There are a few things you need to consider when shopping for a new car, writes Geraldine Herbert
1 THERE HAS NEVER BEEN A BETTER TIME TO GO ELECTRIC
One in three car buyers walking into dealerships are no longer opting for a petrol or diesel car. Electric cars, plug-in hybrids and regular hybrids now make up more than 30pc of new car sales.
Car makers are responding to demand with a host of options, but how they differ and which is best suited to you is key to finding the right car for your needs.
Smooth, silent and easy to drive, electric cars emit no harmful fumes and are really cheap to run. However, longer journeys need planning as the current network of charging points is unreliable in places and they are not ideal for anyone who does not have access to offstreet parking.
Plug-in hybrids (PHEVs) have a much larger battery and electric motor than regular hybrids, so generally can do on average about 50km on electric power. Depending on your daily requirements, you could do your entire commute without using any fuel. PHEVs are a great choice for those with a commute that can take full advantage of the all-electric range, but be warned: fuel saving is most evident in an urban area; at motorway speeds, when the petrol engine takes over, the efficiency is not great due to the extra weight of the car.
With regular hybrids, you get the best of both worlds as they are powered by both an electric motor and a petrol or diesel engine. The idea is that the electric motor works for a short time at low speeds and the engine takes over at higher speeds. The benefit of a hybrid is you get better fuel economy and lower emissions than from a standard petrol car, so those who have average commutes and a fairly balanced mix of motorway and city driving can fully avail of its benefits. However, hybrids don’t offer very low fuel economy so they are not ideal for regular long-distance driving.
2 THINK ABOUT YOUR LIFESTYLE
Hatchback, estate, saloon, people carrier (MPV) or SUV? For small families, hatchbacks are ideal and there is a huge choice of both new and used models on the market. Estates and saloons are a good option if you need that extra boot and cabin space. Nothing beats the versatility of MPVs and while not as popular on the road as they once were, there are great bargains to be had buying second-hand. Generally, SUVs offer a high riding position, good space and often come with some off-road capability, but the boot space is often not that generous.
3 CHOOSE OPTIONS CAREFULLY
When it comes to car options there is a bewildering choice, so it is easy to blur the line between wants and needs.
Whatever you are considering, remember some options may make resale values higher, so an option like metallic paint should be high on your list. However, as with all colour choices, choose wisely – while tangerine is the colour of choice for standing out in the supermarket car park, a more subtle option is likely to appeal when it’s time to sell.
Sometimes a glass ceiling is just what you want and a panoramic sunroof not only looks good but will flood your interior with light and will make even the cosiest interior seem more spacious and upmarket.
While a more expensive option than most, leather upholstery is one to consider if your budget can stretch. If not, a really good option is leather-faced, which reduces the cost as leather is only used on the front of the seating area and the front of the backrest. Not only is it family-friendly as it’s easy to clean and can be wiped with a slightly damp cloth, it gives the car a very classy feel.
Nothing makes it easier to manoeuvre into and out of a parking space than a 360° parking camera. With a bird’s-eye view of the front, rear and kerbside of the car, you will have peace of mind.
4 CONSIDER HOW TO PAY
To tempt you back into showrooms there are a host of post-Covid car deals and offers available at dealerships nationwide, so it is a good time to snap up a bargain. (click here for the latest deals and offers).
However, you should carefully consider how you will pay for your new purchase. This will depend on your own financial situation and how much flexibility you are looking for, so you need to understand your options before taking the plunge.
One of the main advantages of buying with cash is that you don’t pay any interest on the transaction. However, when making the decision keep in mind that buying with cash may mean that you would be left with little or no savings to cover unforeseen expenses.
The simplest way you can finance a new car is by getting a personal loan from your bank or credit union. You can typically take out this type of loan with repayment terms ranging from three to five years and you can borrow the amount you want to pay for the car or make up any shortfall with savings or your current car’s trade-in value. The main advantage of a bank or credit union loan is that you own the car from the outset, so you can, if necessary, sell it to repay the loan should you fall behind on your repayments.
PCPs are a form of car finance based on a hire purchase (HP) agreement. However, unlike traditional HP or a bank loan, the repayments are typically lower, as you are paying off the depreciation of the car and not its entire value. At the end of the agreement, you have the choice of whether to make that final payment to own the car or not. The non-refundable deposit is typically between 10pc and 30pc of the value of the car and can be paid in cash or you can use a trade-in for part or all of the deposit. A guaranteed minimum future value (GMFV) represents what the car will be worth at the end of the contract and this, plus the deposit you choose to put down, is taken away from the total cost of the car, and you pay monthly payments (plus interest) on the remaining balance. PCPs are a very popular option with Irish buyers, but it is important to ensure you fully understand any mileage limitation and any other terms and conditions.
Geraldine Herbert
24th May 2021
