Q I’m looking to buy a new family car. There seems to be much better value available from private sellers – which is a draw for me as I’m working to a very tight budget. However, a friend of mine had a bad experience with a private seller recently, which has made me hesitant. Do you have any guidance on how best to approach this? Deirdre, Co Galway
A Buying a car is a significant purchase – as well as the cost, you need to bear in mind that buying an unsafe car is dangerous. Every year, the Competition and Consumer Protection Commission (CCPC) receives over a thousand calls from consumers reporting issues with second-hand cars – including those who have unknowingly bought crashed or ‘clocked’ cars.
Therefore, it’s important to consider a number of different factors and to make sure you carry out the essential checks before you buy.
The first thing to be aware of is that there are important differences between buying from a business compared to buying from an individual when it comes to your consumer rights and protections. You do not have rights under consumer protection law if you buy from a private seller and something was to go wrong.
Although price may be a key consideration if you are working to a budget, what may appear as a bargain now could end up costing you more if repair or replacement work is needed after you buy.
So before buying a second-hand car (from either a business or private seller), follow these simple steps and remember to carry out the essential car checks.
First, be aware that consumer rights don’t apply to private sales and watch out for disguised traders – professionals who illegally pose as private sellers. Search online for information about the seller – for example, check how many ads the seller has placed online. If he is selling a number of cars at once, this could indicate that he is a disguised trader and not a private seller.
Second, ask the seller to fill out the CCPC’s car history checklist (available on ccpc.ie) to ensure you have all the relevant vehicle information and have carried out all essential checks before buying.
Third, check the mileage on the odometer matches the car’s paperwork. The car’s previous mileage will be listed on its NCT paperwork.
Fourth, don’t be led by price alone – as lower cost doesn’t always represent value for money. Make sure to carry out the essential car checks, regardless of the price.
Fifth, get a second opinion. When checking out the car, bring along a mechanic or someone who is experienced with cars or buying cars.
Sixth, shop around. Check car buyers’ websites and magazines so you know the average price for the type of car you want, based on the specification, mileage and so on. Remember if it is too good to be true, it usually is.
Seventh, always try to pay by a traceable method – such as credit or debit card or bank transfer. Paying cash is risky as you will have no record or trace of your money if something goes wrong.
Q I received a gift voucher – of a sizeable value – for a local retailer last Christmas. Given the periods of lockdown since the start of the year, I didn’t have much opportunity to spend the full amount. I have just heard that the retailer has announced its closure. What does this mean for my voucher? I still have money left and had intended to spend it. Sam, Co Westmeath
A Unfortunately, you have very few protections if you have a gift voucher for a business that subsequently goes out of business.
Circumstances may vary, depending on whether the company has closed down, gone into liquidation, examinership or receivership – so check online or on the business’s website for more information.
Should the business have gone into liquidation and you have an unused gift voucher, you will be treated as an unsecured creditor.
This means that there is a strong possibility you may lose your money.
Look online or on the business’s social media accounts for details of the closure – as it may have a closing down sale, in which you could use the remaining balance of your gift voucher – but ensure you do so as quickly as possible.
Q I have managed to save a small sum of money over the past year or so. It’s currently in my savings account but given the low interest on saving, I’m considering investing it for a better return.
I’ve never invested before but I’ve heard of a number of people using online trading platforms and it sounds really simple. Are there any downsides to this or should I just go for it? James, Co Waterford
A Before making any form of investment, consider a number of different factors. For example, you will need to decide what level of investment risk you are comfortable with. Usually, the greater return you want from your investments, the greater the risk you have to take. You also need to decide how much of your savings you are willing to invest and for how long; the costs and fees associated with investing – and the tax you may have to pay on any growth or returns.
When it comes to online trading platforms, one of the main attractions is that they typically offer lower costs – in terms of accessing the stock market.
However, the majority of these online trading platforms operate on an execution-only basis. This means no professional advice will be provided to you before you purchase stocks and shares.
Also, some investment products available through online trading applications can be quite complex. This means you could run the risk of investing in shares that are completely unsuitable to your needs and could result in losses that you may not be prepared for.
There are tax obligations linked with the sale of investments through these platforms. The type and rate of tax payable depends on the type of income you receive from the sale. Therefore, if considering using an online trading platform, it may be useful to seek tax advice.
In general, before investing in any type of investment product, consider the level of risk you are willing and comfortable to take on.
Ask yourself if you can afford to lose money – and if so, how much can you afford to lose and what will happen if you lose some or all of your money after investing? Also, decide how long you want to invest your money for.
Generally, the longer you invest for, the greater the potential is to earn a higher return. However, you need to consider if you will need access to the money during the investment term and how quickly you would be able to access your money if needed.
Check if the financial adviser or investment firm you’re considering is regulated by the Central Bank – if not regulated and things go wrong, you may not have access to public complaints procedures and compensation schemes.
Finally, consider expert financial advice – particularly if you have limited knowledge of the financial product or where the product is more complex in nature.