Who the hell is buying new cars?

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Originally Posted by dahamsta

I don't believe this "new cars cost less" business for a second, but unfortunately I've no way of backing it up.

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It depends on the car (both the "old" one and the "new" one), but if you're getting an efficient car then you'll be saving on tax and fuel. Ongoing maintenance, all going well, there probably won't be much difference. However, you're less likely to get hit with an unexpected with a new car, and if you do it'll be warranty covered. If our 10 year old can limp through to August we'd be looking at a day to day saving. On fuel alone, the costs per week will be at least halved by my calculations.

The caveat I would throw into the calculations is that it'd be changing from a family saloon to a hatchback, so the comparison probably isn't totally fair. But then I think this is what a lot of people are doing, particularly in 2 car households. People can no longer justify 2 family size cars when one of them only has just the driver in it.

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Originally Posted by Macy

If our 10 year old can limp through to August we'd be looking at a day to day saving.

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Again though, the issue not being looked at is whether a 3-year-old car would be better value than both.

Commercial sales are up for the same reason rental sales are up.

No offense intended Macy, but I was looking for figures; and general ones, not specific.

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Commercial sales are up for the same reason rental sales are up.

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I dunno what you ment by rentals, but I was on about light commercial vehicles............

Update....... re your comment on Deprectaion, every company is different. We go for straight line with a risidual but there is no hard an fast formula. The Government will give tax relief to 7 years so in theiry thats 14% year on year.

In Engaland where I write from, large fleet users write them off over three and that's why you can come to auctions over here and buy a three year old transit @ next to nouwt. (Though often In poor condtion , granted)

The two directors where I work have just replaced their 06 cars with new models (exact same cars as before). They are saving €400 per month on the repayments for each car, as well as saving €600 a year on tax for each car, plus they have got free servicing up to 100,000 km. They got a lot of "extras" thrown in with the new cars as well as they are the last of the older model which is being replaced this month by the manufacturer, and with the new VRT system, pre-registered and a dealer keen to make the sale, the new cars cost less than 2/3 the price of the identical 06 version.

Meanwhile back in the real world, I'm trying to stretch a few more months or years hopefully out of my 12 year old 1 litre Polo, but with 173,000 miles on the clock and an NCT due in May, things are not loking good. I wanted to hold out until a half decent 08 car (lower tax) becomes affordable, about the 3 year old mark.

I hate to be a killjoy, but how many years did they extend the lease by? Spending less per month is not the same as saving money.

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Originally Posted by dahamsta

I hate to be a killjoy, but how many years did they extend the lease by? Spending less per month is not the same as saving money.

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The example quoted by KevB76, companies hire or Lease cars so they know the actual cost per year (normally contracted for a set period) and this figure comes out of the P&L account. Families (households) weather they like it or not put a car into the household balance sheet. In this business example yes they are saving money becuase I am assuming they don't own the car, simply rent it and as this payment is less than before, it seems they are (and they are!) saving money on the cost of having (not owning) a vehicle.

I honestly believe that longer term, new car prices will start to fall further, seperate of sales drives or incentives, (as profit aspirations fall) therefore the amount subject to depreciation will be less, meaning therefore less depreciaation. This recession isn't / wasn't all bad!

Rent != Lease != Buy

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Originally Posted by dahamsta

I hate to be a killjoy, but how many years did they extend the lease by? Spending less per month is not the same as saving money.

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The 06 cars were on a 5 year loan, they refinanced after 4 years to get the new cars, presumably over another 5 year period. The saving really is a genuine saving as they need to replace the cars anyway, with the high mileage they do, the 06cars had clocked up a lot of miles and were at the point of beginning to need the odd extra bit of repair and maintenance. Saving €800 a month on the cars is significant to a small company like ours in the present situation, better to save it now when its most needed and keep payments going over subsequent years when things will have picked up (again they'd have to replace the cars anyway). A director arriving in to clients in a clapped out 5 or 6 year old car does not give a good impression, and breaking down on the way to some meeting is worse again!

I don't mean to sound like a bitch KevB76, but see post #48. A monthly saving and a cleaner car might be lovely for the company, but it's not the same as an actual saving. To calculate the that, you'd need to know whether the cars are rented or leased, the original APR and contract length, and the current APR and contract length.

was driving into Dublin last night, and noticed the car in front of me was 10-D-10XXX. 10,000 cars sold in less than 3 months. Don't think I saw any number higher than 37,000 on a 09 reg last year

27000 last year, not 37000.

With the way the market goes, 11000 over two months will probably work out less than 40000 over the year. So I'd say there's more closures on the way.

you sure Stu? There's defintely a 09-D-35000 reg car in the car park at work

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With the way the market goes, 11000 over two months will probably work out less than 40000 over the year. So I'd say there's more closures on the way.

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Stu, Tetsjuin was talking about D Reg cars as far as I know. Last year there were told 58k cars were sold. This year to end of feb we are at 28 k vehicles or about 17% up on last yearfor the same period. Nationally of course.
The motor trade is improving (the clue is in the thread title!!) and with the garages out of buiness last year the one remaining should be able to break even by the year end. I'm predicting sales of 70,000 - 75,000 cars this year.

Sorry Dahamsta, if Kev's boss got a newer cleaner vehicle than last year and are paying less for vehicle hire this year compared to last, then that is a saving. Simple.

Don't get too bogged down on APRs length of agreement etc, it's about Euros and cents and I think that is the point Kev was making??

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Originally Posted by tetsujin1979

you sure Stu? There's defintely a 09-D-35000 reg car in the car park at work

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Pretty sure. There's re-reged imports going out at the moment that are 09-D-29xxx, and they'd be tagged on at the end obviously.

Father - I was also talking about D reg cars. Rest of the country doesn't matter. :)

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Father - I was also talking about D reg cars. Rest of the country doesn't matter. :)

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so now your working the the FAI? Ha.

Thanks for pointing out the 10 - D - 29??? regarding imports.

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Originally Posted by Fr Damo

Sorry Dahamsta, if Kev's boss got a newer cleaner vehicle than last year and are paying less for vehicle hire this year compared to last, then that is a saving. Simple.

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I don't think anyone reads posts around here. If it's a lease and the APR is higher and/or the term is longer, then it's unlikely to be a genuine saving. If it is a hire contract, which hasn't been specified, then it has zero bearing on the thread in the first place, since the thread is about "buying" new cars. For the 3rd time: Hire != Lease != Buy.

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Originally Posted by pineapple stu

Pretty sure. There's re-reged imports going out at the moment that are 09-D-29xxx, and they'd be tagged on at the end obviously.

Father - I was also talking about D reg cars. Rest of the country doesn't matter. :)

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fair enough, it could be one of those re-reged cars. But it's definitely got 35000 on the plate

Is it an 08? (Seriously). Cos 09-D-29xxx are imports being registered this month.

Possible it's a special order plate (like 09-D-911), but I would have thought you'd have to wait for all previous numbers to be registered before you can register your held number.

don't think so, I'll check for it over the next few days