HELPDESK:Answering all your motoring queries
From LB: I’m having trouble securing finance on a new car through the dealer. Are there alternative sources of finance? I’m trading in a four-year-old car and I want to trade up now and not have it depreciate more. I’ve read about the various hire purchase offers but I don’t want to risk it as my job may not be secure and I’ve heard that you can lose the car and still have the debt if you miss payments.
The last few words of your query would set off alarm bells about purchasing a new car. While there are savings to be made in terms of better fuel economy and lower emissions from new cars, the risks are clearly impacting on the decision of the dealer’s finance house to offer a loan.
The deposit requirements have increased greatly since you were last on the market and in many cases it’s in excess of 20 per cent.
The wisdom of tying down cash in a car in your situation should be considered. While we are all motoring fans, it’s important to recognise they are depreciating assets and burdening yourself with a loan at present might not be the best move.
There are other finance houses you can try outside those in the dealer network, such as credit unions and the traditional banks, but I would suggest you first revisit your motoring requirements and consider whether you can continue with your current car or opt for a lower priced – and more affordable – used car.
From JM: I live abroad but I am spending a lot of time in Ireland each year. I would like to buy a used car in Ireland instead of renting a car each year. However, a number of the suitable cars that I found are imported used cars. I was wondering if there are any reviews available of the pros and cons of buying imported used cars in Ireland?
First off, you need to carefully work out that buying a car will be worthwhile when you not only take its purchase price into account, but also the cost of tax and insurance, not to mention the likely maintenance and NCT tests. If it’s a business arrangement that has you visiting regularly then there might be an opportunity to do a lease deal through the company.
The main issue with imported used cars is simple: the history. By the sound of it you are not specifically looking for a used import so you’ll find that in many instances the prices for Irish used cars have now fallen in line with similar imported models.
The bargain deals on imported cars two or three years ago are a lot harder to come by and in general Irish prices are competitive, particularly for “run of the mill” models. The used imports from the UK in particular don’t carry any excess issues that would not arise with Irish cars of similar mileage, but you need to be certain of their history. Various websites like motorcheck.ie and cartell.ie will let you check the history of a UK car and are worth the charge.
The best way to keep costs down if you are just going for a runaround is to opt for a reliable and popular model, where spare parts are readily available and relatively cost effective. The older you go the more you save on the initial price, but the more regular and costly the repairs will be.
Send your queries to Motors Helpdesk, The Irish Times, Tara St, Dublin 2 or email motorshelp@irishtimes.com