Buying a car - paying for your car
Before you start to look at cars, work out how much you can afford to spend. This saves you time when you go online or to a dealership, as you know exactly which car you can afford and which ones you can’t.
There are three main ways in which you can finance the purchase of a car:
Savings
Loans
Car finance
Savings
You may decide to save up for the car. If you do, make sure you are getting the best rate on your savings by checking out our regular savings account comparison. Saving up is the cheapest option for you as you do not have to pay interest on a loan. Rates from different providers can vary between one and five percent depending on which savings account you choose so make sure you shop around first and get the most from your money.
Loans
If saving for a car is not a realistic option, you might decide to apply for a loan. If you decide to borrow, check out our personal loan cost comparisons to see where you can get the best value loan and how long it will take you to pay it back. You can also use our loan calculator to work out repayments on loans of different amounts. The cost of credit can vary by as much as €501.15 between different providers for a €13,000 loan over three years. Aim to pay off the loan before you expect to get rid of the car, so you are not paying the loan back after the car is gone. Use our budget planner to work out how much money you have left over at the end of each month based on your current income and think about whether you can really afford a car loan. Try to be realistic with your repayments so that you are not leaving yourself short each month. Remember, you will also have ongoing costs for fuel, tax, insurance and servicing.
Car finance
Many car finance agreements offered by garages and lenders are actually hire purchase agreements. Hire purchase is different from a personal loan because you don't own the car until you have made the last repayment. This means you cannot sell the car if you run into problems making your repayments. Always check what you are being offered, read all the small print and make sure you know what you are signing up to. Shop around for car finance, don’t just take the first offer you get and check out your rights if things go wrong. Remember, if you get into difficulty making repayments, your car could be repossessed. For more information, go to our section on tackling debt. For further information on ending a hire purchase agreement, download our Ending a hire purchase agreement PDF (830KB)
Expenses
Don’t forget, there are other costs you will need to factor into your budget such as the fuel type and fuel efficiency, insurance costs, the cost of spare parts (some manufacturer’s parts can be a lot more expensive than others) and tyres. Most of these costs vary depending on the type of car you buy, so it’s worth considering these costs before you make your decision. What may first seem like a bargain may end up costing you more than you think!
Motor Tax
All cars on the road in Ireland must have motor tax. The amount of motor tax you pay for a vehicle registered before 1st July 2008 is based on the size of your vehicle’s engine - in other words, the larger your engine size, the higher the cost of your motor tax. For new cars registered since 1 July 2008, motor tax charges are determined on the basis of seven CO2 emission bands with lower emissions resulting in lower charges. Check out what motor tax level applies to the car you are interested in as the difference could be several hundred euro a year. See for more details.
Car servicing
Consider how much it will cost to service the car and pay for any additional repairs or spare parts. Getting your car serviced is important to maintain the life of your car and for your safety. Before you buy a second-hand car, check when the last service was. Check out our information on car servicing and repairs and don’t forget to shop around in different garages before you book your car in.
NCT
You also need to have a valid National Car Testing (NCT) certificate for your car if it is four years old or more. After the first test, your car will need an NCT every two years. There is a test fee of €50 and a re-test fee of €28 if your car fails. If you only have to make minor repairs or adjustments, the re-test is free.
Before you start to look at cars, work out how much you can afford to spend. This saves you time when you go online or to a dealership, as you know exactly which car you can afford and which ones you can’t.
There are three main ways in which you can finance the purchase of a car:
Savings
Loans
Car finance
Savings
You may decide to save up for the car. If you do, make sure you are getting the best rate on your savings by checking out our regular savings account comparison. Saving up is the cheapest option for you as you do not have to pay interest on a loan. Rates from different providers can vary between one and five percent depending on which savings account you choose so make sure you shop around first and get the most from your money.
Loans
If saving for a car is not a realistic option, you might decide to apply for a loan. If you decide to borrow, check out our personal loan cost comparisons to see where you can get the best value loan and how long it will take you to pay it back. You can also use our loan calculator to work out repayments on loans of different amounts. The cost of credit can vary by as much as €501.15 between different providers for a €13,000 loan over three years. Aim to pay off the loan before you expect to get rid of the car, so you are not paying the loan back after the car is gone. Use our budget planner to work out how much money you have left over at the end of each month based on your current income and think about whether you can really afford a car loan. Try to be realistic with your repayments so that you are not leaving yourself short each month. Remember, you will also have ongoing costs for fuel, tax, insurance and servicing.
Car finance
Many car finance agreements offered by garages and lenders are actually hire purchase agreements. Hire purchase is different from a personal loan because you don't own the car until you have made the last repayment. This means you cannot sell the car if you run into problems making your repayments. Always check what you are being offered, read all the small print and make sure you know what you are signing up to. Shop around for car finance, don’t just take the first offer you get and check out your rights if things go wrong. Remember, if you get into difficulty making repayments, your car could be repossessed. For more information, go to our section on tackling debt. For further information on ending a hire purchase agreement, download our Ending a hire purchase agreement PDF (830KB)
Expenses
Don’t forget, there are other costs you will need to factor into your budget such as the fuel type and fuel efficiency, insurance costs, the cost of spare parts (some manufacturer’s parts can be a lot more expensive than others) and tyres. Most of these costs vary depending on the type of car you buy, so it’s worth considering these costs before you make your decision. What may first seem like a bargain may end up costing you more than you think!
Motor Tax
All cars on the road in Ireland must have motor tax. The amount of motor tax you pay for a vehicle registered before 1st July 2008 is based on the size of your vehicle’s engine - in other words, the larger your engine size, the higher the cost of your motor tax. For new cars registered since 1 July 2008, motor tax charges are determined on the basis of seven CO2 emission bands with lower emissions resulting in lower charges. Check out what motor tax level applies to the car you are interested in as the difference could be several hundred euro a year. See for more details.
Car servicing
Consider how much it will cost to service the car and pay for any additional repairs or spare parts. Getting your car serviced is important to maintain the life of your car and for your safety. Before you buy a second-hand car, check when the last service was. Check out our information on car servicing and repairs and don’t forget to shop around in different garages before you book your car in.
NCT
You also need to have a valid National Car Testing (NCT) certificate for your car if it is four years old or more. After the first test, your car will need an NCT every two years. There is a test fee of €50 and a re-test fee of €28 if your car fails. If you only have to make minor repairs or adjustments, the re-test is free.
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