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Is a PCP right for me in retirement?

I'm approaching 66 and recently had to retire. My state pension will be around €230 when it comes in March plus a small work pension of €57 a week. My car, an Audi A2, is a 2001 reg. It's showing signs of age and as it's an obsolete model services are expensive. I would have 3,000 maybe 3,500 Euros to put towards an upgrade. Can you advise me as to whether I should opt for a new car and a repayment plan or get a second-hand one?

Angela O'Sullivan

Angela O'Sullivan (Waterville)

Jan 2016 Filed under: finance

Expert answer

Hi Angela,

I think a PCP plan would be entirely wrong for you, because they really only work if you're intending to come back in three years' time to trade in again. I'm guessing you don't want to do that.

Your Audi is worth about €2,000 so put that together with your €3,000 and we're looking at a budget of around €5,000. That's great because that will get you into a 2007 Honda Jazz - one of the best small cars around. It's spacious, comfortable, frugal and above all reliable. You simply can't go wrong with one.

Another good choice is the Suzuki Swift. Your budget should get you a 2008 or 2009 model. It's not as roomy as the Jazz, but hugely reliable and lots of fun to drive. One thing though - beware of insurance. Irish insurers are being, right now (and please forgive the language) a shower of bastards when it comes to insuring cars of ten years old or older. Make sure you have a good insurance broker on hand for 2017 or 2018 when you have to renew...


Hybrid and electric cars are not the future...

This is not really a question, just a comment. I just don't understand all this hype about electric and hybrid cars. I live in an apartment, probably way more than half the world lives in apartments or cities where recharging is not feasible. It doesn't look like the future to me.

Cheers

Philip Donegan (Ballina)

Jan 2016 Filed under: hybrid

Expert answer

Hi Philip,

A very, very good point. However, I disagree with you on your broader 'hype about electric cars' comment - the only way we're going to be able to keep motoring, to keep some sort of private, personal transport going, is with electric cars. Now, whether that's with just batteries, or whether that's with hydrogen power or something else that hasn't yet been thought of, I don't know. But the days of digging up Jurassic forests in liquid form and burning them in engines is coming to a rapid close - it's not just about CO2 and global climate change anymore either; the Volkswagen scandal has shown that we've been slowly and insidiously poisoning ourselves with other gases from car engines too. Some 1,200 people in Ireland this year will die from respiratory illness brought on by pollution, a major multiple of those who will be killed in road accidents.

Your apartment point is well made though, and shows just what a period of transition we are currently in. A huge investment is needed to create an environment where electric vehicles can work simply and sensibly, and for all the efforts put in recently to install charging points and fast chargers, it's not nearly enough. Governments and energy companies, and the car makers too, will all have a major role to play in this, but it's just that no-one's playing enough of a role just yet.


I can't get insurance on my old Honda!

Hi,

Is it legal to increase the price of an insurance premium times five? I was paying €400 last year (seven years NCB plus for 55 per cent discount) for a 1999 Honda Accord. I've got letter from my current insurer (AIG), with a new quote for €1,998. When I rang them, they told me the reason was that my car is too old! Car passing NCT every year, no problems whatsoever, no convictions either. Another two broker companies and three individual insurers have declined me for the same reason.

Any ideas?

Joe Black (Dublin 18)

Jan 2016 Filed under: insurance

Expert answer

Hi Joe,

This is a serious issue at the moment and the Government is, typically, sitting on its hands over the matter. Insurers, beginning with Aviva, decided last year that, actuarially speaking, ten-year-old cars and their drivers were at higher risk of accident than average, and so decided to either (a) refuse to quote altogether, or (b) issue massive quotes that were effectively the same thing. Frankly, it's a scandal and of course, insurance being something of a cabal industry at the best of times, the other major firms are following suit. Sorry - that isn't actually of any practical help to you, but it's the facts of the matter.

The best suggestion I can offer is to find a really good local insurance broker and see if they can help you find a solution. Please do let us know how you get on.


Is the Dacia Sandero worth looking at?

Could you tell me if a Dacia Sandero is a good car... or should I stick with a Skoda Yeti? I'm looking at an ad on DoneDeal.ie

Thanks

Rose Watson

Rose Watson (Cappoquin)

Jan 2016 Filed under: choosing used car

Expert answer

Hi Rose,

The thing is that they're totally different cars. The Sandero is a small and very, very cheap, hatchback - about the size of a Ford Fiesta, but not as good to drive. It's cheap, cheerful and gets the job done, but that's about it. By contrast, a Skoda Yeti is a crossover SUV, much bigger than a Sandero, with a far larger cabin and boot, and is much better built and nicer to drive. It depends what you need - a cheap runaround? Or something more sophisticated?


Hyundai ix35 or Ford Mondeo Zetec?

Can you please compare the Hyundai ix35 to the Ford Mondeo Zetec? Both diesel 2012.

Tom O'Neill (Cork)

Jan 2016 Filed under: choosing used car

Expert answer

Hi Tom,

Totally different cars so it's quite hard to compare them directly. The ix35 is one of the better crossover SUVs - it's roomy and very nice to drive and hugely reliable too.

The Mondeo was always one of the best large saloons around, and that fourth generation model was a good one - solidly built (although you need to keep an eye out for niggling electrical problems) and really great to drive. Plus, both the cabin and boot are massively spacious, even more so than those of the ix35.

So it depends what your priorities are. Like a high-riding car and fancy something with 4x4 styling? Get the ix35. Not bothered about SUVs but want something truly rewarding to drive? Get the Mondeo.


Toyota Corolla or Skoda Octavia?

Thinking about buying a 2008 Toyota Corolla or Skoda Octavia, similar mileage, 1.4 petrol. Thoughts?

Brendan Toohey (Drogheda )

Jan 2016 Filed under: choosing used car

Expert answer

Hi Brendan,

Both decent cars. Go with the Corolla if reliability is your overriding priority (although the Skoda's hardly fragile or anything) and go with the Skoda if space and a big boot are your priorities.


What is the best 'scrappage' deal this year?

What is the best scrappage deal for cars this year?

T Treacher (Galway )

Jan 2016 Filed under: scrappage

Expert answer

Hi there,

There are many, with Ford, Nissan, Opel, Toyota and Hyundai, for instance, all having notably good offers. You can get as much as €4,500 'scrappage' (not really scrappage, but actually a trade-in bonus really), but it depends on which model you're trading in against.


How much to tax a 1.4-litre Volkswagen Polo?

How much to tax a 2002 Volkswagen Polo 1.4 TDI diesel?

Thanks

Naomi Quinn (New Ross)

Jan 2016 Filed under: taxation

Expert answer

Hi Naomi,

Pre-2008 cars are taxed according to their engine size, so that Polo, which is actually 1,422cc, falls into the 1,401 to 1,500cc band, at €413 a year, or €229 for six months and €116 for three months.


Any pointers on the Nissan Tiida?

My budget for a car is €6k approx and the Nissan Tiida (2008 or 2009) 1.6 four-door manual petrol seems good value for money. I would do low mileage per year, mostly city/urban driving.

Any pointers?

Rita O'Keeffe (Dublin 15)

Jan 2016 Filed under: choosing used car

Expert answer

Hi Rita,

The 1.6 is the right choice for city/urban driving right enough and the Tiida is a reliable old thing, and was one of the first cars to come with Bluetooth phone connection as standard. It's not very interesting though...


Are electric cars a real option now?

Are electric cars a real option now? Looking to purchase a second hand car 2012 upwards. What do you think?

Paul Mccabe (Kilkenny)

Jan 2016 Filed under: electric cars

Expert answer

Hi Paul,

Yes, and no. And a bit yes. It still depends on your lifestyle and driving habits. Lots of short journeys, mostly around town? Don't mind taking the time to plan long journeys carefully and be prepared to take breaks for charge ups?

Things are getting dramatically better though. Nissan has just updated the Leaf with a new 30kwh battery (read our review of it here) that extends its range to around 250km, which is a lot more useful, and if you're suitably loaded a Tesla Model S can go for 500km between charges.

If you're not quite ready to take the full electric car plunge, how about a plugin hybrid? Short hops under electric power with a petrol engine for longer journeys. Try the Volkswagen Golf GTE, Audi A3 e-tron, Mitsubishi Outlander PHEV or a Volvo XC90 T8.

However, if you're looking for a second hand car, your options with electric power are severely limited, as sales have been slow so far.