Buying a new car can be costly, so it’s important to ensure that you’re making the right decision before you splash out on a new car.
Do You Really Need a Brand New Car
One of the biggest factors affecting the value of your car is depreciation. A brand new car’s value drops as soon as it leaves the garage for the first time. It may be worth weighing up whether the benefits of buying a new car are worth the extra costs compared to buying a three-year-old car, for example. According to motorcheck.ie, a Volkswagen Golf loses up to 40% of its value in the first three years.
Understanding the Irish Car Market
With a noticeable increase in the sales of electric and hybrid vehicles, there has been a significant shift towards sustainable driving in the Irish auto market. Additionally, consumers are favouring small SUVs and crossovers because they provide both space and fuel efficiency.
The Irish car market is home to several reputable dealerships and manufacturers. Some of the key players include:
- Toyota Ireland: A leading car manufacturer offering a wide range of vehicles, including hybrids.
- Volkswagen Group Ireland: Known for their reliable and well-engineered cars.
- BMW Ireland: A luxury car manufacturer with a strong presence in the Irish market.
When planning your budget for a new car, consider not only the upfront cost but also the ongoing expenses such as insurance, fuel, and maintenance. It’s advisable to allocate a portion of your budget for unforeseen repairs and servicing.
In Ireland, you have several financing options to choose from, including:
- Bank Loans: Traditional loans from banks with competitive interest rates.
- Credit Unions: Local credit unions offering loans with potentially lower interest rates.
- Dealership Financing: Many dealerships offer financing options with the purchase of a new car.
Choosing the right car insurance is crucial. Consider factors such as coverage, premiums, and the reputation of the insurance provider. KennCo, for instance, offers comprehensive car insurance policies tailored to your needs.
When Should You Buy a New Car?
The date that you purchase a new car can have an impact on the price. Car dealers are often paid bonuses at the end of each quarter based on their sales, so you’re more likely to negotiate a better deal at the end of each quarter when there is added pressure for them to reach targets. There’s also pressure on dealers to sell cars before the second half of the year so if you can, don’t buy your car on the 1st of January.
What Other Costs Should You Factor In?
It’s not just the cost of your car that you need to consider. If you’re planning on keeping the car for a while, ongoing costs must also be factored in.
Depending on how you plan to use your car, you must decide between diesel and petrol engines. Your car’s fuel and maintenance costs may fluctuate depending on your needs. Diesel cars, for example, need to drive on motorways frequently to keep the engine running smoothly, so if you’re planning on driving around a city, you may have to fork out more for services.
It’s also worth comparing the difference in CO2 emissions between car models. This affects your environmental impact and the amount of road tax you’ll end up paying.
Test Drive Tips
Before going for a test drive, research the car model thoroughly and prepare a list of features you want to check. It’s also beneficial to schedule test drives for multiple cars to compare their performance.
During the Test Drive
Pay attention to the car’s handling, braking, and acceleration during the test drive. Also, check the comfort level of the seats, the visibility of the driver’s seat, and the functionality of the infotainment system.
What Purpose Do You Need the Car For?
If you’re planning on investing money into a new car, you need to think about what you really need from your car. Children might be the last thing on your mind at the moment, but this could change within the next five years. So if you’re planning on keeping the car for a while, take a little time to think about your future requirements too.