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

14-04-2019 09:43PM #1

Since my pay has increased nearly 50% over the last couple of years I thought I would buy a car that's not a thirsty, gutless and uncomfortable. I thought it would be nice to get something that had a bit of power, didn't cripple me on long journeys, and could play a podcast from USB without having wires all over the cabin leading into a homemade aux port in the glovebox.

But if I get something that meets those requirements, isn't ten years old, and doesn't have over 100,000 miles on it, I'd need about €15,000. How does anyone save that kind of money every few years working in a regular job? Do most people spread it out using finance? Even if I got finance, I would have to pay nearly €100 a week and over €2,000 in interest, and that's more than my pay can stand.

This is a serious inquiry. How does this work for most people? How do they lay their hands on new or new-ish cars? Are they all selling drugs on the side?

Cantona's Collars · 14-04-2019 09:44PM

PCP has allowed so many to get into new cars.

SCOOP 64 · 14-04-2019 09:45PM

Most doing PCP.

Johnnyhpipe · 14-04-2019 09:47PM

I’m driving 15 years or more and have never not had a car loan ha ging over my head

Gael23 · 14-04-2019 09:49PM

Credit union loan or PCP for a lot of pwoole

scwazrh · 14-04-2019 09:49PM

As we learned from the last recession everything nice in this country is on finance even if you can’t afford the finance

_Brian · 14-04-2019 09:49PM

Always harder the first time.

Then in three years you should have something worth a trade, maybe €5-6k and your only borrowing €9-10k next time.

Motoring is horrendously expensive.

Red Lightning · 14-04-2019 09:52PM

I'm in the exact same boat. Currently driving a 1.0 Nissan Pixo (not many others have heard of it either) and would love something stronger, more comfortable and has some decent specs. But as the OP says ya nearly need â‚¬15,000 at least. I'm 25 and have nothing saved.

Eric Cartman · 14-04-2019 10:00PM

https://www.donedeal.ie/cars-for-sale/mercedes-benz-e-class-2-1-e-200-cdi-be-avantgarde/21566824

2010, cheap tax, pretty efficient, 80k miles and they can be found with 300k miles on them easily as theyre built to be taxis

put down 2k in the credit union and repay just under 200 a month, no balloon payments or any other craic and its a decent car with reasonable running costs.

con___manx1 · 14-04-2019 10:02PM

MontgomeryClift wrote: »

Since my pay has increased nearly 50% over the last couple of years I thought I would buy a car that's not a thirsty, gutless and uncomfortable. I thought it would be nice to get something that had a bit of power, didn't cripple me on long journeys, and could play a podcast from USB without having wires all over the cabin leading into a homemade aux port in the glovebox.

But if I get something that meets those requirements, isn't ten years old, and doesn't have over 100,000 miles on it, I'd need about €15,000. How does anyone save that kind of money every few years working in a regular job? Do most people spread it out using finance? Even if I got finance, I would have to pay nearly €100 a week and over €2,000 in interest, and that's more than my pay can stand.

This is a serious inquiry. How does this work for most people? How do they lay their hands on new or new-ish cars? Are they all selling drugs on the side?

If you buy a car privately or go up north you can save yourself a grand or two at least. I have an audi a3 black addition. its 6 years old with only 85000 k on the clock when i bought it.
I bought it private and saved at least 1000 euro on it. Warranty only lasts 6 months in most garages. I have the car a year now and not a bother.i Paid under 12 for it. Took a loan of 5k and pay 200 a month so not to bad.

Shefwedfan · 14-04-2019 10:12PM

Most car can do 300k miles with proper maintenance/servicing.....

owning and maintaining a car is not cheap. Hence why companies like GoCar etc are starting up and been successful. You buy what meets your budget. Start at the bottom and work out....

Very few people buy an expensive car first up....

artanevilla · 14-04-2019 10:13PM

Expensive does not equal decent.

ednwireland · 14-04-2019 10:22PM

Paid 8k for a 131 kia ceed sw not the greatest car I admit but has steering wheel controls, led drls. Bluetooth, USB and aux inputs 2 12v sockets in the front one on the boot, refrigerated glove box,cornering lights. speed limiter, cruise control, folding wing mirrors, puddle lights.
So ticked most of the boxes but it does have 105k miles on it but drives like a newer car.
Let someone else take the depreciation but I say.

ShadowHearth · 14-04-2019 11:05PM

scwazrh wrote: »

As we learned from the last recession everything nice in this country is on finance even if you can’t afford the finance

Finance by it self is not evil, it's people who don't understand it are idiots, and make it look evil.

I have no problem financing cars. I do my research, do maths if I can afford it and make sure I have savings reserved. I much prefer spending banks money then my own. If it's low apr or Zero, then it's even better.
New/newish cars are a luxury items and you decide yourself how much you willing to pay for that luxury. I drive 120km 4-6 days a week. Buying ****ty Micra would be the cheapest option. On the other hand I spend 2h in car each day, so might as well spend extra money on something nice.
15k can buy you a nice car. Even 10k can buy you a nice car. A lot of people financing it. For every 100 people who do their research before buying car on finance and happy out in the end, there will be one lialia, who will just sign a document and only then realise that he can't afford. Everyone's fault, but not his.

16-04-2019 09:06PM

Thanks for the replies. I've looked at PCP it makes sense in a way, but only if I'm prepared to think of the monthly repayments as rent on the car that will never be mine or if I'm prepared to continue the scheme and update the car every few years. I couldn't imagine paying the minimum value all at once come the end of the term.

If I buy a decent 2013 car for €15,000 and keep it for seven years until it's 13 years old and worth practically nothing, as I work it out the weekly depreciation will be less than €50 per week, albeit with higher maintenance costs because the car is older. That's cheaper than a PCP repayment of, let's say, €80 per week, but I have to have €15,000 and be in a position to spend it all at once on a car. If I can get over the desire to own a car outright I can see the sense in PCP, just looking at the numbers.

Shefwedfan · 16-04-2019 09:29PM

MontgomeryClift wrote: »

Thanks for the replies. I've looked at PCP it makes sense in a way, but only if I'm prepared to think of the monthly repayments as rent on the car that will never be mine or if I'm prepared to continue the scheme and update the car every few years. I couldn't imagine paying the minimum value all at once come the end of the term.

If I buy a decent 2013 car for €15,000 and keep it for seven years until it's 13 years old and worth practically nothing, as I work it out the weekly depreciation will be less than €50 per week, albeit with higher maintenance costs because the car is older. That's cheaper than a PCP repayment of, let's say, €80 per week, but I have to have €15,000 and be in a position to spend it all at once on a car. If I can get over the desire to own a car outright I can see the sense in PCP, just looking at the numbers.

If paying 15k of course the option could be electric.Fuel/tax/insurance/maintenance costs are a lot lower to combustion engine. This will help pay off the car quicker.It does depend on your requirements if it will suit you or not

I bought mine and depreciation is minimal so far, that of course is going to increase as more cars become available.

mloc123 · 16-04-2019 09:40PM

PCP is not some magic trick... it is another way of spreading the finance on a car over a number of years, it is probably best viewed as a lease if you do not intend to buy the car out at the end.

On the topic in general on how people afford cards, average industrial wage is now ~46k which is about 2900/month net. So your original example of 100e a week or 425e a month is a little less than 15% of that.

Mike9832 · 16-04-2019 09:42PM

If you can't pay cash for it, you can't afford it/ your spending too much money on it imo

kevthegaff · 16-04-2019 09:46PM

I had a avensis 2 litre for 3 years bought for 5000 euros, seriously reliable but at the end battery needed changing, nct was up, 750 tax, and needed family car for bigger family, only depreciated 1500 a year.. as I got 500 for it. Bought a 16 galaxy under a loan for 4.2% over 5 years for 20k. Tax is 280, car has 90k on clock, 6 month warranty and 2 yrs nct. Their value hold very well and I suspect it will depreciate around 2-3k a year with lower tax and hopefully running costs and more comfort and space

mloc123 · 16-04-2019 09:48PM

Mike9832 wrote: »

If you can't pay cash for it, you can't afford it/ your spending too much money on it imo

What about about a scenario where you can use a 0% PCP deal?

You have 30k in cash, pay down 3k to cover the 10%.. make monthly payments for 3 years@0% while your 27k earns interest elsewhere. You then pay the remaining lump sum at the end.

Total cost of credit is zero, while you have earned interest on your savings.

janfebmar · 16-04-2019 09:54PM

MontgomeryClift wrote: »

Since my pay has increased nearly 50% over the last couple of years I thought I would buy a car that's not a thirsty, gutless and uncomfortable. I thought it would be nice to get something that had a bit of power, didn't cripple me on long journeys, and could play a podcast from USB without having wires all over the cabin leading into a homemade aux port in the glovebox.

But if I get something that meets those requirements, isn't ten years old, and doesn't have over 100,000 miles on it, I'd need about €15,000. How does anyone save that kind of money every few years working in a regular job? Do most people spread it out using finance? Even if I got finance, I would have to pay nearly €100 a week and over €2,000 in interest, and that's more than my pay can stand.

This is a serious inquiry. How does this work for most people?

Most people in the world do not have to pay the rip off car prices due to high taxation here in this country. I always thought the EU / EEC was to be a "common market".

Idbatterim · 16-04-2019 10:03PM

at your budget , youd get an a7 I think...

ticks all of your boxes. Many people lose a fortune running cars, cars that are **** for the most part. If Im going to be losing quite a bit, Ill do it in a car that you can justify it in!

Depreciation is the biggest killer they overlook! the difference between the E190 and E280 could actually be a deciding factor for them. Forget about total cost of ownership or any of that nonsese :rolleyes:

PaulKK · 16-04-2019 10:27PM

MontgomeryClift wrote: »

Thanks for the replies. I've looked at PCP it makes sense in a way, but only if I'm prepared to think of the monthly repayments as rent on the car that will never be mine or if I'm prepared to continue the scheme and update the car every few years. I couldn't imagine paying the minimum value all at once come the end of the term.

You could always finance the minimum value after 3 years and keep the car. It will only be 3 years old and you should end up with a 6 year old car that you own outright and owned by you from new. VW bank have very reasonable finance rates for example.

Plus if you get 0% initially you only end up paying interest on the minimum value and not the entire car value.

Mike9832 · 16-04-2019 10:35PM

mloc123 wrote: »

What about about a scenario where you can use a 0% PCP deal?

You have 30k in cash, pay down 3k to cover the 10%.. make monthly payments for 3 years@0% while your 27k earns interest elsewhere. You then pay the remaining lump sum at the end.

Total cost of credit is zero, while you have earned interest on your savings.

If you can easily afford it of course

It's always cheaper with cash though

0% is only on models they have trouble selling

No meaningful interest on savings now, you have to invest

pinktoe · 16-04-2019 10:46PM

MontgomeryClift wrote: »

This is a serious inquiry. How does this work for most people? How do they lay their hands on new or new-ish cars? Are they all selling drugs on the side?

Aahhh Irish mentality, if I can't afford it you must a criminal.

How much do you piss down the pub toilet? Would that not go a long way on buying a decent car for you?

Save up for six months and get a car loan based on what you can afford.
Forget PCP that's for people who think they are financially better off than they are.

Wheety · 16-04-2019 10:49PM

OP, you looking at petrol? I'm also looking at changing car. Would like from 2014 onwards. Most of the cars out there are diesel. As soon as I remove them, the numbers drop massively. I don't do the mileage for a diesel.

lawred2 · 16-04-2019 10:53PM

Eric Cartman wrote: »

https://www.donedeal.ie/cars-for-sale/mercedes-benz-e-class-2-1-e-200-cdi-be-avantgarde/21566824

2010, cheap tax, pretty efficient, 80k miles and they can be found with 300k miles on them easily as theyre built to be taxis

put down 2k in the credit union and repay just under 200 a month, no balloon payments or any other craic and its a decent car with reasonable running costs.

Jesus I want that..

Shefwedfan · 16-04-2019 10:59PM

OSI wrote: »

Yes, I hear they have awful trouble shifting those unheard of models like the Golf, Tiguan and Passat :rolleyes:

They offer 0% on those model because the next gen is coming out and they want to clear stock, you can grab a deal as long as you are aware that in a few months time a new model will be on market

This of course hits your resale value....so the 0% will be good if you plan to buy the car but if you want to continue on PCP you need to check how it will affect you

Mike9832 · 16-04-2019 11:00PM

OSI wrote: »

Yes, I hear they have awful trouble shifting those unheard of models like the Golf, Tiguan and Passat :rolleyes:

Try it on a decent one

Shefwedfan · 16-04-2019 11:02PM

Eric Cartman wrote: »

https://www.donedeal.ie/cars-for-sale/mercedes-benz-e-class-2-1-e-200-cdi-be-avantgarde/21566824

2010, cheap tax, pretty efficient, 80k miles and they can be found with 300k miles on them easily as theyre built to be taxis

put down 2k in the credit union and repay just under 200 a month, no balloon payments or any other craic and its a decent car with reasonable running costs.

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

Shefwedfan · 16-04-2019 11:09PM

OSI wrote: »

Bull****. They've been doing it 3 years plus and I've already rolled over a PCP contract at near zero cost to me. Both on 40k+ cars.

Little aggressive?

So tell me which car they offered 0% on after they released it?

You do realise VW make money out of PCP? 0% or not?

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

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