Negative Equity on a Car

harveybobbles

Naughty_Sausage wrote: »

Costs hubby quite a lot in petrol (32mpg if you are lucky).

Road tax going to be £500 a year if the new bandings come in!

32 is quite ok for a petrol car.

Road Tax will only be 500 for new stuff...

Naughty_Sausage

i thought the £500 tax thing had a retrospective element and when I checked I am sure that our car fell within the bracket (although only by a few weeks)?

plus, the very high repair bills mean that we spend hundreds and hundreds on this car every year. surely thats got to be a false economy when we can get a newer (better) car for the same per month, but by just paying the loan for 2 extra years?!? better economy, cheaper insurance?!?

gar123

Costs hubby quite a lot in petrol (32mpg if you are lucky).


i had the new mondeo 2 litre petrol and was lucky to get 32 mpg although i have a heavy foot, agree with earlier poster that 1700 gives you a lot of running, if it is running well i would stick with

good luck with your decision

CHR15

This site should help to find the Road Tax

http://www.parkers.co.uk/cars/road-tax/#

Your Results

Ford Galaxy (00-06)
2.3 Ghia 5d

Rates effective from 1 May 2009
Date of Registration 6 Months 12 Months Band CO2 (g/km) 1 Aug 2000 – 1 Mar 2001
£104.50 £190.00
- 1 Mar 2001 – 28 Feb 2006
£118.25 £215.00 K 242

Rates effective from April 2010
Date of Registration 6 Months 12 Months Band CO2 (g/km) 1 Aug 2000 – 1 Mar 2001
£112.75 £205.00
- 1 Mar 2001 – 28 Feb 2006
£134.75 £245.00 K 242

sorry about formatting

Naughty_Sausage

thanks so much for all of the replies guys, especially the help with the tax query.

I read the posts to Mr Naughty Sausage (Sounds a bit rude that) but I think he has made his mind up. He just sees that he can get rid of old crappy car and replace it with a newer more suitable car which is cheaper to run and won't cost so much in petrol, insurance and garage bills.

I suppose he sees it that if he gets a personal loan to cover the negative equity and new car we will pay the same amount per month as we do now but for an extra 2 years.

Feel like he has railroaded me a bit but I guess I should be used to that. :rolleyes:

thanks again - you have all been great. :T:beer:

tomstickland

32mpg isn't too bad.
Do your maths carefully. It might be cheaper to keep it.

jeannieblue

Not wishing to burst any bubbles - but Mits Lancers are not particularly cheap to maintain - parts can be horrendously dear...

If your Galaxy is an auto - I would say get rid of it, but if its not, can't see that the Lancer is a better option to be honest.

My opinion.

Inactive

Naughty_Sausage wrote: »

I suppose he sees it that if he gets a personal loan to cover the negative equity and new car we will pay the same amount per month as we do now but for an extra 2 years.

Feel like he has railroaded me a bit but I guess I should be used to that. :rolleyes:

thanks again - you have all been great. :T:beer:

Which is fine if your income is 100% secure, unfortunately many incomes have been seriously eroded in this difficult period.

Reading between the lines, it looks like your OH just fancies a change of car and is trying to justify it to you.

Good luck.

AdrianHi

OK so your in negative equity. Whats done is done and your looking for a way to turn it around.
An excercise I do with cars is work out the real cost of a car over the long term and then divide it by the number of months I have owned / plan to own the car. Gives me a long term monthly average expense for the use of the car which I can compare with my monthly income and other expenses to show me if the car is actually affordable, not bleeding me dry and that I could afford replace it with something similar in future.
Having done this excecise many times for a number of cars (different family memembers) and having owned a Mitsubishi Galant (loved it) there are some things I am fairly sure of.
1. A Mitsubishi Lancer isn't that competative in the market as a car and parts on Mitsubishi's have become very expensive compared to competors since around 2002.
2. You can save money in the medium to long term by getting rid of the old 32mpg Galaxy and down sizing to a younger smaller car that will be cheaper to run. This holds true even if you have to put a few 1000 into purchasing it somehow (loan/cash/whatever).

I could work through this with you to prove it over the next couple of days but I need some information.

Current car residual value £2000
Exaclty (or to the nearest £10) how much have you spent on repairs on this car while you have had it?
How long, in months, have you had it?
It's 32mpg, but how many miles a year or month do you expect to do in future?
How much has the routine servicing (excluding repairs costs above) cost you?
How much can you spend on the next car, £2000 trade in + how much more? Perhaps we take £1000 of the savings and leave £1200 emergency funds??
How much is the tax disk?
How much is insurance / what insurance group?
How much are the tyres, how long do they last?

How big a car do you need?
There are plenty Lancer estate cars around that will be cheaper in the long run and better cars, is this the size and type of car you need?

At the end of this we can have a monthly figure for the current car and potential replacements which willnot be 100% accurate but close enought to make a buying or keeping current car decision.
Annual mileage is key, if miles are low there is less scope for saving moving to a younger cheaper to run car.

Naughty_Sausage

Thanks for your help with all of this

Current car residual value £2000 YES
Exaclty (or to the nearest £10) how much have you spent on repairs on this car while you have had it? £1500:eek:
How long, in months, have you had it? 29 MONTHS
It's 32mpg, but how many miles a year or month do you expect to do in future? 12000
How much has the routine servicing (excluding repairs costs above) cost you? £300 A TIME, EVERY YEAR
How much can you spend on the next car, £2000 trade in + how much more? Perhaps we take £1000 of the savings and leave £1200 emergency funds?? £5-6000 ON THE CAR, LOOKING AT ONE WHICH IS £5000
How much is the tax disk? £245 ON GALAXY
How much is insurance / what insurance group? £300 ODD FOR GALAXY £200 FOR LANCER
How much are the tyres, how long do they last? £100 EACH LASTING 15000

How big a car do you need? GOT 2 LITTLE KIDS (2 AND 4) PLUS OUR OTHER CAR IS A COLT SO ITS ONLY LITTLE - MORE LIKE A TOWN CAR REALLY. TOO SMALL FOR HOLIDAYS / LONG DISTANCES. ONLY 1.1. 3 CYLINDER
There are plenty Lancer estate cars around that will be cheaper in the long run and better cars, is this the size and type of car you need?