Many Irish motorists now opt to buy second hand as new cars can depreciate rapidly in value. Buying a second-hand car doesn’t need to be stressful so here are some tips from the team at Whichcar.ie for you to consider before you buy your next motor.
Doing the Maths
Before talking to a dealership or seller be very sure of your budget. Insurance & maintenance costs will most likely be the core deciding factors in your choice of wheels. Pick a few models you are interested in and ask for quotes from insurance companies or an insurance broker.
Find out about the tax costs and remember if the car is over four years old, it will need to pass an NCT every two years. You are budgeting for purchase, insurance, taxation and maintenance so you will need to get out the calculator and do your homework! The best idea is to try figure out your monthly budget including all these expenses and shop from there. Whichcar.ie has a “Search by monthly budget” feature which will easily show you what type of cars you can purchase within your budget.
Where to Buy From
In Ireland, there are typically three options when it comes to buying second-hand cars: dealers, private sellers and car auctions. Your consumer rights vary for each of these sellers. When buying from a dealer, you are protected under the Sale of Goods and Supply of Services Act. This means if you find a fault with the car, it is the dealer’s responsibility to set things right. If you buy from a private seller, you have very little legal protection if you subsequently find the car to be faulty. Car auctions are also another way to find cars for sale at bargain rates; but, as with private sale, once you buy from an auctioneer, they cannot be held responsible for any defects with the car.
When buying from a dealership make sure to check their warranty terms. The majority of reputable dealerships have strict safety and quality checks on all used cars and vans they sell and also history check all vehicles to ensure they have not been crashed. All these factors combined make it worthwhile to choose to buy from a dealership. On Whichcar.ie we only advertise the stock of select dealerships who follow these practices.
Now that you have chosen your dream car, you might need to consider what finance options are available to you. Paying in cash, is, of course, the most desirable way to pay for your second-hand vehicle. If you pay in cash you will own the car outright, and you will not have the added cost of interest on loan repayments.
If you do not have the cash to pay the full amount upfront, consider using savings to place a large deposit on the car. This will reduce the capital sum you need to borrow and bring down the interest on loan repayments.
If you do need to borrow, many dealers offer finance through Hire Purchase (HP) or Personal Contract Plan (PCP). HP usually involves a small deposit, with monthly repayments for the car thereafter. The downside is you will not own the car until the final payment is made, so if you miss a payment the dealer can repossess the car. PCPs usually have lower monthly repayments when compared to HP. You also have the convenience of being able to sort out your finance and pick your car in the same place.
However, PCPs are very complex compared to other types of car finance and it’s important to understand all the terms and conditions before you sign up.
Another option is to take out a personal loan yourself from a financial institution such as a bank or credit union. The monthly repayments may be higher this way but you will own the car outright from the get-go!
You can find out more information on all car finance options at CCPC.ie.
In short, all you need to do is budget, research, pick a dealership you trust & a finance option that suits you!
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