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

jca

Toyotafanboi wrote: »

that's a slight omission :P

still, your car is worth €40k new, you picked it up brand new for €2k up front and you have €6600 to pay back over two years, €8600 all in.

your car is worth an estimated €23k after 2 years, but €40k - €8.6k = €31.4k.

either your estimated future value of your car is very wrong or this company are making huge losses assuming they sell after 2 years.

It doesn't make sense to me either. No dealer loses money.... Strange that Nct is included when the car won't need an Nct until it's 4 years old.

boardzz

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

I wanna buy your car when you're trading up

MarkAnthony

I suspect there's a tax write off going on somewhere.

I've always wondered if there was some sweet spot of getting a car at X and selling it at Y every few years. Say a two year old car selling it after two years with a year or so left on the warranty and being quids in?

_Brian

afatbollix wrote: »

€2k So still quids in.

I'm happy and that's the main thing.

I'm very interested in the leasing option you've quoted.. Can you send me on some details on the company you've used... via PM is fine if you'd rather not post publically.. Cheers.

gonko

afatbollix wrote: »

I went down the lease route this year.

It is worth € 39,552.42 new. I pay €275 a month, This includes tax, Servicing and NCT after the two years.

After two years I hand it back and go find another one. I don't have to worry about selling or find a good trade in price.

Currently after two years on auto trader my car is worth €22,500

There is no point in owning something that deprecates. It is worth feck all at the end!

If you buy a car and worry about the resale value, then yes, buying a new one will lead to many sleepless nights.
Lets say 275pm over 60 months = 16,500 spent on something you do not own or have title to. Money flushed away.

Now lets say we take advantage of the number plate whores. Pick up the car after 2 years at a huge discount of c.18,000. This is now yours. Lets see if we value the use of the car. Value in use, or cost in use was 3600 pa.
Put a provision of lets say 350pa for servicing etc (services are typically 130 MAX....any more and you are being had).

3950pa total cost. Over 5 years 19750 approx.
Potential resale value...lets assume a 15 year useful life cycle. By the time you sell, lets imagine 7 are used, from a valuation viewpoint.
Lets say you sell on for around 8k.

Cost to Lease over 5 yrs 16500.

Cost to own
Car 22000
Service 1750
TAX 2000 (assume c.400 pa)
Less resale (8000)
TOTAL cost 17,750. ---- If you keep the car longer than 5 years, you will go into a positive cash position. But the point is, it is your car, you do not have to hand it back....ever. Of course, if you choose not to lease new cars, and buy a 3 or 4 year old car (which are mostly still perfect), then you benefit even more.

A depreciating item can work either way
1. You pay an expense each month etc via a lease to justify your cash position,
or
2. See it as a one off expense, that you intend on keeping.

Each choice will be different for different people.

mickdw

afatbollix wrote: »

I went down the lease route this year.

It is worth € 39,552.42 new. I pay €275 a month, This includes tax, Servicing and NCT after the two years.

After two years I hand it back and go find another one. I don't have to worry about selling or find a good trade in price.

Currently after two years on auto trader my car is worth €22,500

There is no point in owning something that deprecates. It is worth feck all at the end!

With the greatest of respect, those figures are horse**** unless I have misunderstood you.
Did you get the car new or at 2 years old?

a postere

What would it cost to change a fiesta / polo sized motor every year if you were doing approx. 10k a year in miles ?

And what would this cost in comparison to changing the car every 3 years or 5 years instead ?

Good job people buy new cars, or there would be no used cars for the rest of us.

. . . and just for fun what would it cost to change to a new fiesta/polo every 6 months from a 1X1 plate to a 1X2 plate. Probably not as much as you think, as dealers could practically sell them off a demos.

Tigger

afatbollix wrote: »

I went down the lease route this year.

It is worth € 39,552.42 new. I pay €275 a month, This includes tax, Servicing and NCT after the two years.

After two years I hand it back and go find another one. I don't have to worry about selling or find a good trade in price.

Currently after two years on auto trader my car is worth €22,500

There is no point in owning something that deprecates. It is worth feck all at the end!

seems wrong asthmatically

ardmacha

Tigger wrote: »

seems wrong asthmatically

Cough!

R.O.R

mickdw wrote: »

With the greatest of respect, those figures are horse**** unless I have misunderstood you.
Did you get the car new or at 2 years old?

I do this for a living and they look like utter bollocks to me. Will try to run actual figures to see how far out they are.

Mention of auto trader makes me think he's not in Ireland, so it's as relevant as saying it costs 12 dong a month to lease the 2 camels I have.

lomb

afatbollix wrote: »

I went down the lease route this year.

It is worth € 39,552.42 new. I pay €275 a month, This includes tax, Servicing and NCT after the two years.

After two years I hand it back and go find another one. I don't have to worry about selling or find a good trade in price.

Currently after two years on auto trader my car is worth €22,500

There is no point in owning something that deprecates. It is worth feck all at the end!

Who leases in this country? Its all PCP or HP here no dealer or distributor wants to loose money here.
That 40k car is worth 32 at end of year one and 26 at year 2 ie at 20% reducing balance and then theres the finance cost also.

lomb

saying that in the uk cars are leased for small monthlies when on special offer. Something like a new Merc slks for 300 a month and that's a 50 k car here. They can do it as the manufacture is directly connected to a large market in the uk and when private demand is low they have employees and an assembly line to run so they will build the cars and lease them below cost with a heavy subsidy in order to keep things running. And thats why new cars offer very poor value in Ireland. If you can maintain one a 7 or 8 year old car is the way forward here unless money is no object..