Are most of these new cars you see in estates bought with finance?

CertifiedSimp

Typical urban estate, lots of middle couples early 40's with young kids and 2018/19/20 SUVs/Cars. Are most of these bought on finance/PCP?

ronnie3585

Yes.

ELM327

Absolutely.
And they are not bought on pcp they are rented on PCP. Wait for it all to go tits up.

Mantis Toboggan

ELM327 wrote: »

Absolutely.
And they are not bought on pcp they are rented on PCP. Wait for it all to go tits up.

How long have to wait?

I've been hearing this one for at least 7 years.

ELM327

Mantis Toboggan wrote: »

How long have to wait?

I've been hearing this one for at least 7 years.

Well, in the past 7 years there hasnt been a recession. So that would indicate that you need to wait a little longer.

anewme

Some will be bought on Finance and some will be bought another way. Or people who have no mortgage left might not mind a car loan.

People like to think that others live beyond their means (it makes them feel better about themselves for some reason) and owe everything out, but the reality is they don't.

Waiting and watching on others to fail is a poor trait and never adds anything to their own life.

unhappys10

The majority definitely are.
Neighbours of my parents in law have a 201 Audi Q7 and a 191 Land cruiser. She's an SNA in a school, so basically a teaching assistant. Not sure what your man does, but either he has an unreal job or they're up to their eyes in finance payments.

Idioteque

Different priorities/needs/wants.

Different income levels.

Paying by: Cash (Savings), PCP (avail of free credit and pay off baloon, roll on PCP, give car back (less likely), Credit Union, Bank Loan etc.

unhappys10

anewme wrote: »

Some will be bought on Finance and some will be bought another way. Or people who have no mortgage left might not mind a car loan.

People like to think that others live beyond their means (it makes them feel better about themselves for some reason) and owe everything out, but the reality is they don't.

I'd say the reality is most do.

Idioteque

unhappys10 wrote: »

The majority definitely are.
Neighbours of my parents in law have a 201 Audi Q7 and a 191 Land cruiser. She's an SNA in a school, so basically a teaching assistant. Not sure what your man does, but either he has an unreal job or they're up to their eyes in finance payments.

Or maybe they have a lot of WEALTH...

unhappys10

Idioteque wrote: »

Or maybe they have a lot of WEALTH...

Maybe they do or maybe they don't, I don't know and neither do you. Over 100k worth of cars sitting outside, a lot of people in this country have the likes of that on finance, more than the few who may have cash to buy etc

TheBoyConor

Nothing like a good aul dose of good old traditional Irish begrudgery to bring people who have nice things down a peg or two, for their own good for fear they'd get notions about themselves.

ELM327

Idioteque wrote: »

Or maybe they have a lot of WEALTH...

People with actual wealth are unlikely to be driving two SUVs.
It's hella likely they are both financed on PCP and awaiting the next downturn.

donnaille

I saw a stat somewhere that it's about 1 in 10 Irish cars purchased on PCP specifically - others will use different financial products (car loans, credit unions loans, HP etc.) while others will use savings. Stats often bundle PCP and HP together so it may not be easy to get an up to date figure.

Interested to understand the reasoning behind the question - any particular reason for the focus on PCP?

CrankyHaus

Is it true that PCP deals with 0% finance may be the best way to buy a car, cheaper than HP and without the opportunity cost of digging into savings?

unhappys10

TheBoyConor wrote: »

Nothing like a good aul dose of good old traditional Irish begrudgery to bring people who have nice things down a peg or two, for their own good for fear they'd get notions about themselves.

Absolutely nothing to do with begrudgery. I could have a new Q7 outside the door if I wanted to but I don't like PCP and there are other things I'd rather spend my money on.
If that's what they want to do then fire ahead, lovely car and good luck to them.

The discussion here is about how are they financed, and I'm saying the majority would be on finance not bought from savings etc.
No one in their right mind is going to save 70-80k+ and blow it on a Q7 or the like. They'd be as well of burning the money. They get them on finance.

quokula

There’s nothing wrong with PCP or other finance deals, some people think of it as living beyond your means, but in reality the payments are often comfortably within the buyers means. All you’re paying for with a car is depreciation, not the sticker price. A 50k car you sell for 30k actually cost you 20k. Finance is for people who can afford the 20k without having that 50k up front, and they pay a bit of interest for the privilege.

I’ve always bought second hand and for cash, but planning to go finance for my next car as the cost of ownership ends up not being radically different when you cover that new cars will have warranties, less to spend on repairs and maintenance, usually more fuel efficient etc

theteal

What's the story with car leasing in Ireland?
Very very popular over here

donnaille

unhappys10 wrote: »

The majority definitely are.
Neighbours of my parents in law have a 201 Audi Q7 and a 191 Land cruiser. She's an SNA in a school, so basically a teaching assistant. Not sure what your man does, but either he has an unreal job or they're up to their eyes in finance payments.

The scenarios for how they are in the position are endless - he may have a fantastically paid job, they may have gotten inheritance, they may live frugally in other areas of life, they may have won money etc.

Superfoods

unhappys10 wrote: »

The majority definitely are.
Neighbours of my parents in law have a 201 Audi Q7 and a 191 Land cruiser. She's an SNA in a school, so basically a teaching assistant. Not sure what your man does, but either he has an unreal job or they're up to their eyes in finance payments.

Each to their own. It is so Irish, first of all the randomness of the person you are talking about and then the "sure she is only a SNA so she can't afford"





If they are up to eyes in finance then let them worry about it.

Cyrus

Most new cars nowadays are financed , same in the U.K.

To be honest wrapping up 80/90k in a new car doesn’t make that much sense. Pcp or lease allows you to rent it basically and decide after 3 years what you want to do.

Not sure what all the doom about pcp is, worst that will happen in most cases is that you can’t refinance the car at the end and have no ‘equity’ left in it

Bangernonics thread is that way in that case >>

Cyrus

donnaille wrote: »

The scenarios for how they are in the position are endless - he may have a fantastically paid job, they may have gotten inheritance, they may live frugally in other areas of life, they may have won money etc.

People in fantastically paid jobs will still tend to finance new cars

Superfoods

donnaille wrote: »

The scenarios for how they are in the position are endless - he may have a fantastically paid job, they may have gotten inheritance, they may live frugally in other areas of life, they may have won money etc.

They could be dealing drugs :P



As you say hundreds of reasons. They could just like fancy cars and restrict all other spending for the pleasure of having them

unhappys10

Superfoods wrote: »

Each to their own. It is so Irish, first of all the randomness of the person you are talking about and then the "sure she is only a SNA so she can't afford"





If they are up to eyes in finance then let them worry about it.

Only an SNA is right. Teachers are poorly paid so I can only imagine an SNA salary. What's your point? How is it random, I gave an example relating to the post. Have a think before you reply.

Del2005

ELM327 wrote: »

Absolutely.
And they are not bought on pcp they are rented on PCP. Wait for it all to go tits up.

In the UK and USA they don't advertise the price of the car as no one buys cars there, its all about the monthly payments.

So PCP has been successful in the UK / USA and we've had it for nearly a decade, most PCP deals are 3 years, when will it go tits?

Treppen

Read an article before about some wan who just rented a car every day!! Zero maintenance NCT road tax, anything wrong and she just swaps it.

Cost a few grand a year but she said she'd be spending that on a car she owned anyway, also factoring in depreciation!!

What do ye think of that?

Cyrus

unhappys10 wrote: »

Only an SNA is right. Teachers are poorly paid so I can only imagine an SNA salary. What's your point? How is it random, I gave an example relating to the post. Have a think before you reply.

Well she obviously does it because she likes it or has a vocation, if she wasn’t working and staying at home the assumption would be that the husband is loaded

He probably is

unhappys10

Del2005 wrote: »

In the UK and USA they don't advertise the price of the car as no one buys cars there, its all about the monthly payments.

So PCP has been successful in the UK / USA and we've had it for nearly a decade, most PCP deals are 3 years, when will it go tits?

UK car financing is totally different to here.

Cyrus

unhappys10 wrote: »

UK car financing is totally different to here.

They have private leasing more prevalent but they also have pcp which is exactly the same , cheaper but the same .

unhappys10

Cyrus wrote: »

Well she obviously does it because she likes it or has a vocation, if she wasn’t working and staying at home the assumption would be that the husband is loaded

He probably is

Yeh I know, that's what I said, he either is loaded or its finance.
I don't get these idiots talking about begrudgery, the topic is whether all of these cars are on finance, I said they probably are.
An SNA isn't on fantastic money I would assume, so if only one decent income either he is on huge money or they financed it.

Cyrus

unhappys10 wrote: »

Yeh I know, that's what I said, he either is loaded or its finance.
I don't get these idiots talking about begrudgery, the topic is whether all of these cars are on finance, I said they probably are.
An SNA isn't on fantastic money I would assume, so if only one decent income either he is on huge money or they financed it.

The likelihood is that it’s both , he is earning a lot of money and they are financed . They aren’t mutually exclusive.

ELM327

Del2005 wrote: »

In the UK and USA they don't advertise the price of the car as no one buys cars there, its all about the monthly payments.

So PCP has been successful in the UK / USA and we've had it for nearly a decade, most PCP deals are 3 years, when will it go tits?

Contract hire is not the same as PCP.
In the US you can "hand back the keys" without penalty. Try doing that here!

donnaille

unhappys10 wrote: »

Yeh I know, that's what I said, he either is loaded or its finance.
I don't get these idiots talking about begrudgery, the topic is whether all of these cars are on finance, I said they probably are.
An SNA isn't on fantastic money I would assume, so if only one decent income either he is on huge money or they financed it.

Perhaps a few have misinterpreted the sentiment in your earlier post, I for one did, mainly due to the two scenarios you presented for how the couple could afford their two vehicles (well paid husband, or up to their eyes in finance payments). I've merely highlighted that there are multiple other scenarios - all just guesses.

maestroamado

unhappys10 wrote: »

The majority definitely are.
Neighbours of my parents in law have a 201 Audi Q7 and a 191 Land cruiser. She's an SNA in a school, so basically a teaching assistant. Not sure what your man does, but either he has an unreal job or they're up to their eyes in finance payments.

Was talking to friend last week who said.
Must have car now black Audi...

Dodge

donnaille wrote: »

Perhaps a few have misinterpreted the sentiment in your earlier post, I for one did, mainly due to the two scenarios you presented for how the couple could afford their two vehicles (well paid husband, or up to their eyes in finance payments). I've merely highlighted that there are multiple other scenarios - all just guesses.

And all none of anyone’s business...

CrankyHaus

unhappys10 wrote: »

Yeh I know, that's what I said, he either is loaded or its finance.
I don't get these idiots talking about begrudgery, the topic is whether all of these cars are on finance, I said they probably are.
An SNA isn't on fantastic money I would assume, so if only one decent income either he is on huge money or they financed it.

It wasn't so long ago that we were learned the pitfalls of enticing people into things they could not really afford.



Now, hardly more than a decade after, questioning it is "classic Irish begrudgery". Debt bubbles affect us all, as we've learned to our detriment.

Cyrus

ELM327 wrote: »

Contract hire is not the same as PCP.
In the US you can "hand back the keys" without penalty. Try doing that here!

Well you can just after 3 years the reality is how much exposure will someone have between the down payment they made, the value left in the car and any payments they made already

It’s not going to a fortune and is likely to be the least of their worries if they are that badly off .

8-10

CrankyHaus wrote: »

Is it true that PCP deals with 0% finance may be the best way to buy a car, cheaper than HP and without the opportunity cost of digging into savings?

When I went to buy a few years ago I looked at 3 options:

1. PCP
2. HP with the garage
3. Bank loan

The cheapest option was PCP, by a couple of hundred I think just on the payments.

Was a no brainer to go with PCP and delighted I did.

Lewis_Benson

unhappys10 wrote: »

The majority definitely are.
Neighbours of my parents in law have a 201 Audi Q7 and a 191 Land cruiser. She's an SNA in a school, so basically a teaching assistant. Not sure what your man does, but either he has an unreal job or they're up to their eyes in finance payments.

And I bet neither car has ever seen dirt road.

unhappys10

unhappys10 wrote: »

The majority definitely are.
Neighbours of my parents in law have a 201 Audi Q7 and a 191 Land cruiser. She's an SNA in a school, so basically a teaching assistant. Not sure what your man does, but either he has an unreal job or they're up to their eyes in finance payments.

unhappys10 wrote: »

.......
An SNA isn't on fantastic money I would assume, so if only one decent income either he is on huge money or they financed it.

You can rest assured there's a very healthy net income going into that house every month (or at least there was preCovid). The Landcruiser would suggest he's self employed IMO, they are generally either commercial or 5 seater N1 classified.

I reckon PCP on a Q7 would be €1200/month after paying the guts of a €10k deposit......... not the sort of purchase folk tend to go for unless they have a few quid / decent earning power.

As others have mentioned even if they have bucket loads of cash and/or there's a huge salary on one side, it's most likely still financed.

ZeroThreat

ELM327 wrote: »

Absolutely.
And they are not bought on pcp they are rented on PCP. Wait for it all to go tits up.

In a family company I worked for up until fairly recently, all the siblings had high spec BMWs paying a monthly lease charge (on 3 year contract) to a company called Merrion Fleet. Are PCPs just the equivalent of these lease company rentals for private individuals?

maestroamado

I seen women dropping kids to school in Land cruiser type vehicles, its called style.
I always though that there be a new class car+ license for these to keep women from driving them...

HBC08

unhappys10 wrote: »

The majority definitely are.
Neighbours of my parents in law have a 201 Audi Q7 and a 191 Land cruiser. She's an SNA in a school, so basically a teaching assistant. Not sure what your man does, but either he has an unreal job or they're up to their eyes in finance payments.

Maybe they are both great savers and have been all their lives,maybe they think the idea of travel or spending lots of holidays and home renovations is a waste of money and they love cars instead.They might have got an inheritance,they might have the cars on finance.
Whatever way it is you don't need to worry about it.

ZeroThreat

ZeroThreat wrote: »

In a family company I worked for up until fairly recently, all the siblings had high spec BMWs paying a monthly lease charge (on 3 year contract) to a company called Merrion Fleet. Are PCPs just the equivalent of these lease company rentals for private individuals?

Ish.

I imagine the payment to Merrion Fleet included tax and servicing.

But PCP is a personal contract plan, so effectively leasing for private individuals but you need to pay a deposit, 10% minimum.

HBC08

theteal wrote: »

What's the story with car leasing in Ireland?
Very very popular over here

I'd like to know this too.I looked into pcp recently but it wouldn't work for me.Id like to pay a monthly fee for my car,that's basically what I'm doing now as I got a CU car loan,I'd like to see other options.

bazz26

I notice the OP (a newly opened account) hasn't contributed anything to this thread other can start it to stir a bit of controversy, similar to their postings in other threads. Says it all really.

Pkiernan

maestroamado wrote: »

I always though that there be a new class car+ license for these to keep women from driving them...

???

TheBoyConor

I think it is madness to be spending that kind of money on cars, be it by PCP or a loan or otherwise.

I wouldn't dream of buying a new or nearly new car. I see it as pure waste.
I have always bought old cars that have proven reliability.

My current car is an 04 Nissan Almera I got for €900 6 years ago. Nearly 200k miles on it now. I did have the usual gearbox problem, but I was prepared for it by having a €100 spare gearbox in reserve for when it went.

It has been the most reliable, cheapest motoring I've had. You can have your PCP.
Granted, it is not a fancy flashy car but I do not care for such notions. To me it holds the same status as a dishwasher - an applicance to do a job.

Cyrus

TheBoyConor wrote: »

I think it is madness to be spending that kind of money on cars, be it by PCP or a loan or otherwise.

I wouldn't dream of buying a new or nearly new car. I see it as pure waste.
I have always bought old cars that have proven reliability.

My current car is an 04 Nissan Almera I got for €900 6 years ago. Nearly 200k miles on it now. I did have the usual gearbox problem, but I was prepared for it by having a €100 spare gearbox in reserve for when it went.

It has been the most reliable, cheapest motoring I've had. You can have your PCP.
Granted, it is not a fancy flashy car but I do not care for such notions. To me it holds the same status as a dishwasher - an applicance to do a job.

Good for you

I’d rather walk personally

Each to their own

unhappys10

HBC08 wrote: »

Maybe they are both great savers and have been all their lives,maybe they think the idea of travel or spending lots of holidays and home renovations is a waste of money and they love cars instead.They might have got an inheritance,they might have the cars on finance.
Whatever way it is you don't need to worry about it.

Not a bit worried about it. Giving an example relating to the topic at hand. You haven't a clue how they did it, no more than myself.

NIMAN

TheBoyConor wrote: »

I think it is madness to be spending that kind of money on cars, be it by PCP or a loan or otherwise.

I wouldn't dream of buying a new or nearly new car. I see it as pure waste.
I have always bought old cars that have proven reliability.

My current car is an 04 Nissan Almera I got for €900 6 years ago. Nearly 200k miles on it now. I did have the usual gearbox problem, but I was prepared for it by having a €100 spare gearbox in reserve for when it went.

It has been the most reliable, cheapest motoring I've had. You can have your PCP.
Granted, it is not a fancy flashy car but I do not care for such notions. To me it holds the same status as a dishwasher - an applicance to do a job.

Luckily not everyone shares your opinion, otherwise you would not have had a second hand car to buy.