Tips When Buying a New Car in 2022

With the cost of used cars at an all-time high in 2022, some of us are considering making the splash and buying a new car. The scarcity of supply in the used car market means people are increasingly willing to ignore the traditional financial advice of buying a 3 year-old car instead of a new car. This advice proclaims new cars depreciate in value by over 15% after the first year. Many will now accept the loss of new cars value rather than paying more for a used car in todays climate. If you’re looking at buying a new car in 2022, we’ve collated all the necessary information you should consider during the buying process below. 1. Know your budget & if a used car offers better value One of the most important considerations when buying a new car is determining your budget. Your budget may mean some models/brands will be out of reach or you may have to sacrifice on additional specs. If you do not have the savings to cover the full price, then Car Finance is another consideration (more on this in tip 12). It might also be worth considering if you can afford the car you really want or if you’d be better off buying a used car. You can view one of our blogs investigating the questions you should ask when buying a used car. 2. Choosing between Diesel, Petrol, Hybrid or Electric (BEV) The debate is raging amongst new buyers on if now is the time to make the switch to electric vehicles. Such a move would avoid rising fuel costs and future proof their next car purchase. Over 20% of new car sales in January 2022 were electric vehicles. One can read about the advantages and disadvantages of Electric Cars on our recent blog. For those reticent about making the switch to fully electric (BEV’s), then hybrid vehicles are the popular alternative. For the traditionalists, the great electric vehicle switch will take time before reaching mainstream. This is especially true with the government’s goal of 1 million electric vehicles on the road by 2030. In that instance, petrol and diesel vehicles are not going anywhere in the next few years and may offer a more familiar and less risky purchase for some. 3. Select a dealer/brand that will be easy visit/contact post purchase When at a dealership, don’t rush into a deal. Consider if the dealership is responsive to your concerns and have a great customer service. Both will be important if you run into any issues with the car. The majority of new car manufacturers offer a car warranty. It may be important that there is a recognized brand dealership near you in the event of vehicle issues. This does not mean you need to buy locally. But if you buy a Toyota in Dublin while living in Galway, you should consider if there is a brand dealer in Galway that could provide the regular servicing of the vehicle. 4. Examine running costs & fuel efficiency/range As fuel increases continue, fuel economy will be important in the choice of your next vehicle . Hybrid vehicles can save up to 30% on fuel costs. Battery vehicles can save 70% on car running costs but can vary in driving range depending on the model. Many new petrol and diesel vehicles also offer improved fuel efficiency. It may be worth noting that larger engines may be increasingly targeted in Government measures aimed at minimizing Carbon emissions. 5. Know the no. of years warranty Most car manufacturers offer a warranty on new car sales. This means they will repair any major faults/defects to the vehicle. E.g. Kia offer one of the best in class warranties of 7 years or 150,000km whichever is sooner. New cars rarely have major issues during the first 5-7 years off the production line. Yet, if you want peace of mind, keep an eye on the warranty offered by the manufacturer and after care services. 6. Research the price of car insurance Before buying a new car, you should check what the insurance is likely to be. Larger engine sizes will have higher insurance premiums. Checking before purchase will allow you to avoid any nasty surprises. 7. Investigate if the car specs meet your requirements Does the car have all the specs you need? Or do some technical specs come at an extra cost such as Cruise control, alloy wheels, sunroof etc. Find out what comes as standard and what specs can't do without. Also bear in mind other aspects of the car such as interior space or boot room if you have a growing family. 8. Test drive more than one car Its important to try out a range of different car models to explore car suitability. Its often only when we get in a car that we find out if this car is for us. If you like a car, try to test drive its main competitor as well so you don’t develop “oneitis”. Don't be clouded by your first new car experience and miss out on a better deal. 9. Negotiate on price Not everyone realises when buying their first new car that the stated dealer price for new vehicles excludes “delivery and related charges”. This can often add on an extra €1500 to the price. Don’t be afraid to negotiate on price with the Salesperson. They will often move on the mentioned pricetoo get a deal done. 10. Trade in your old vehicle to decrease the price Having a car to trade in against the value of the new car will help in dealer negotiations. Used car sales are booming and dealers know they can shift cars. They may give you a better deal if you trade in your existing car. 11. Factor in the deposit and delivery date in your buying decision Car dealers may ask for a deposit of greater than €500 to reserve your new vehicle. You often may have to wait to receive your new car as it may not be in the showroom. You will need to factor this into your purchase timeline. If you need the car very soon, new car deliveries usually take over 8 weeks. 12. Identify all of your car finance options (and know the small print) When buying a new car, most dealers will offer car finance/PCP. While PCP (Personal Contract Plan) can be convenient, it comes with many caveats. One of these is that you won’t fully own the car until the final payment. Essentially, PCP finance is a lease scheme. You may also be constrained by car servicing agreements and caps on mileage. PCP contrasts with a credit union car loan which is available to people both purchasing a new and used vehicle. With credit union car loans you own the car from the start. You can drive it as much as you want with no mileage caps. Read more about the difference between the two loan types on our blog comparing credit union car loans vs PCP. Find your nearest credit union using our credit union locator tool and find out more about credit union car loans. Source: https://www.creditunion.ie/blog/12-tips-when-buying-a-new-car-in-2022/

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Helpful Advice For Anyone Looking To Buy A New Vehicle

May 04, 2022

Purchasing a car is an incredibly intimidating affair, especially for the uninformed. If you are struggling with getting the right car, this article can help you to reduce the price. By paying a fair amount, you will feel happier and more relaxed about your purchase. Good luck with your car purchase! Never, ever skip the test drive when you are car shopping. You have to get behind the wheel of that car and see how it feels before committing to a buying it. Make sure you try a variety of driving conditions, including surface streets and interstate driving. Do not forget to try pulling it into a parking space in a shopping center. Before you set foot into a dealership, do some research online. Check nearby dealership's websites and record their listed price on the vehicle you want, as well as any special deals they might be offering. Having Cars For Sale Ireland at your disposal will be a valuable asset when it comes time to negotiate with a salesman. Take time to look over the dealer prior to making buying offers. You will have more negotiating power if you know how they operate and what finance options they offer. Reading customer reviews can also give you a good picture of what you may be getting into. Bring along a friend. They can be an extra set of ears, along with being more reasonable about leaving when hearing a deal that doesn't benefit you. This company could be your life partner, a best friend or a trusted family member. When you are looking for a car to purchase, make sure that any vehicle you consider is equipped with the latest safety features. You should always get a car with anti-lock brakes. Air bags are also essential. Safety is important, since you will be traveling in this vehicle alot. Check the BBB rating of your local car dealers before you visit them. As you likely already know, car dealers can be less than honest. Save yourself from a lot of stress and expense by investigating how others feel about the car dealer. The time it takes is nothing compared to the time you can waste at a sheisty dealer. Find out whether there are any upcoming car shows nearby. This is an excellent opportunity to explore your options. This is a great opportunity to look over many different cars in one place. You can talk to the experts on hand as well. After visiting an auto show, you are likely to have a narrowed list of vehicles that interest you. Demand a safety report and vehicle history report from the dealer. Any good car dealer will have these items available for any vehicle on the lot. This is information that will tell you how safe the vehicle is as well as any major accidents or work that has been needed on the car. Do not get all the extras offered during the negotiation. These things include extended warranties, clear coat and fabric care options. You can generally purchase these features after you have bought the car for a fraction of the price. Also, do yo really want to be paying for these few features over the length of the loan. Always be leery of any used car dealers on the side of the road. These dealers almost always have a less than reputable reputation. The cars they sell could have flood damage, need major repairs, and are sold without warranty. Once you drive that car off the lot, any problems the car has are now your problem. When looking to buy a new or used vehicle, make sure that you never elude to the fact of how much money you have on your person. You only want to talk about what you think you should put down in regards to the terms and price of the vehicle being discussed. If you don't have friends or family in your area to ask for advice from, check the Better Business Bureau's website to find out how the dealers in your area are dealing with customers. This will allow you to at least remove those with many complaints from your list of options. Now that you are informed, you won't need luck to get the right car. Remember these tips, keep calm, and find the car that you have always dreamed about. Your friends will not believe the price you paid. You will love the car you are driving. Everyone comes out ahead!

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What Makes Luxury Cars Special

There are many vehicles today that are marketed as luxury vehicles, but some of them could be described as glorified metal boxes on wheels. Car manufacturers often produce a basic car model and include additions that you have to pay for, but this does not constitute a luxury car. In fact, depending on the brand, nearly all manufacturers today offer some mix of luxury features to enhance their advertising. In the past, luxury cars were defined by their size, comfort, space and presence, but today, the feel of the vehicle is also a significant factor.

Status
The intangible value of status adds to the worth of a luxury vehicle. Some people simply want the latest and greatest of whatever is in the market; having the money to buy a luxury car points to your success. Joining the elite group of luxury car owners is also easy since you can buy a used luxury car - you get to enjoy all the perks of a better class of cars and the after service associated with them.

Aesthetic value
A significant divergence exists between a standard vehicle and a luxury car, in which the latter has the distinct look that makes it stand out. Smoother design shapes and lines and vibrant paint are part of the luxury package - no flaws are visible on the bodywork or paintwork. They are also known for having some of the plushest interiors and the most options for customization.

Design quality
Luxury cars typically meet stringent technical requirements. There is a world of difference between the quality of fit, finish, overall performance and operating efficiency of luxury cars and those of lower priced models. A car's potential to go fast and handle well is a powerful lure characteristic of luxury cars, with some boasting horsepower upwards of 300 mph and going up to 500 horsepower. Luxury cars also offer advanced safety options and the best entertainment technology. Excellent aerodynamics is also an indication that a lot of resources and research have been pumped into the vehicle's design.

Size
Equating luxury and size is a worldwide notion. Size provides an extra level of refinement, craftsmanship, features as well as an overall presence and stance that is unique to luxury cars. However, there is also a market for compact, fuel-efficient luxury cars with the right features. An increasing number of luxury car owners today aren't pining for bigger vehicles. For instance, many owners of BMW 3 Series compacts have no intention of moving up to the larger 7 Series and have no problem paying 40,000 Euros for a 3 Series.

Reputation
A lot can be said about the emotional connections people can make with a brand and how that makes them feel, but there is a lot more to luxury cars than prestige. When it comes to the luxury market, the fact that a brand is time-tested is a key selling point. The customer experience associated with a brand is also critical - people want to walk into a dealership and feel that their needs are being met. Luxury car brands are also known for their credibility when it comes to safety, so much so that consumers are often willing to spend more on new innovations.

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New 131 Registration Plate

After quite a bit of debate and superstition about the 13 reg plate, Ireland has introduced a 2 tier registration plate in 2013, new cars will have either a 131 reg plate if registered up to June 30^th or a 132 reg plate if registered from the 1^st of July. This year the motor industry will attempt to spread sales across the whole year and not just sell the bulk of their cars early in the year.

Alan Nolan, director general of The Society of the Irish Motor Industry (SIMI), told Irish Independent : "While it is too early to tell how new car sales are doing, there certainly has been a lot of interest. The motor industry is often used as a barometer for the economy and we hope, with consumer confidence seeing some slight pick up, combined with the new number plate, that interest will grow in coming weeks."

Car sales were down 12% last year according to new car sales figures from the SIMI. We wish the best of luck to the Irish motor industry for 2013 and hope it will a good year for all involved.

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The Motor Industry Has Come A Long Way

The Motor industry has come a long way since 1885 when Karl Benz put together the first contraption in Germany. The industry quickly became viable with loads of  investors getting into the field. By 1929, more than 38 million cars were in the US alone. This meant that there was a car for every 5 people in America. This already was an achievement and with the US providing 90% of the cars. Soon Japan took over as the largest producer of cars and China are pushing for that spot today. The advancements have been nothing but phenomenal from simple steam engines to petrol engines and now hybrids and Electric. The development has seen new car brands develop to provide cars for many different needs and styles. The initial purpose was for transportation and functionality. The luxury need was later developed and today we see high flying concept cars coming to being every other day.

Materials

It is almost impossible to tell where we are heading in the industry. The materials that were used back in the day were purely metal and leather for interiors. The industry has taken to plastics and carbon fiber among others for improvement and luxury. Engines have been developed using light aluminum and bodies carbon fiber for lightness. Different plastics have been used for support and lining while wood and fabrics ranging from leather and rexin are incorporated into the designs. Cars have become purely instruments of innovation. Functionality and elegance gaps are slowly closing in with earth movers being developed to provide comfort during work. Trucks have been fused with state of the art technology to provide a peace of mind and unmatched comfort for long distance drivers.

Speed

30 miles per hour was a killer speed in the 1890s. Speeds have since been improved with engines and car systems being developed to give more power. With present speeds of over 260miles per hour, very little is left to the imagination of many. The Buggati Veron, Ferrari, Lamborghini and other supercars have made speed their opium. Cars are being built to provide more horse power like jet engines, and this speed  comes with a price in terms of both risk and cost. The motor industry has also claimed many lives on the roads so standard cars come with standard speeds too.

Safety

The main concern of the car industries now is safety and functionality. With such speeds being developed. It has become crucial that cars are fitted with more safety features. Airbags have been developed with a fusion of anti-roll bars to increase the chances of survival in high speed crashes, impact and rolling. Volvo ranks as one of the safest vehicles.  Mercedes Benz are proving to be very safety conscious too.

These factors are a major concern when buying cars whether used or new. Laws and regulations have been put in place to regulate the automotive business and driving for the safety of the users. The concept car developments however give a good idea of where the industry is headed in the future.

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Cost of driving your average family car in Ireland

If you are buying a new car in Ireland what is this car going to cost you per week. I have done a calculation based on an average car costing €22,000 euro over 5 years. I have taken the weekly repayments, cost of insurance, tax, petrol and maintenance into consideration. What we should have at the end is the total cost of driving your average family car.

Ok so lets start

Car costs €22,000

Bought over 5 years with no deposit with 9% interest will cost €104 per week

For this experiment we will put it in tax band C which is equal to €5.81 per week

Lets assume that we drive the yearly average which is 18000 kms per year or 346 kms per week

Lets also assume that it does reasonable mileage per gallon of 70 kms = about 5 gallons per week @ €8.50 per gallon = €42.50 per week.

Now we must add insurance at an average of €520 per year to a driver with a full license and 3 years’ experience working out at €10 per week.

Servicing and Maintenance will probably be around €9.60 per week over the 5 years. This is of course if nothing major goes wrong with car.

104.00 + 5.81 + 42.50 + 10.00 + 9.60 = 171.91

So the total cost per week to drive an average family new car in Ireland is actually a whopping €171.91 per week.

Now lets assume that the average wage of the people who buy these cars is €500 per week take home pay meaning you must be earning in excess of €35,000 per year. This means that is costing more than 33% of your income to have a used car sitting outside your door.

However after 5 years this car still has some value, if its not crashed or damaged it will be worth somewhere in the region of €6000 giving you back €23.73 per week.

So the question we have to ask is how many people can afford to pay 33% of their wages out on a used car for 5 years, after all it becomes a used car the minute its driven out of the dealers forecourt.

All these figures are based on averages, in many cases it will cost more for the average family car as most will be driven up to 30,000 kms per year.

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