isn't too appealing to most i'd say. Some of that actually feeds back into safety, things like voice control and HUD's etc actually mean you will spend less time taking your eyes off the road ahead. That's the whole thing for me really, the new car is often much more than a current reg.

I personally try my darndest not to crash, that would be the most important thing for me when driving, moreso than infotainment even! If I were you now, I'd pcp meself an armoured Humvee with a disco ball hanging from the interior light.

BarryD2

realdanbreen wrote: »

Anyone forking out more than four or five K for a car is going to be the type that logs into instagram or Facebook to show that they are having a meal out! Most cars nowadays will do 400k no bother so why would you spend 20k for a newer number plate.

400K no bother?? I've had cars between 120-150,000 genuine miles, say around 200,000 km and they're starting to develop all sorts of little & bigger issues. Engine may be grand but other wearing parts are getting a bit knackered. Comes a point where it's better just to scrap and go again rather than throwing good money after bad.

Maybe if you only go on motorways and main roads and park it indoors, you get more but sadly not my experience.

Toyotafanboi

lalababa wrote: »

I personally try my darndest not to crash, that would be the most important thing for me when driving, moreso than infotainment even! If I were you now, I'd pcp meself an armoured Humvee with a disco ball hanging from the interior light.

That's a rock solid argument you have there.

lawred2

iamtony wrote: »

The average monthly car payment in the US is $500 dollars a month over 5 years(30,000).
I can't remember the exact figures I heard but that amount invested wisely over 5 years turns into over 100,000. Then you buy your car and put the 70k off your mortgage or whatever.
And a mortgage is very different to a car loan, personal losn or spending money on a credit card.

bullsh!t I'm afraid

If making money was that easy sure we'd all be millionaires

iamtony

ChuckLarry wrote: »

While there is some good long term investment opportunities out there at the moment I highly doubt there is any offering over 3 times your initial investement to be honest haha

If making money was that easy sure we’d all be loaded

https://www.daveramsey.com/blog/the-truth-about-car-payments

Sorry it's 10 years read through that, it gives the figures but also some good ideas on saving the average car payment and trading up from your bangernomics car you started with.

simongurnick

Here's my two cents for what it's worth:

For years I hated the idea of carrying any loans of any kind. For cars, I always bought cheap, mainly tried to pay in full and got lucky with a couple of old but reliable motors. But, over time, I ended having to fix all sorts of ****e on these cars and paid out cash every time.
Also, as the years went by and I had kids, safety became more important. I bought one van for 2 grand cash and the thing rolled down the drive way. All I could think was what if that rolled on one of the young ones...so I said, fcuk it, I'm going brand new.
So I had to the dealership ( I live in Canada now, so might be a little different to Ireland, but probably not much). Starting chatting to the sales guy who looked like he was nearing retirement so felt a bit more trustworthy. I told him my situation and he basically gave me his own advice. The guy buys a brand new vehicle and also purchases the 5 year extra warranty.He gets a 7 year finance term to keep the monthly payment low. Then after about 4 years or so, you should reach parity where the value of loan is equal to the value of the vehicle, so you trade it in for another new one and keep the cycle going.
Pro's: you always have a car that is at least 4 years old and it is fully covered for any breakages etc.
Con: you've always got that loan, but if you can afford the monthly, then essentially it's a living expense like your mortgage and you always have the comfort of new wheels.

I'm on to my second new one and am paying 500 a month and it works well.

Not saying that's what you should do, but it is an option.

Toyotafanboi

You've basically described PCP :pac:

As you say though, there's arguments for and against it.

simongurnick

Toyotafanboi wrote: »

You've basically described PCP :pac:

As you say though, there's arguments for and against it.

That's funny. Wasn't sure what that stood for.

PaulKK

Mike9832 wrote: »

0% is only on models they have trouble selling

The Octavia has been available at 0% for 3 or 4 years and they have no bother selling those.

iamtony

PaulKK wrote: »

The Octavia has been available at 0% for 3 or 4 years and they have no bother selling those.

im pretty sure there's a con to 0% finance. I'd guess it's built into the car and you'd get a better price if youd paid cash?

Squidgy Black

iamtony wrote: »

im pretty sure there's a con to 0% finance. I'd guess it's built into the car and you'd get a better price if youd paid cash?

You'll generally get a better price if you paid in cash regardless, doesn't matter what the finance rate is most of the time.