Balancing the budget for higher costs

HELPDESK: Answering all your motoring queries

From R Sweeney: I've been told that the average time people kept new cars in Ireland was three years. Has that changed, or is it going to change given the economy? Should I hold on to my car for longer?

Any decision to sell or retain your car should really be based on your household budget. Not only do you have to consider the cost of change, but also the cost of finance involved if you are going to get a new car.

It comes down to how much you have to spend on your monthly motoring budget.

The average ownership period for new cars at the moment is 42 months. Speaking with David Shannon of Toyota Ireland last week, he estimated that rising household costs could push that up to 48 months but not much more.

With rising mortgage payments people may have less cash to spend on financing their car so they might wait until times get better, or else opt for a lower specification car.

That said, you are going to encounter an increased depreciation cost by holding on to the car for longer.

It's worth speaking to your local dealer to see what he will give you on your current car, and in turn what you could expect for your car in another year or two.

Perhaps a lower priced new car would be better than waiting and suffering increased depreciation. People often find that letting the time slip makes it harder to get back into a three year cycle later.

From A Byrne: There is a gorgeous little two-seater driving around near Malahide, but I can't seem to identify what it is. I've only seen it on the road, but the name on the back says something like Cogen or Cogin. The badge is unclear. It's relatively new and has a hard roof but it's also a convertible. Any ideas what it might be and if they are still on sale?

I think the car you are referring to is a Daihatsu Copen, and yes they are still on sale. They are powered by a 1.3-litre petrol engine, so it's economical to run. Prices start at €18,850 for the regular version, and €19,750 with leather trim. With 140g/km of CO2, it falls into band B, which means that annual motor tax is just €150.

From TA: When buying my first car recently, the guy I bought it off added €50 for administration fees. When I asked what this meant he said it was the cost of doing the change of ownership paperwork. Is that normal?

No. There is no charge for registering change of ownership details at Motor Taxation Offices or at the Vehicle Registration Unit so it is not an official Government fee. You've actually paid him for filling out the forms. I'd look for that money back.

From F Lally: I'm considering either a Mini Clubman or a Volvo C30. I like them both, and they each have their own positive features. Both are as practical as I need. Any advice?

They are both strong contenders, and my money would be on a diesel purchase for both.

The Volvo has a distinctive look but if you already have it on your shortlist, then you're clearly a fan. The 1.6-litre diesel engines is the best option in both when it comes to value. For Volvo, the C30 1.6D can be had for €26,900 while the Mini Cooper D Clubman is priced at €25,764. Further good news in terms of motor tax: for the C30 its €150 while on the Clubman its €100.

The Volvo has more bootspace and a better interior trim; the Clubman has more general appeal and will hold its value well. In terms of performance, the Clubman has the beating of the Volvo.

It's a tough call, and the best advice would be to get the cost of change at each dealership and see which one gives you the best value. There may also be delivery issues you might want to iron out if the cars are not in stock.

From M Hamilton: Given the growth of biofuels of late, is there still a warranty issue with converting your car to use biofuels, like vegetable oil?

Yes. Modern cars can take a mix of up to five per cent of biofuels but these are more corrosive than regular fuels so car firms will not recognise warranty claims for damage caused if you use more than the official mix. Contact your local dealer for specific details on what your engine can take.