Buying my first car in Ireland

KJK1LL3R

Good afternoon,

I have just moved from Northern Ireland to the Irish midlands and need some advice about buying my first car in the Republic of Ireland. I am 32yrs old and currently driving a 2 litre Diesel Skoda Octavia but it was on a 3yr lease so I will be handing it back into the original NI dealer in mid February. Therefore I need to get sorted with a car in the next 4 or 5 weeks although I'm told late January can sometimes be an opportune time to negotiate with dealers. I am currently living with my girlfriends parents but will soon need to either rent or buy a house within the next 6-18 months so probably can't afford to buy a brand new car as the monthly repayments would maybe hurt my future mortgage prospects. I've been told that taking a car loan can impact the success of mortgage applications so that would be my concern. Another factor which is going against me is that as I have only just moved to the South in November, I have no credit history here as apparently my good credit rating from Northern Ireland doesn't carry across when moving to another country so may not even stand any chance of being accepted for a car loan/finance application. I've applied for a credit card with my bank but they will not grant it to me until March as I will need to have worked here in the South for at least 3 months before I am eligible for a credit card. It's looking like I may have no other option than to try to pay for a car outright.

I have a gross annual salary of €35k and between the bank and credit union I've got about €20-25k in savings, but I'm fully aware that a good chunk of that may soon be needed for a house deposit in the not too distant future so can probably only really afford a car budget in the region of €5-10k particularly as most car budgeting articles that I've read have recommended spending no more than 20% of annual wages on car costs. I don't know if I am better off buying outright or paying through finance installments, but do know that I intend to try to buy from a local dealership if at all possible as opposed to purchasing a car from a private seller. I have always leased cars in Northern Ireland so this would actually be my first time to purchase a car as opposed to leasing. Therefore I really don't have much of a clue about these things so would need some advice.

In terms of driving habits, I would be based around Mullingar direction and working in Portlaoise plus once covid restrictions ease I intend to visit home up in County Derry at least one weekend per month so my yearly mileage is probably going to be at least 25,000km. I'm guessing this means that I'd need to go with a Diesel but hopefully you can advise me on that. I would also need some help with knowing what kind of mileage is too high when buying a used car as I honestly wouldn't have a clue. I've read somewhere that if I am buying a used Diesel it should be no older than 2016 in order to keep motor tax lower due to emissions improvements in all post-2015 models.

I am a very low maintenance person, so would basically be looking for a reliable car that would last for a very long time as I don't want to have to buy another one again for a considerable period of time. I'd even go for a silver colour purely for the low maintenance as it hides dirt better so that should give some kind of indication as to how much I prefer things as hassle-free as possible. lol. My car needs to be low tax, low insurance, practical and economical in terms of MPG. I'm not massively into cars as such so I just want something with a low total cost of ownership, but when researching TCO's online it only tends to apply to buying new cars as opposed to used cars. I don't mind downsizing from the Skoda Octavia although admittedly I will miss the excellent boot space but would prefer something with lower running costs. I was thinking something like a Honda Civic might be a good choice but I've found that it's very difficult to find a used 2016+ Diesel for less than €15k plus these cars might actually be quite higher insurance groups than I'd have in mind. I had also thought maybe something like a Hyundai i30 or Kia Ceed but I'm not sure about their long-term reliability compared to Japanese car manufacturers. I do also like the more practical small almost mini MPV type cars like the Honda Jazz but they tend to be only available in petrol engines so wouldn't be economical enough for the amount of mileage I tend to cover. I was thinking perhaps a 1.4 diesel Toyota Auris from 2015 onwards might be the most sensible since it should be strong on reliability, economically high MPG, lower tax due to meeting Euro6 emissions standards, and also I'm guessing it would be a fairly low insurance group as it's only a 1.4 litre engine.

As you can see, I'm not at all well versed in the car buying market so would really appreciate your assistance in helping me decide what the best course of action to take would be.

Kindest regards.

corks finest

KJK1LL3R wrote: »

Good afternoon,

I have just moved from Northern Ireland to the Irish midlands and need some advice about buying my first car in the Republic of Ireland. I am 32yrs old and currently driving a 2 litre Diesel Skoda Octavia but it was on a 3yr lease so I will be handing it back into the original NI dealer in mid February. Therefore I need to get sorted with a car in the next 4 or 5 weeks although I'm told late January can sometimes be an opportune time to negotiate with dealers. I am currently living with my girlfriends parents but will soon need to either rent or buy a house within the next 6-18 months so probably can't afford to buy a brand new car as the monthly repayments would maybe hurt my future mortgage prospects. I've been told that taking a car loan can impact the success of mortgage applications so that would be my concern. Another factor which is going against me is that as I have only just moved to the South in November, I have no credit history here as apparently my good credit rating from Northern Ireland doesn't carry across when moving to another country so may not even stand any chance of being accepted for a car loan/finance application. I've applied for a credit card with my bank but they will not grant it to me until March as I will need to have worked here in the South for at least 3 months before I am eligible for a credit card. It's looking like I may have no other option than to try to pay for a car outright.

I have a gross annual salary of €35k and between the bank and credit union I've got about €20-25k in savings, but I'm fully aware that a good chunk of that may soon be needed for a house deposit in the not too distant future so can probably only really afford a car budget in the region of €5-10k particularly as most car budgeting articles that I've read have recommended spending no more than 20% of annual wages on car costs. I don't know if I am better off buying outright or paying through finance installments, but do know that I intend to try to buy from a local dealership if at all possible as opposed to purchasing a car from a private seller. I have always leased cars in Northern Ireland so this would actually be my first time to purchase a car as opposed to leasing. Therefore I really don't have much of a clue about these things so would need some advice.

In terms of driving habits, I would be based around Mullingar direction and working in Portlaoise plus once covid restrictions ease I intend to visit home up in County Derry at least one weekend per month so my yearly mileage is probably going to be at least 25,000km. I'm guessing this means that I'd need to go with a Diesel but hopefully you can advise me on that. I would also need some help with knowing what kind of mileage is too high when buying a used car as I honestly wouldn't have a clue. I've read somewhere that if I am buying a used Diesel it should be no older than 2016 in order to keep motor tax lower due to emissions improvements in all post-2015 models.

I am a very low maintenance person, so would basically be looking for a reliable car that would last for a very long time as I don't want to have to buy another one again for a considerable period of time. I'd even go for a silver colour purely for the low maintenance as it hides dirt better so that should give some kind of indication as to how much I prefer things as hassle-free as possible. lol. My car needs to be low tax, low insurance, practical and economical in terms of MPG. I'm not massively into cars as such so I just want something with a low total cost of ownership, but when researching TCO's online it only tends to apply to buying new cars as opposed to used cars. I don't mind downsizing from the Skoda Octavia although admittedly I will miss the excellent boot space but would prefer something with lower running costs. I was thinking something like a Honda Civic might be a good choice but I've found that it's very difficult to find a used 2016+ Diesel for less than €15k plus these cars might actually be quite higher insurance groups than I'd have in mind. I had also thought maybe something like a Hyundai i30 or Kia Ceed but I'm not sure about their long-term reliability compared to Japanese car manufacturers. I do also like the more practical small almost mini MPV type cars like the Honda Jazz but they tend to be only available in petrol engines so wouldn't be economical enough for the amount of mileage I tend to cover. I was thinking perhaps a 1.4 diesel Toyota Auris from 2015 onwards might be the most sensible since it should be strong on reliability, economically high MPG, lower tax due to meeting Euro6 emissions standards, and also I'm guessing it would be a fairly low insurance group as it's only a 1.4 litre engine.

As you can see, I'm not at all well versed in the car buying market so would really appreciate your assistance in helping me decide what the best course of action to take would be.

Kindest regards.

I'd look at an imported jap hybrid tbh, Declan Gill out in Santry is a decent honest dealer who imports low mileage high spec clean jap cars, with a decent warranty
I used travel up n down to Derry from Cork for 30 years so understand the need for a dependable fairly frugal car

TheBoyConor

why don't you just keep the car you have? It is relatively new. If you are looking to buy a house on that salary then haemorrhaging money on cars really ought to be the last thing on your to do list.
Could you look at getting an older car around the €5-7k bracket? The cars with the Renault 1.5dci engine are very economical and realisable.

Detritus70

What license do you hold? Did you ever have a car insured in the republic? Lack of no claims in Ireland can drive your insurance rate to insane heights, make sure you check that out and talk to your current insurance about transfering no claims.

corks finest

Detritus70 wrote: »

What license do you hold? Did you ever have a car insured in the republic? Lack of no claims in Ireland can drive your insurance rate to insane heights, make sure you check that out and talk to your current insurance about transfering no claims.

Licence doesen't matter as I swopped my Northern one over for a free state one no sweat

Detritus70

corks finest wrote: »

Licence doesen't matter as I swopped my Northern one over for a free state one no sweat

I was thinking of the OP.
I know that non Irish licenses and no no claims can get insanely expensive.

B-D-P--

Just FYI,

Ireland has a huge habbit of buying what we call "Paddy Spec"
We dont do optional extras.

If your coming from north and have a well spec'd car like most are from north, I think you can VRT for free as your moving over the border and I highly advise doing that & selling your car private here, You will get a lot more bang for your buck. Just check Donedeal.ie for what similiar specs are going for here compared to your dealer.


Hope this post helps & all the best

User1998

If you sell your car within a year you have to pay the VRT owed to Revenue

TheBoyConor

I think just keep the car and get it VRTed here. Car is only 4 years old, plenty reliable life left in it. After spending the money on it, might as well sweat the asset to the maximum extent possible.

KJK1LL3R

Thanks for all the responses guys, unfortunately I cannot keep my current 2018 Skoda Octavia vRS 2.0 diesel as it was my disabled fathers Motability lease from up North and it would cost a fortune to buy outright. I'm only currently driving it as a bit of an emergency short-term solution until I can buy my own car down here in the South having only just moved down at Christmas.

I have been a named driver on Motability cars for the last few years so hopefully I'd be able to transfer my no-claims bonus. I have already transferred my NI licence for an Irish driving licence, it hasn't arrived yet but NDLS have given me my driver number.

I still have my NI current account so perhaps I should consider buying from a dealer in one of the border counties who might take my good NI credit history into account. But again I'm guessing it probably isn't wise to have car finance instalments when I may soon need a mortgage. Or if I took a car loan from the Credit Union, would that still impact me in future if I applied a mortgage from my bank (KBC) instead?

KJK1LL3R

TheBoyConor wrote: »

Could you look at getting an older car around the €5-7k bracket? The cars with the Renault 1.5dci engine are very economical and realisable.

I had thought of that, particularly the Dacia Sandero which I believe uses the same Renault 1.5dci engine that you are referring to and by all accounts is the most affordable car in Europe. But much to my surprise, even a basic car like the Sandero is far more expensive down here compared to up North despite shopping for used models.

TheBoyConor

Good news! It's the Dacia Sandero.

Yes, I was looking at Dacias too and I am surprised that there are still quite expensive second hand. I had been hoping over the past few years that Dacias, being a new and relatively unknown no-frills economy brand, would have their value plummet after a few years and I could pick up a nice little basic no-nonsense reliable cheap to run car for cheap money. But it is not the case. There are 4 and 5 year old Dacias still with asking prices over €10k. Crazr, no way would I pay that money for any car. Looks like they are holding their value on account of them having some sort of following here amongst the paddy spec enthusiasts who just want a cheap A to B runabout with no interest in gadgets or deisgner brand names.

Could you buy a dacia up north and then just bring it down and VRT it and keep it?

KJK1LL3R

I might look into importing a Dacia Sandero 1.5dci from NI or something with similar low running costs such as a Peugeot 208 1.6 BlueHDI or a Renault Clio 1.5dci.

I'm just frustrated because I'm chucking money at these kinds of small supermini type cars as short-term fixes, whilst ideally I'd rather be investing long-term a slightly larger practical future-proof car that will last for at least the next 5-10yrs as I may very well be married with children by then. I don't really want to have to buy a car every 2-3 years but might not have any other choice here.

TheBoyConor

Do not buy a 208. They are useless. A friend had one and it broke her heart with stupid stuff always being wrong with it and breakdowns.

She got a Clio which has been much better.

KJK1LL3R

corks finest wrote: »

I'd look at an imported jap hybrid tbh, Declan Gill out in Santry is a decent honest dealer who imports low mileage high spec clean jap cars, with a decent warranty
I used travel up n down to Derry from Cork for 30 years so understand the need for a dependable fairly frugal car

Do you think a Hybrid would be suitable for such long drives up and down to/from Derry? In the short period of time that I have been living in the Irish midlands, I have noticed a massive amount of Toyota Hybrids on the roads compared to up in NI so it would appear people have embraced it more. It would interest me, I don't do a whole lot of motorway driving on 'M' roads but at the same time very rarely city driving either. Mostly I do a mix of main 'N' roads (N80, N52, etc.) and rural roads through towns and villages. I'd just be concerned that a Hybrid would be a bit of waste for me since I tend to do higher average mileage of 15-20k per year. What is the general consensus on Hybrids? I do like the fact that they are reliable and lower maintenance.

KJK1LL3R

KJK1LL3R wrote: »

Do you think a Hybrid would be suitable for such long drives up and down to/from Derry? In the short period of time that I have been living in the Irish midlands, I have noticed a massive amount of Toyota Hybrids on the roads compared to up in NI so it would appear people have embraced it more. It would interest me, I don't do a whole lot of motorway driving on 'M' roads but at the same time very rarely city driving either. Mostly I do a mix of main 'N' roads (N80, N52, etc.) and rural roads through towns and villages. I'd just be concerned that a Hybrid would be a bit of waste for me since I tend to do higher average mileage of 15-20k per year. What is the general consensus on Hybrids? I do like the fact that they are reliable and lower maintenance.

Again guys I would ask this question if anyone can assist? I noticed lots of Honda & Toyota Japanese Hybrids imports for sale from dealers, my girlfriend also needs a car so I'm thinking perhaps there is potential to get a good discount if buying two cars at the same time? Was thinking I could maybe get two Honda Jazz cars, assuming a Honda Fit is the same as a Honda Jazz? My concern though is that I've heard that it can be difficult to source parts for Japanese imports when it comes to repairs, and that they can be more expensive to insure?

KJK1LL3R

Having read this article (https://www.creditunion.ie/blog/5-key-questions-for-car-buyers-in-2021/) I'm starting to think it might make financial sense to buy a lower mileage 3 or 4 year old used KIA Ceed as it would have depreciated quite a bit by then yet still have 3 or 4 years of warranty remaining due to the KIA 7-year warranty. Then I could keep it for 3-4 years and trade it in for another 3-4 year old used KIA and continue that cycle of always buying used KIA's with 3-4yr warranty remaining for constant peace of mind. What do you guys think of that idea? I suppose the same thinking could apply to buying a 2-3 year old Hyundai i30 although they tend to bit a little more expensive. I'm just not sure though as maybe dealerships tend to offer low trade-in values compared to a private sale? Perhaps I would need to trade the car in when there is still some of the warranty remaining in order to get a better price for it? My other plan is to possibly just buy a cheap higher mileage Toyota Auris or Honda Civic and drive it till it's done as I've heard they are very reliable. Just thought it could be interesting to hear your thoughts and get some feedback on this.