How do people get brand new cars every year? How does it work?

arleitiss · 13-04-2015 09:04PM #1

Hey, out of curiosity - I've seen many people get brand new model of same car every year, I mean people who have average office jobs.

For example:
In 2011: Bob drives 7 series 2011
In 2012: Bob drives 7 series 2012
In 2013: Bob drives 7 series 2013

I assume bob doesn't shell out every year for brand new model?

Do official dealerships offer some kind of "upgrade" or something?

ucd.1985 · 13-04-2015 09:05PM

arleitiss wrote: »

Hey, out of curiosity - I've seen many people get brand new model of same car every year, I mean people who have average office jobs.

For example:
In 2011: Bob drives 7 series 2011
In 2012: Bob drives 7 series 2012
In 2013: Bob drives 7 series 2013

I assume bob doesn't shell out every year for brand new model?

Do official dealerships offer some kind of "upgrade" or something?

Might just lease it for one year.

arleitiss · 13-04-2015 09:07PM

ucd.1985 wrote: »

Might just lease it for one year.

Is leasing car like renting it?

mhackett102 · 13-04-2015 09:08PM

It usually only costs a few thousand euro (depending on the car) to change up a year every year. Also, you dont have the bother of NCT as you wont have the car for 4+ years, and maintenance costs are low as the car is new and will need minimum within its first 12 months.

Often of times, if the person continues dealing with the same dealership year after year then they are inclined to get it at a good price.

yosser hughes · 13-04-2015 09:11PM

ucd.1985 wrote: »

Might just lease it for one year.

I've often wondered about leasing. What are the advantages/disadvantages? What are the costs? Is there a tax benefit etc? I've often heard people say that a lot of people driving high end cars are leasing them.
I'd be interested to hear what people know about leasing cars.

*Kol* · 13-04-2015 09:11PM

Bob has tons of wedge and/or a really good company car deal if he is getting a 7 series every year. Benefit in kind on that makes my eyes water.

arleitiss · 13-04-2015 09:12PM

mhackett102 wrote: »

It usually only costs a few thousand euro (depending on the car) to change up a year every year. Also, you dont have the bother of NCT as you wont have the car for 4+ years, and maintenance costs are low as the car is new and will need minimum within its first 12 months.

Often of times, if the person continues dealing with the same dealership year after year then they are inclined to get it at a good price.

So it's a pretty decent thing to do if you have few thousand a year at your disposal instead of buying car in 2015 and then driving it till it dies?

Darraghmh91. · 13-04-2015 09:13PM

I always think when I see them with a new car every year it's a company car

My birds da works for Nissan and gets one every year brand new

*Kol* · 13-04-2015 09:14PM

arleitiss wrote: »

So it's a pretty decent thing to do if you have few thousand a year at your disposal instead of buying car in 2015 and then driving it till it dies?

If I had the few grand each year I would change cars if I could. Normally company cars are changed every few years tho.

colm_mcm · 13-04-2015 09:14PM

arleitiss wrote: »

So it's a pretty decent thing to do if you have few thousand a year at your disposal instead of buying car in 2015 and then driving it till it dies?

The first years depreciation is the highest. It's an expensive way to do it.

Occasionally you can get great deals on some models, and can do it cheap if you put in the legwork. There isn't really a case to be made ref tyres/servicing though.

166man · 13-04-2015 09:16PM

Often it works both ways, if you have a good rep with the dealer and he knows you'll chnage every X amount of months he knows he has an immaculate car coming into stock. He can then afford to offer a higher valuation thus incentivising you to change.

If you have the money work away, wouldn't be my cup of tae though!

Atlantic Dawn · 13-04-2015 09:19PM

On something like a 7 Series I would think the lease deal would have to be at least €20k (€1,666 a month) for year 1 for it to be worthwhile for the dealer as the depreciation hit would be insane. Cheapest 7 Series is €91.5k, car will be worth at best €50k in 3 years. For me to be spending €20k a year and to have no motor at the end of it is criminally insane but then again I don't have that kind of money to blow a month so who am I to judge.

mhackett102 · 13-04-2015 09:19PM

arleitiss wrote: »

So it's a pretty decent thing to do if you have few thousand a year at your disposal instead of buying car in 2015 and then driving it till it dies?

From what Ive been told, yes

If you actually think about it, it does seem to make sense. If you have a new car then you would get very minimum problems within its first 12 months, really the only thing you are paying for is fuel, insurance and tax. The average depreciation rate on a car is 10%. So if you buy a car at €20,000 , then that car has depreciated by €2,000 over twelve months. So then if you go for the same car the year after at the same price then you should only be paying €2,000 along with your trade in.

While if you buy a car and have it for 4 years - you are paying for fuel, tax, insurance, NCT, annual servicing, new set of tyres, probably a couple of internal and external damages, and after the 4 years then a new model of the car has probably come out so it has depreciated in value even more.

There are a lot of pro's and very little con's of doing this kind of method. A friend of mine gets a new Ford Mondeo every year and they dont seem to understand why people dont do it more often. And he isnt in a very high-up job!!

*This may sound very confusing, apoligies. It made sense whist I was typing it

arleitiss · 13-04-2015 09:23PM

mhackett102 wrote: »

From what Ive been told, yes

If you actually think about it, it does seem to make sense. If you have a new car then you would get very minimum problems within its first 12 months, really the only thing you are paying for is fuel, insurance and tax. The average depreciation rate on a car is 10%. So if you buy a car at €20,000 , then that car has depreciated by €2,000 over twelve months. So then if you go for the same car the year after at the same price then you should only be paying €2,000 along with your trade in.

While if you buy a car and have it for 4 years - you are paying for fuel, tax, insurance, NCT, annual servicing, new set of tyres, probably a couple of internal and external damages, and after the 4 years then a new model of the car has probably come out so it has depreciated in value even more.

There are a lot of pro's and very little con's of doing this kind of method. A friend of mine gets a new Ford Mondeo every year and they dont seem to understand why people dont do it more often. And he isnt in a very high-up job!!

*This may sound very confusing, apoligies. It made sense whist I was typing it

I thought cars lose value by 50% every year?
So:
Year 0: 120k
Year 1: 60k
Year 2: 30k
Year 3: 15k
Year 4: 7.5k

I've seen someone saying that here on boards

arleitiss · 13-04-2015 09:24PM

Atlantic Dawn wrote: »

On something like a 7 Series I would think the lease deal would have to be at least €20k (€1,666 a month) for year 1 for it to be worthwhile for the dealer as the depreciation hit would be insane. Cheapest 7 Series is €91.5k, car will be worth at best €50k in 3 years. For me to be spending €20k a year and to have no motor at the end of it is criminally insane but then again I don't have that kind of money to blow a month so who am I to judge.

Well yeah I guess worth or not depends on car itself.

mhackett102 · 13-04-2015 09:26PM

arleitiss wrote: »

I thought cars lose value by 50% every year?
So:
Year 0: 120k
Year 1: 60k
Year 2: 30k
Year 3: 15k
Year 4: 7.5k

I've seen someone saying that here on boards

All depends on what type of car.

The likes of a Ford Fiesta wouldnt depreciate by 50% (2015 at €20,000 , 2014 at €10,000 , 2013 at €5,000 , 2012 at €2,500 etc.)

But the likes of a much more expensive car would depreciate by something very close to 50%. (I wouldnt say 50% but would be close)

mickdw · 13-04-2015 09:29PM

50 percent every 3 years would be nearer to the mark for Most cars.

*Kol* · 13-04-2015 09:30PM

mhackett102 wrote: »

All depends on what type of car.

The likes of a Ford Fiesta wouldnt depreciate by 50% (2015 at €20,000 , 2014 at €10,000 , 2013 at €5,000 , 2012 at €2,500 etc.)

But the likes of a much more expensive car would depreciate by something very close to 50%. (I wouldnt say 50% but would be close)

That doesn't sound right at all. There is no 50% depreciation. In that case I would have paid €20k for my 1yo A4. Nice if you can get it

Edit. I don't think a fiesta drops by €10k in the first year either

colm_mcm · 13-04-2015 09:30PM

mhackett102 wrote: »

From what Ive been told, yes

If you actually think about it, it does seem to make sense. If you have a new car then you would get very minimum problems within its first 12 months, really the only thing you are paying for is fuel, insurance and tax. The average depreciation rate on a car is 10%. So if you buy a car at €20,000 , then that car has depreciated by €2,000 over twelve months. So then if you go for the same car the year after at the same price then you should only be paying €2,000 along with your trade in.

While if you buy a car and have it for 4 years - you are paying for fuel, tax, insurance, NCT, annual servicing, new set of tyres, probably a couple of internal and external damages, and after the 4 years then a new model of the car has probably come out so it has depreciated in value even more.

There are a lot of pro's and very little con's of doing this kind of method. A friend of mine gets a new Ford Mondeo every year and they dont seem to understand why people dont do it more often. And he isnt in a very high-up job!!

*This may sound very confusing, apoligies. It made sense whist I was typing it

2 grand on a 20 grand car? Nah.

Hachiko · 13-04-2015 09:30PM

arleitiss wrote: »

Hey, out of curiosity - I've seen many people get brand new model of same car every year, I mean people who have average office jobs.

For example:
In 2011: Bob drives 7 series 2011
In 2012: Bob drives 7 series 2012
In 2013: Bob drives 7 series 2013

I assume bob doesn't shell out every year for brand new model?

Do official dealerships offer some kind of "upgrade" or something?

almost all the time its bank money, i only buy what i can afford.

mickdw · 13-04-2015 09:31PM

arleitiss wrote: »

Hey, out of curiosity - I've seen many people get brand new model of same car every year, I mean people who have average office jobs.

For example:
In 2011: Bob drives 7 series 2011
In 2012: Bob drives 7 series 2012
In 2013: Bob drives 7 series 2013

I assume bob doesn't shell out every year for brand new model?

Do official dealerships offer some kind of "upgrade" or something?

I think bobs real name is pat Kenny and he gets his car free in exchange for turning up to a few launches and being a brand ambassador.

mhackett102 · 13-04-2015 09:33PM

*Kol* wrote: »

That doesn't sound right at all. There is no 50% depreciation. In that case I would have paid €20k for my 1yo A4. Nice if you can get it

Edit. I don't think a fiesta drops by €10k in the first year either

Just using as an example to prove that not all cars would depreciate by 50% yearly.

If you could get a 4 year old Fiesta for €2,500 then I think every Tom, Dick & Harry would have one

*Kol* · 13-04-2015 09:35PM

mhackett102 wrote: »

Just using as an example to prove that not all cars would depreciate by 50% yearly.

If you could get a 4 year old Fiesta for €2,500 then I think every Tom, Dick & Harry would have one

I would have one!!!

*Kol* · 13-04-2015 09:38PM

Hachiko wrote: »

almost all the time its bank money, i only buy what i can afford.

From my experience you should buy what the bank will give you. You will look back and say I am glad I did that (I hope)

mhackett102 · 13-04-2015 09:43PM

colm_mcm wrote: »

2 grand on a 20 grand car? Nah.

Two cars. Practically the exact same. One is 2015 and another is 2014. €1,405 of a difference in a selling price.

*Note: This was just based on a quick search done on carzone, I couldnt come across any garage which had two similar cars with only a year difference.

Bpmull · 13-04-2015 09:46PM

arleitiss wrote: »

I thought cars lose value by 50% every year?
So:
Year 0: 120k
Year 1: 60k
Year 2: 30k
Year 3: 15k
Year 4: 7.5k

I've seen someone saying that here on boards

That is way out as someone mentioned you'd be looking at it being worth at least 50% after 3 years. Someone offered to buy my parents octavia recently as the guy really liked the colour spec and wanted one and he offered them 70% of what they paid for it. It's 3.5 years old. Granted you wouldn't be that lucky with most cars. But your average 25k Euro popular diesel car your probably looking at 3-4k euro per year to get a new one.

For Forks Sake · 13-04-2015 09:52PM

Darraghmh91. wrote: »

I always think when I see them with a new car every year it's a company car

My birds da works for Nissan and gets one every year brand new

Most company cars are on 3/4 year leases.

robbie99 · 13-04-2015 09:55PM

Most cars will be worth only 40% to 50% of their new price after 3 years. That works out at 20% to 26% depreciation every year.

arleitiss · 13-04-2015 09:56PM

I assume "company car" means company like car dealer or company that requires person to travel a lot? Or can it be office workers too?

mickdw · 13-04-2015 10:03PM

To get back to the op, there is no known way for your average man with average income to drive a new 7 series each year

TallGlass · 13-04-2015 10:05PM

mhackett102 wrote: »

All depends on what type of car.

The likes of a Ford Fiesta wouldnt depreciate by 50% (2015 at €20,000 , 2014 at €10,000 , 2013 at €5,000 , 2012 at €2,500 etc.)

But the likes of a much more expensive car would depreciate by something very close to 50%. (I wouldnt say 50% but would be close)

Sorry. No way would you get a 2012 Fiesta for 2500. More like 8/9k.

How do people get brand new cars every year? How does it work?

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