How did you finance your new Tesla?

Jog501

https://www.boards.ie/discussion/comment/119853902#Comment_119853902

Ideally you would put that 50k to work through a mix of low/medium/high return investments and not buy any "asset" like a car that will depreciate. If still you really want that car and you could afford it with cash I think a low rate finance deal is better than dropping a large potion your life savings on said car.

unkel

What low risk investments have you made in the last couple of years that are now worth considerably more than say a year ago? Yeah. Me neither, everything has gone to sh1te. Except for my investments in renewable home improvements.

Mad_maxx

https://www.boards.ie/discussion/comment/119853902#Comment_119853902

Actually Irish people traditionally don’t buy with finance , in America nobody would ever dream of buying with cash and it’s been that way for more than fifty years, car finance is relatively new to Ireland in a big way

Jog501

https://www.boards.ie/discussion/comment/119854675#Comment_119854675

I de-risked to cash in late 2021 (thankfully given the year that has passed!) as I'm saving for our a new house. The last 8 years gave some fantastic returns though even with mixed risk portfolios, was never going to last forever but the high interest rate environment now will give a slightly better return on low risk investments. Which will all be eaten up by inflation unfortunately..

mickdw

This is very much a time to hold cash, not because it's making money right now but because the opportunity to make money is around the corner with recession and turmoil on the horizon.

When the arse has fallen out of everything, banks will only be giving out mortgages/funding to gold plated clients. If someone must buy a car right now, as long as they can afford it, I'd be thinking borrow and hold own cash even if it's doing nothing for you right now.

mickdw

https://www.boards.ie/discussion/comment/119854260#Comment_119854260

If you throw the same amount of cash at a hp deal to clear it near the end, it will be cheaper than the pcp at the same interest rate so your point is not valid.

it is clear, you fully believed that the balloon was not financed at all and was not incurring interest charges.

As I initially said, pcp on low interest is brilliant, anything else, not so great.

MojoMaker

Exactly.

PUP paid in bitcoin.

unkel

https://www.boards.ie/discussion/comment/119855292#Comment_119855292

Good points but if you think that will happen then you wouldn't be buying a €50k car now anyway, just make do with an old banger and then buy a €200k car in a few years time when all those opportunities have come good 😁

Mad_maxx

https://www.boards.ie/discussion/comment/119855677#Comment_119855677

Cars don’t drop in value like stocks or property, price of a house in Dublin could perhaps be 15% cheaper in two years, price of a new Tesla or other new car won’t be

mickdw

https://www.boards.ie/discussion/comment/119855677#Comment_119855677

Well yes but depending on circumstance, someone might be comfortable enough to borrow for the car. Price of cars is a whole other problem.... That's the biggest reason not to buy now, certainly in the used market.

Mad_maxx

Used market was nuts until about two months ago but has fallen back significantly, typical bubble

Jog501

I think there are going to be some very upset people trading in their over-priced 60 to 70k Id4/5's in 2 years time and they have f-all equity and paying thousands of interest. There is no value in the market now above the grant threshold for family EV's.

unkel

https://www.boards.ie/discussion/comment/119857528#Comment_119857528

You can include all the Tesla Model Y driving around in Ireland today. Cheapest you could get one was €73k. In white.

ELM327

Yes the LR AWD Y looks quite overpriced now. The P model is fine but not many would want the LR over the base now

mickdw

https://www.boards.ie/discussion/comment/119857417#Comment_119857417

I don't see much drop, perhaps alittle more stock but prices are still nuts as far as I can see.

Mad_maxx

https://www.boards.ie/discussion/comment/119858450#Comment_119858450

have you bought recently?

mickdw

Looking for bmw 530e circa 2019 2020 and don't see any drop.

330e also nuts. They actually look better value new now.

ELM327

Additionally with inflation at 8-10% you'd be mad to pay cash for a car. Take the finance at 4-5%, you're still paying negative interest in effect.

Put the cash into stocks for long term. Or Solar PV.

crisco10

https://www.boards.ie/discussion/comment/119860630#Comment_119860630

While I can see the argument for PV since that's tax free saving, the margins are slim when you account for paying tax on your investments gains....To "cover" the cost of finance, you need at least gross 8% gain to allow for whatever tax your investment attracts and have the net above the interest paid on the loan...

Also, a car loan would be a short term liability, where as stocks for the long term, are long term. You'd need to have the cashflow to bridge that gap too.

ELM327

Yes... of course... tax on shares... yeees. Everyone pays that in Ireland <<..<<

Mad_maxx

https://www.boards.ie/discussion/comment/119858956#Comment_119858956

I bought a car for herself a month ago, 2016 VW Jetta two litre automatic, awful dull and bland yoke but got if for 10k , probably because they were a model that didn’t sell well, dealer took 2 k less than advertised

yours is obviously an in demand car

Jjohnrockk

https://www.boards.ie/discussion/comment/119853340#Comment_119853340

Car would lose 10-20% moment it is out of showroom. 5K gone out of window on 50K after reg.

...Ghost...

https://www.boards.ie/discussion/comment/119955166#Comment_119955166

People don't seem to have any problem selling them months later at no loss and often at a profit.

ELM327

https://www.boards.ie/discussion/comment/119955166#Comment_119955166

This simply and categorically is not happening for EVs right now, in a supply constrained market.

unkel

My sister in law's Ioniq 5 is worth more now second hand than she paid for it almost a full year ago. There are dozens of examples like this.

But yeah if you are silly enough to buy a new diesel car in 2023, it will probably lose 30% of its value within a year. Maybe more.

TheWonderLlama

https://www.boards.ie/discussion/comment/119851601#Comment_119851601

I tried to correct a certain motoring "journalist" on this very point when he wrote an article about it. He incorrectly claimed you paid no interest on the balloon amount. When I pointed out his error, he blocked me. Article is still there, AFAIK.

unkel

https://www.boards.ie/discussion/comment/119959231#Comment_119959231

Any link to it?

And the people selling the finance probably understand it even less than that journalist. And the people buying the cars with finance, less again.

TheWonderLlama

https://www.irishtimes.com/life-and-style/motors/q-a-what-is-a-pcp-and-should-i-use-one-to-buy-a-car-1.4757229

innrain

https://www.boards.ie/discussion/comment/119959231#Comment_119959231

There is a particular case when he's right, ;) APR 0% although technically not correct. Seriously now it is scary to see the lack of financial ed from the whole team there.