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All hail the Scrappage Scheme for huge jump in new car sales?

July 20, 2010

Hi folks, alas it has been a while since we’ve been chatting, but at least on returning it’s to discuss some news of the more positive variety; namely the huge increase in volumes of new private cars licensed in June 2010, comparing year-on-year with June 2009. Briefly, there were 8,314 new private cars licensed in June 2010, compared with 4,833 in June 2009, an increase of a hefty 72.0%!. Full details are available from the Central Statistics Office but some quick, interesting snippets to mention include;

Of the 8,314 new private cars licensed in June 2010, 2,550 (30.7%) were petrol and 5,447 (65.5%) were diesel.
The highest number of new private cars licensed in June 2010, classified by make, was Ford (1,205) followed by Toyota (984), Volkswagen (944) and Renault (898).

So the love affair with Ford continues! On that first point, it appears that we’re now a diesel-guzzling bunch like our European counterparts, who have known the merits of diesel driving for many a year. This came as a slight surprise to me; I thought we were still very much ‘petrol heads’ here in this part of the world. Those reliable, economical and ever-more sophisticated diesel options have clearly convinced the petrol masses to switch over. Plus, the lower running costs and generally longer vehicle life are always going to be key purchasing factors on choosing diesel. The VW Golf Tdi , Ford Focus Tdci and such like are out in force…

The question remains as to what is behind this huge uptake on new cars? First of all, we are simply comparing against a very low base, namely the worst year in new cars sales (2009) in recent memory. It’s hardly that as a population at the moment we have handy extra disposable cash for conspicious consumption just sitting around in a biscuit jar or under the mattress. This year, dealerships have been offering better prices & financing deals in light of the massive slow down in new car sales over the past 18 months. There’s ample suggestion in the recent national media coverage regarding this increase in new car sales that it’s the Government’s car scrappage scheme which is the main driver of this increase. The fact that sales have remained strong into June this year (typically car sales ’tail off’ after the first 3 or 4 months of the year), compared to the same time last year, would suggest that the car scrappage scheme has had some impact, but exactly how much of this growth in sales can be attributed to it?

While the scrappage scheme clearly has contributed (e.g. note various manufacturers trumpeteering of the deals available on foot of it, such as Ford’s ‘Save €3,000′ with Car Scrappage Scheme), I personally haven’t seen it recorded by the CSO, SIMI or anyone else that there is clear statistical evidence of this. It would be useful to know exactly what percentage of these new private car sales to date in 2010 can actually be attributed to the scrappage scheme. I’m going to go hunting for a clear answer on that. I’ll keep you all posted on how I get on. We just wouldn’t want to be giving the Government all the credit without the facts, now would we!!??

Posted in Car Sales, insurance, Questions, Saving money | Comments Off

Finding Good Value in Second-Hand Cars

January 18, 2010

Thinking about buying a second-hand car? What brands will you find best value in? Here’s a little dig around what’s currently available out there in two-year old cars and the kind of value that is to be had.

The used car website, carzone.ie is probably one of the bigger websites in this space in Ireland. They currently have about 40,000 used cars listed.

The most popular makes of cars there are:

Ford (4,022 cars listed)
Volkswagen (3,532 cars listed)
Toyota (3,365 cars listed)
Nissan (2,844 cars listed)
Opel (2,549 cars listed)
BMW (2,395 cars listed)
Renault (2,120)

We love our Ford cars here in Ireland and in particular we love our Mondeos. One in five of the Fords listed on Carzone is a Mondeo, and there are 214 alone with a 08 reg. There really is great value to be had here. The most expensive 08 Mondeo on offer is priced at €29,950, while the cheapest is listed at €12,500.

When it comes to Volkswagens, the Golf is really the flag bearer. One third of the Volkswagens for sales on Carzone are Golfs and the 08′s range in price from €33,155 to €11,900. Passats are also very popular and these range in price for a 08 from €28,750 to €14,950.

Toyota and “reliability” go hand in hand and between the Corolla and Avensis the family car market has been sown up for years by the Japanese brand. You’ll pick up a 08 Corolla for anywhere between €19,500 and €11,950. An Avensis can be had for prices ranging from just €21,500 to €13,950.

At the smaller end of the market there is great value to be had in buying a Nissan Micra. Ranging from €13,600 to €7,250, that’s a differential of 50% from top to bottom of the range in the ultimate small car.

Opel’s top car for 2008 is the Astra. The slightly sportier models start at €26,000, but you’ll also pick up a decent model for €9,950. There are 261 Astras for sale currently which means that there is plenty of opportunity for negotiation.

Shifting up a gear to the BMW doesn’t meant that here is any less value to be had. You can buy a 3 Series for as much as €52,950 or as little as €17,000. In fact, that price difference means that BMW of all the cars is probably where the best value is to be found.

Last in our list is Renault and their most popular car is the Megane. You’ll get your hands on a 08 cabriolet for €21,950, but prices go as low as €9,349. The Laguna is also popular and these range from €28,500 to €10,450.

Considering all of these price ranges on the most popular second-hand cars in Ireland there is an average difference of 54% between the most expensive and the least expensive. And with so many on offer there should be plenty of haggle room.

Posted in Saving money | Comments Off

No Nonsense nuptials part 1

November 9, 2009

It’s a bleary Monday morning, the birds are coughing in the trees and I face the dual dilemmas of planning a No Nonsense wedding and writing about it. To be honest, I’m not sure which task is more intimidating :p.

Photo owned by karindalziel (cc)

Well, since it’s a No Nonsense wedding, the theme here is going to be affordability without sacrificing quality. (I was so pushing for a Doctor Who theme, I mean David Tennant is finishing up, he’d so be free for an appearance! But my fiancé was having none of it…. huh… girls)

I’ve been searching high and low for resources to help me in this endeavour and have found some interesting sites. The best by my estimation has to be The Frugal Bride. While it’s a Canadian site, it is packed full of hints tips and resources to help your wedding go smoothly and without expense. I was thoroughly impressed.

There are also a myriad of lists containing money saving tips for your big day, such as this one at about.com.

For our part we’re trying to keep it simple. We’re going to have a civil ceremony at a hotel, and then the reception in the same hotel. No moving people from a church to a reception, no decorating a church. None of the expenses that come with a church wedding. Of course, Civil weddings don’t suit everyone. We had decided on a civil ceremony long before we thought about saving money, it just happened to suit all our needs.

The wedding party will also be fairly small. Two of my closest friends on my side, her oldest friend and sister on her side. The Guest list….. Well… that’s a monster for another slay. But we’ve taken the first step and we’re on track so far. Will I crack under the pressure? Will my fiancé kill me? Am I going to finish every post with a series of questions?

The answers to none of these questions and more are on the way!

Yours,

The Prudent Groom

Next Time ….. The Venue

Posted in About us, Humour, Saving money | 3 Comments »

The No Nonsense wedding!

November 2, 2009

Observant readers will have noted that I became engaged earlier in the year. About 3 months later (after the shock had worn off), I sat down and began thinking about the wedding. I know some people might think it too soon, but I’ve never been one to sit and wait.

Photo owned by Helga’s Lobster Stew (cc)

So I’m having a wedding….

… Next Year …

… In May.

That’s a little scary… isn’t it? And more than one person has pointed out that this is the worst time economically to have a wedding, but I’m determined (love can do that to you… fear too… might be a correlation there). So here it goes, a No Nonsense wedding. Can I have my big day without a big budget?

Follow me dear readers as I tread that perilous line between a happy bride and a happy bank balance. As I plan out the money saving, bouquet waving, Aisle paving No Nonsense nuptials.

Yours,

The Prudent Groom

Posted in About us, Humour, Saving money | 9 Comments »

Good Luck Trying to Get a Car Loan

October 16, 2009

Back in January we posted about the best offers in car loans from the various institutions in Ireland. At that time the market was very competitive with all the lending institutions active in this space. However, today the market is like a desert in comparison as all but three of the top ten lenders have stopped offering loans on new or used cars.

Car loans no longer on offer:

Darragh pointed out that Tesco Finance, who had the best offer in January, are no longer offering loans in the Irish market.

First Active of course are no longer trading since they have been merged with Ulster Bank.

Bank of Ireland are no longer offering car loans but are providing car finance arrangements – similar to hire purchase – but only if you call in to a branch.

FinanceDirect.ie have disappeared altogether and CarFinance.ie are no longer providing “options for finance”.

RaboDirect have stopped offering any type of loans at all.

So who’s left:

Only three institutions, Halifax, Ulster Bank and AIB, are still offering car loans in the Irish market (from what I can see at least). Note that Permanent TSB are offering a finance/hire purchase arrangement at fairly competitive rates.

I set out to borrow €20,000 over 5 years, with no payment protection or payment holidays. Was looking for a fixed rate. The figures are all pulled directly from actual quotes or examples on each of the providers’ websites.

In reverse order the best rates are:

3. Halifax – 11.5% APR €434.26 per month, total cost of credit is €6,055.35

2. Ulster Bank - 9.9 % APR, €419.54 per month, total cost of credit is €5,172.40

1. AIB – 8.05% APR, €393.20 per month, total cost of credit is €3,592

So AIB win with their APR of 8.05%. If you are aware of anyone else out there offering car loans today please let us all know.

Posted in Saving money | 4 Comments »

Best Deposit Rates in Ireland – October 2009

October 2, 2009

Back in March I wrote a post reviewing the rates on offer for regular savings accounts. It has been one of our more popular posts so I decided I’d better go back and check that all the information is still correct.

Not surprisingly a lot has changed over the past few months. Pretty much all of the rates have disimproved. Bank of Ireland had topped the table with a return of 7.0%, but the best they’re offering today is 4%. First Active has since been taken over by Ulster Bank so they’re not opening up new savings accounts.

To recap, here are some things I’m looking for:

I want to save probably not more than €500 in any month, so am looking for the best rates for smaller more regular savings.
I want flexibility in the amount I put aside. I might set up a direct debit, but will probably see how I’m fixed each month before deciding how much to put aside.
I may want instant access to the savings, but am happy to live with a limit on this per year. Some institutions will give me instant access but only if I limit the number of withdrawals in a year.
I don’t want any minimum terms on the savings. I think that’s covered by the previous point, but just to be clear; I’m not sticking this away for 5 years as I suspect there may be a few rainy days within the next few years…

So, in reverse order of sounding like a good deal here’s what’s on offer:

10. Rabodirect.ie “Savings On-Demand” earns 2.0% AER
No limit on the amounts saved and provides instant access to your money without any penalties. They admit that it “might not be the highest rate around” but they’re leaning heavily on the fact that they are the only triple A rated bank in Ireland.

9. An Post “30 Day Notice Account” earns 3.0% CAR
This is a compound annual rate which is calculated daily and credited at the end of the year. No fees or charges. Don’t think I could wait the 30 days to withdraw, so that’s probably not an option for me anyways.

8. AIB “Regular Savings Account” earns 3.5% AER
Allows you to save anywhere between €10 and €500 per month. You can withdraw anytime you want without penalties. It guarantees to give the ECB +2.50%, but for the first 12 months only.

7. Halifax “Flexi Saver” earns 3.75% AER variable
No monthly lodgement restrictions, but you need to keep the balance to less than €10,000 in the first year to get this introductory rate. Instant access to the funds and no penalties. Anything over €10,000 and everything after the first year earns 2.0% AER.

6. Bank of Ireland “DualSaver Account” earns 4.0% EAR
Allows you save up to €500 per month, and €5,000 per annum at this rate. Anything greater than €5,000 and the EAR reduces to 1%. You can also lodge lump sums up to €20,000 per annum, but once again anything over €5,000 only earns 1%. Seven days notice is required to withdraw.

5. Ulster Bank “Regular Savings” earns 4.0% AER
Interest paid quarterly. You can save up to €500 per month (a little restrictive) and withdraw your money whenever you need it. Maximum allowed in the account is €100,000 – no worries there.

4. Permanent TSB “21 Day Notice Regular Savings” earns 4.0% AER
I could probably live with the 21 day notice period to withdraw my money if the rate was a bit better. Maximum monthly deposit is €1,000 and the maximum balance is €50,000.

3. Irish Nationwide “Regular Saver Deposit Account” earns 4.35% AER
You can lodge anywhere from €100 to €1,000 per month, or upto €2,00o if you open a joint savings account. The current rate which is made up of ECB + 3.35% is only guaranteed till December 31st this year and from then on it reverts to ECB +1.0%. You can make two withdrawals in a 12-month period.

2. EBS “Family Savings Account” earns 4.5% AER
This savings account allows you to put in between €100 and €1,000 per month for a fixed rate of 4.5%. This is the only account that guarantees a fixed rate for the entire first year. You can withdraw once during the year for those rainy days. Interestingly, there’s no stipulation that you need to be a “family” to apply.

1. Anglo Irish Bank “Regular Annual Saver Account” earns 5.0% AER
There’s no minimum, but the maximum monthly contribution is €1,000. You cannot withdraw in the first 6 months, but after that there is no limit on the number of withdrawals. Anglo Irish Bank are hungry for business hence they currently have the best deal on the market.

Note that terms and conditions will apply to the figures and notes above and you should read all these carefully before making any decisions. I’ve compared like for like as best I can. The AER/EAR/CAR figures I believe are all comparable. Oh, and I’m not a financial advisor.

Don’t forget that the Deposit Interest Retention Tax (DIRT) went up in April from 23% to 25%. This means that you’ll have to pay 25% of any interest you earn to the government.

Posted in Saving money | 6 Comments »

Surviving IKEA

September 18, 2009

I’ve been once to the Belfast IKEA and after the humiliation and despair of getting lost in that particular furniture store for 20 minutes I swore I’d never go back. The temperature has been gradually rising in our house as her good self builds up to a visit to the new store in Ballymun. Needless to say my protestations that there’s no such thing as a “spin” to IKEA are falling on deaf ears.

Photo courtesy of Library Mistress (CC)

Since it seems that there is no cure for IKEA-addiction it is probably worthwhile developing some survival strategies:

Survival tip 1 – Pretend it’s a computer game

Matthew Baldwin calls IKEA a “fully immersive, 3D environmental adventure that allows you to role-play the character of someone who gives a shit about home furnishings”. He suggests that you navigate your way through IKEA as if it were an alternate reality adventure. Your mission is to successfully traverse the various worlds within IKEA overcoming the obstacles along the way and emerge with your life (and sanity) intact.

Knocking down as many other customers as possible in the car park is a good start – there’ll be fewer people in the store to block your way! He also suggests grabbing some scented candles in the Kitchen area which, while non-lethal, will when lit stun those around you with Ye Olde Timey Stench. This approach will not shorten your stay in IKEA, but you might just emerge with a will to live.

Survival tip 2 – Pretend you’ve put your back out

The real reason most of us men are brought along to IKEA is not for our valued opinions on the colours of lampshades or the shape of sofas. Nope. We’re really only there, according to Elizabeth, for our “muscle”. IKEA furniture is very well packed and therefore small but very heavy. This is the one store where the girls actually do need us – the irony is very stark here as it is the last store on earth most of us actually want to be.

So, when you arrive out to IKEA and are asked to load the first large item onto the trolley; put your hands on the item, start to lift it down and then let out an unmerciful scream – AAAAARRRRGGGGHHHH! – holding the small of your back at the same time. If you pull this off, there’s a good chance you’ll get home to watch the second half of match.

Survival tip 3 – Breadcrumbs

It worked for Hansel and Gretel so there’s no reason it won’t work for you. IKEA uses arrows to direct you around the store. It’s a one way system that is designed to confuse and daze and ultimately results in you ending up at a checkout with thousands of euro’s worth of stuff that you don’t need and probably can’t afford.

Buy yourself a bag of breadcrumbs and drop them as you move through the IKEA labyrinth. That way, if you hit panic point and need to make a quick exit you’ll be able to find your way back easily. Alternatively, if you’ve been there for eight hours and forgot to have breakfast you can sit in that kitchen, which ”looks as good as it thinks”, that you are just about to buy and have lunch.

Posted in Humour, Saving money | 9 Comments »

Comprehensive car insurance for only €225

September 4, 2009

We don’t talk about ourselves very much here on this blog but I thought it opportune to share with you just how much good value we are. You’ve heard the ads on the radio and you know that we don’t offer cover for attacks by zombies in Cork, bears in Cavan or insurance brokers anywhere in Ireland. What we do try to offer is the lowest cost car insurance without all the extra bits and bobs that most of us don’t really want or actually use.

In case you haven’t heard it, here is our latest radio ad:

Here’s how our car insurance works. If you have a car worth a couple of grand that you’re not particularly worried is going to get stolen or burnt out, then Third Party cover is all that you need to get you on the road. This is the legal minimum cover required to drive. If you were a 30 years old lady girl, living in Dublin, driving a 1.4 Golf the annual premium would be €156.57. Now that doesn’t come with breakdown assist or windscreen cover, but is designed to get you on the road for the lowest possible price.

So let’s say that Golf is worth seven or eight grand. You’ll want cover for fire and theft and even cover in case it gets a bump. Comprehensive cover will cost our friend here just €279.75. I don’t believe there is any other insurance company that will beat that.

Now, it actually gets better:

Firstly, for that €279, our lady in Dublin can add on her partner or hubby at no extra charge, provided (like herself) he has a full clean driving licence, full NCD and is around the same age as her. That’s two people insured for the price of one.

Secondly by adjusting the claims excess she can bring down the premium further. The default excess on that policy is €500. This means that if there’s a claim we will pay the full cost less €500. You can reduce the excess to €250 or increase the excess up to €2,000. If she chooses the latter option she can bring her premium for Comprehensive cover right down to €225.

So that’s Comprehensive car insurance for just €225. Stick that in your pipe.

Nearly forgot, you can get a quote here yourself. It takes five seconds and there’s no strings attached, or zombies.

Posted in A guide to insurance, About us, insurance, Saving money | 6 Comments »

Calculating VRT Payments on an Imported Car

July 24, 2009

For those thinking of buying a used car, importing from Northern Ireland or the UK is an increasingly popular option. The VRT or Vehicle Registration Tax that you need to pay to the Revenue Commissioners can add up to one third onto the price, so it is worth figuring out in advance what you’re going to have to pay.

Photo by kevingessner (cc)

The rules for VRT changed in July 2008 and are now based on a combination of CO2 emissions and the open market value of the car. For cars registered prior to the change VRT is calculated based on a combination of the the engine size of the car and the market value.

This table outlines the VRT rates that apply for the different categories of CO2 emissions. The VRT paid is calculated as a percentage of the OMSP (Open Market Selling Price) for the car:

CO2 Emissions (CO2g/km)	VRT Rates
0 – 120g	14% of OMSP
More than 120g/km up to and including140g/km	16% of OMSP
More than 140g/km up to and including 155g/km	20% of OMSP
More than 155g/km up to and including 170g/km	24% of OMSP
More than 170g/km up to and including 190g/km	28% of OMSP
More than 190g/km up to and including 225g/km	32% of OMSP
More than 225g/km	36% of OMSP

The Open Market Selling Price for the car is a figure that Revenue determine. While there is an appeals process where you can challenge the Revenue on their estimation, you can only lodge an appeal once you have paid the initial amount demanded by the Revenue. Suitable evidence upon which to base your appeal might include a signed dealer opinion of the price or copies of advertisements by dealers in Ireland for similar vehicles.

Figuring out the CO2 band for a used car is not often straight-forward as in most instances the CO2 emissions are not identified in the advertisement for the car. These details are now listed on the registration cert for a car so you can ask the seller for the information. Alternatively you could head over to the car manufacturer’s website to check out the specifications for the car you are looking to purchase.

The most reliable place to go however to find out what the Revenue will intend to charge you is to their own VRT calculation tool on ROS.ie. Simply plug in the specifications of the car and they’ll come back to you with how much they’re going to charge you.

One last thing to keep in mind is that the Revenue insist that you must pay your VRT within 24 hours of bringing the car into the country. The revenue will give you your new car registration and you then have three working days to have the new reg plates put on your car. Although you’d wonder how well they police that given the number of foreign reg cars in the country on an ongoing basis.

Further information and relevant forms are all available on the Revenue website.

Posted in Questions, Saving money | 11 Comments »

Money saving extremes

July 10, 2009

We’re all for saving money here at nononsense, but even we were surprised at some of the extreme measures people will take.

The lendingclub blog has 7 (Slightly Crazy) Ways to save money, they’re all a bit too far for my tastes. Especially the one about unplugging everything… I mean… then how would I blog?

On the slightly more serious side over at early retirement extreme is a list of 25 money saving tips. This site is run by a guy who has achieved financial Independence and semi retirement, at the age of 33, all through saving money and reducing expenses, now that’s quite an achievement. In an especially nerdy moment he recommends using Linux rather than Windows operating systems. A very good idea since Linux is open source and free for anyone to download and use, and mirrors most of Windows functions…. but I’m afraid I’m a little too attached to my copy of XP to part ways just yet.

A little closer to home, just across the channel, lives Captain Frugal and his Money Saving Blog! He takes a humourous look at 30 extreme ways to save money. Personally I’d skip the part about not washing.

And the absolute winner, it has to be said, is Bankrate.com. They’ve compiled a list of 20 of the strangest money saving tips submitted to them. This list comes with the disclaimer “Some are illegal; some could be dangerous to your health. But mostly, they were too much fun to ignore.”

I guess the moral is, that we’re all for saving money, but you can go too far.*

Extreme insurance savings

*Note: Nononsense insurance does not condone the use of golf clubs, or any other piece of sports equipment, for use in financial negotiations. No insurance agents were harmed in the making of this blog.

Posted in Humour, Saving money | 6 Comments »

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