Lease v buy a car

A

Annieindublin

Registered User
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I was always of the view that it made more sense to buy than lease.
I’d borrow from the Credit Union and repay a year or so before I needed to trade in my car.

Between one thing and another I’ve had the same car for 13 years now, it’s just passed it’s NCT and it’s going very well for an old car. No loans in years. So I’ve built up some savings.

But I kinda need a car I don’t want.. for a few years anyway. I now need a sensible hatchback suitable to transporting my old mum around, her car is dead, she shouldn’t be driving anyway but I drive hers when I need to take her out and about. So my cute 2 seater isn’t working. No room for the wheelchair/walker and it’s too low for her. Being realistic it’s going to be a few years.

Should I buy a secondhand hatchback or lease one? I’ve been thinking about hybrid or electric.

If buying .. finance or use my savings. I’ve no other call on them looming (that I know of but stuff happens).

AIB just sent me an email about Nifti leasing. That got me thinking
 
Annieindublin said:
If buying .. finance or use my savings. I’ve no other call on them looming (that I know of but stuff happens).
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The maths still works out in favour of buying rather than leasing (particularly if you're happy holding onto a car for a relatively long time), and using savings instead of finance. While it's nice to sit on savings, if you have the discipline to put the money you would have spent on financing back into savings you'll be in a better position. If an emergency does crop up in the meantime a loan could be an option then.
 
Annieindublin said:
I’m thinking this time I’ll have the car for a much shorter time,
4 years maybe
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To come up with an answer, you'd need to be able to estimate the value of the potential car after 4 years, and to choose an appropriate discount rate. The cost of buying and the lease terms should be possible to ascertain easily enough.
 
Actually, just took a quick glance at the nifti website. Seems to be a pretty limited selection of cars. Anyway, to lease a VW Arteon for 4 years costs €37.7k (no initial payment). Looking at the VW website, the RRP is €49.6k. Looks like the value of the car after 4 years will be a big factor in which is the best route financially.
 
Annieindublin said:
I’m thinking this time I’ll have the car for a much shorter time,
4 years maybe
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Buy a 4-5 year old hatchback or fastback (Mondeo hatchback). €14k will get you one like this. (quick search on Done Deal) Lots of space for a wheelchair and cheap to insure.
If your mother has mobility issues then picking a car she can get in and out of is important and that'll be down to her.

I'd also suggest that if you are the one driving her around you should sell her dead car and put the funds against your new car.
 
Do you know about this scheme?

Tax relief for drivers and passengers with disabilities

The Disabled Drivers and Disabled Passengers Scheme provides a range of tax reliefs for disabled drivers and disabled passengers.
www.citizensinformation.ie www.citizensinformation.ie


It will allow you to buy a new car, with no VRT and no road tax. Or you could get a UK car, and not need to pay the registration tax.
You would need to spend a bit of money on fitting an accesible seat to the car ( usually about 500 euros) or you could source a car which has already been fitted from the UK.

If you are the primary carer and person responsible for transporting your mother, you should be entitled to the exemptions. You can also claim back the duty on any fuel you use for her transport needs.
 
Allpartied said:
It will allow you to buy a new car, with no VRT and no road tax. Or you could get a UK car, and not need to pay the registration tax.
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You need a primary medical certificate to qualify.
From the link:
To qualify for tax relief under the scheme, you must have a valid Primary Medical Certificate.

A Primary Medical Certificate is a document that you can use to confirm you are severely and permanently disabled and one of the following applies:

  • You are completely or almost completely without the use of both legs.
  • You are completely without the use of one of your legs and almost completely without the use of the other leg to the extent that you are severely restricted as regards movement in your legs.
  • You are without both hands or both arms.
  • You are without one or both legs.
  • You are completely or almost completely without the use of both hands or arms and completely or almost completely without the use of one leg.
  • You are a person with restricted growth syndrome (dwarfism) and have serious difficulties with movement of your legs.
That's great because, ironically, the VRT costs an arm and a leg.
 
Annieindublin said:
Mum wouldn’t be in that category.
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If she needs a wheelchair, to get around, and can only mobilise for very short distances, then she would meet the criteria.
My Father in Law had both his legs and was able to move, with assistance, or the use of a walker, from a to b, short distances. But he was categorised as completely, or almost completely without the use of both legs. ( thats the bit that applies to elderly, immobile people).
You can apply through your local health centre and they will assess your mother as to her mobility. Generally, being elderly and immobile is classified as a permanent disability.
 
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