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    • Manny303
    • By Manny303 9th Jun 17, 1:35 PM
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    Manny303
    Paying off debt need to change car, advice?
    • #1
    • 9th Jun 17, 1:35 PM
    Paying off debt need to change car, advice? 9th Jun 17 at 1:35 PM
    Hi

    So I'm looking for some advice this is my first post here. I have about £12000 of credit card debt which I am trying to pay off.
    I currently drive a mazda mx5 and payments are £240 a month and I am a year into a 5 year HP agreement. I want to get rid of the car to reduce my monthly payments and also me and my partner plan to start a family next year so I want a car that is family friendly but cheaper than I am paying now. I have thought of these 3 options and wondered people's advice on the right one. I will be getting a loan to pay off my car and then selling it privately so I don't lose so much money, but I will still lose around £1000 which I will need to pay back. So options:

    1. Buy another car like a seat leon for £7500 this would suit my needs and be reliable, payments would be around £170 a month and I could keep this for several years.

    2. There may be a possibility of Getting a car with 12 months MOT for £450. But I would need to get another car when starting a family and also this car could be unreliable or cost a lot on parts if goes wrong.

    3. Buy another car but for less such as around £3000-£4000 hopefully can may off in a couple years so no car payments. But would need this to also be suitable for a family and reliable. Not sure how reliable a car can be for this much? And how long it would last?

    I need a car to get to work everyday as live around 20 miles from work, I also have to drive up the country may be once a month.

    Any advice appreciated
    Last edited by Manny303; 10-06-2017 at 7:10 AM.
Page 1
    • nkkingston
    • By nkkingston 9th Jun 17, 2:23 PM
    • 419 Posts
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    nkkingston
    • #2
    • 9th Jun 17, 2:23 PM
    • #2
    • 9th Jun 17, 2:23 PM
    Have you seen what the costs are like it you hand it back? It may work out cheaper than taking out a loan and selling it, especially when you factor in the interest on the loan.

    If you have the option of a free car, take it. Save the money you're currently spending on car payments to cover repairs. If it holds up well, when you come to start a family you'll be able to afford a safe secondhand car with the money you've saved. No car payments ever again!
    Mortgage
    June 2016: £93,295
    June 2017: £82,116.67
    • anna_1977
    • By anna_1977 9th Jun 17, 3:19 PM
    • 564 Posts
    • 775 Thanks
    anna_1977
    • #3
    • 9th Jun 17, 3:19 PM
    • #3
    • 9th Jun 17, 3:19 PM
    Also, what is you are not able to get a loan to cover it?

    I would take the free car as nkkingston has suggested and review if and when you start a family
    • Manny303
    • By Manny303 9th Jun 17, 7:00 PM
    • 2 Posts
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    Manny303
    • #4
    • 9th Jun 17, 7:00 PM
    • #4
    • 9th Jun 17, 7:00 PM
    So the free car may not work out as it has no Mot so may need some work.
    So is it best to buy a car for say under £1000 and just use it for a year or so. Or buy a more expensive reliable one.
    So stuck with what to do.
    • Profligate
    • By Profligate 10th Jun 17, 1:41 PM
    • 33 Posts
    • 35 Thanks
    Profligate
    • #5
    • 10th Jun 17, 1:41 PM
    • #5
    • 10th Jun 17, 1:41 PM
    [QUOTE=Manny303;72673750]Hi

    So I'm looking for some advice this is my first post here. I have about £12000 of credit card debt which I am trying to pay off.....

    Any advice appreciated

    Hi Manny, if you are serious about paying off the £12k CC debt (a fairly considerable sum especially if you are not particularly well -paid), I would suggest you research cheaper cars.

    I would imagine for £1K you could get a pretty decent runner.

    This would then free up some cash, presumably, for you to throw at your CC debt - enabling you to pay it off (as opposed to simply trying to ).

    If you take this route, you might find that you have paid off, or substantially reduced, your CC debt by the time you and your partner are ready to start a family- which will mean greater financial freedom. (and better ability to weather maternity/paternity leave and probable reduced income...)

    If you post a SOA, it may become apparent where you could free up more income by reducing expenditure/getting a better deal etc
    Good luck
    • enthusiasticsaver
    • By enthusiasticsaver 11th Jun 17, 4:26 PM
    • 3,559 Posts
    • 6,223 Thanks
    enthusiasticsaver
    • #6
    • 11th Jun 17, 4:26 PM
    • #6
    • 11th Jun 17, 4:26 PM
    I think if you are trying to start a family the car should not be looked at in isolation. £12k of credit card debt is also substantial and children are expensive in terms of lost earnings when your partner is off on maternity leave and then in childcare if she returns to work.

    I think in your circumstances I would not pay out for an expensive car but seeing you need the car for work then paying out for something which is going to need a lot of work on it is not a good move either. You need to look at what you can afford should you lose an income so even £170 per month in addition to credit card repayments may be too much. Personally I would go for a reliable car though rather than a rust bucket and maybe delay having a family until you are more on top of your debt unless time is of the issue (ie your partner is late 30s when fertility may be not be so good.)
    Debt and mortgage free and saving for early retirement
    • EssexHebridean
    • By EssexHebridean 12th Jun 17, 12:30 PM
    • 7,329 Posts
    • 38,648 Thanks
    EssexHebridean
    • #7
    • 12th Jun 17, 12:30 PM
    • #7
    • 12th Jun 17, 12:30 PM
    Pardon me but I'm confused here. There are references to a free car in replies, but not in your OP - have you edited your OP to change the details you've given?

    You definitely don't need to spend £4k on a replacement car - and far less 7k! MrEH's last two cars have both been a round about the £2k mark - both have lasted him years and as soon as they reach the point of costing too much in maintenance we've said enough, and chop in for the next one.

    To be honest a £450 car, if it gets you through a year, won't owe you anything. Worst case scenario as long as it's safe (which the 12 month MOT says it should be to start off with at least) is that if it fails next year's MOT on a long list of stuff, you just scrap it.

    Go down the cheapy route, and get a plan in place (SOA etc) to clear the CC debt before you start thinking about taking anything more on in finance. I have to be blunt and say that you should also get the debt gone before thinking about starting a family. They're expensive little things, babies. It's like any other lifestyle choice I'm afraid - you need to evaluate whether you can actually afford it!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£373.02
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