How to budget for your next car (new or used)
Even if you’re not in the market for a brand-new car, you might want something fresher, bigger or simply easier on the eye. Whether you buy new or used, the key is knowing what you can realistically afford before you splash out. This guide covers payment choices, total cost of ownership, common finance options and what different budgets typically buy in Ireland.
Payment choice
Monthly payments or a lump sum?
Decide first whether you’ll buy outright or use finance — plenty of lenders now cover used cars too. Financing can spread costs over a typical two-to-four-year term, but some products need a deposit and you may not own the vehicle at the end unless you settle a final amount.
Costs beyond the price
Total cost of ownership (TCO)
It’s easy to focus on the purchase price or monthly repayment. Don’t forget the running costs that come with any car:
- Insurance
- Fuel or electricity
- Consumables (tyres, wipers, brake discs/pads)
- Annual motor tax
- Servicing, repairs and general maintenance
Ways to pay
Finance options and their hidden costs
Four common routes for new and used cars in Ireland:
PCP (Personal Contract Plan)
Deposit + lower monthly payments over 2–4 years with a guaranteed future value. At the end: pay the balloon to own, hand the car back, or use any equity to move into another deal.
- Pros: Lower monthly cost; flexible end-of-term choices.
- Cons: Mileage/condition limits; final balloon; more complex terms.
HP (Hire Purchase)
Deposit + monthly payments that clear the full price. No balloon; the car is yours once the final instalment is paid.
- Pros: Simple; no mileage cap; ownership at the end.
- Cons: Typically higher monthly payments than PCP.
PCH (Personal Contract Hire)
Fixed monthly rental; you never own the car. Common for new cars, less so for used.
- Pros: Low upfront cost; predictable bills.
- Cons: No ownership; mileage/condition penalties possible.
Personal loan
Borrow the full amount from a bank/credit union, buy the car outright, then repay the loan in fixed instalments.
- Pros: You own the car from day one; no mileage rules.
- Cons: Payments may be higher; missed repayments risk repossession.
What to expect
What will my budget allow?
Pricing depends on age, mileage and spec. Treat these as ballpark guides.
Up to €10,000
Often an 8-year-old supermini with <100,000km (Peugeot 208, Kia Rio, Renault Clio, Honda Jazz). Larger or premium-brand cars exist at this price, but they’ll usually be older (2010–2014), higher-mileage and lower-spec.
€10,000–€20,000
Newer, lower-mileage everyday models (2019+ Captur, Corsa) and some premium badges (e.g. Audi A5, VW Touareg) typically with higher miles. Remember premium often means higher TCO.
€20,000–€30,000
Plenty of near-new mainstream SUVs (e.g. Hyundai Tucson) and well-specced superminis with very low kilometres. At this level, some brand-new “budget” models may also be in reach.
Examples are indicative; condition, history and supply will vary.
