Downgrading Car?

sara86pink

After I filled the car up on Saturday and it costing me almost £80 plus the £60 a month insurance I'm starting to think about selling my car and getting something cheaper.

I currently drive a 53 plate Renault Laguna 1.9 diesel. My dad got it for me Nov 2008 for 3 grand and I will be paying him back once my main debts are clear.

So, he reckons I may get around £1,400 on part exchange for it now I just have to adjust to the fact I will have to get a smaller / older car instead of driving around in my beast.

I'm just after reassurance that this is a good idea as it is costing me a lot to run it a month.

Also, with car insurance, will I just have to call up my provider and give them the new car details and they will reduce my direct debit? (I pay monthly for car insurance) or do I cancel and go with the cheapest (if so, how much will I have to pay to cancel?

Thanks

Hintza

Your car is hardly a beast.

I think you need to sit down and work out exactly how much it costs you to run and then compare that with a few alternatives and see if you really are going to save money.

How long is left on insurance policy? Probably cheaper to just change it over to the other car and then look at it again when it expires (but again you need to do the sums).

hopefulfooluk

As Hintza says, your car is pretty sensible I would have said. I run a 1.9 Polo diesel, a year older than yours, and it's the most economical car I've ever owned - even with fuel prices as they are now it still doesn't cost me more than 10p a mile in fuel.

What is costing you a lot besides the insurance? Don't forget you'll lose money by trading it in for something different (the garage has got to make some money from the deal somehow so often it's cheaper to hold onto it for as long as possible).

If I am right in thinking from your username you are 24 years old, insurance does drop a bit when you're 25 too so hopefully the bill for that won't be too much from next year. Have you gone to any female-specific insurers too as they can sometimes save you a packet?

AdrianHi

How many miles do you do?
Once your into a car that is 7 years old depreciation is so little it is hardly a factor which leaves you with running costs per mile. If you don't do many miles there will not be much scope to save with a smaller car.
Each time you change car you take a hit on the difference between purchase and trade in price.
If yuor mileage is low, unless the Laguna is throwing repairs bills at you, you might be just as well off sticking with what you have.

sara86pink

I only call it a beast because compared to my friends I have the biggest car (they all run 1.0'sh to 1.2's) and my OH thought I was in my late 20's! lol

I'm 23, will be 24 end of december so I have a little while now until the insurance goes down. I used to pay less for insurance when I lived in the quieter part of town and had a drive so that did make quite a difference.

I dont really want to get rid of it as it is a nice car and I was hoping to run it to the ground rather than keep changing cars all the time.

In all honesty in a couple of months once initial monthly payments have been done I will be better off a month so wont really make too much difference.

And also, for that £80 of diesel I got about 600 miles (not sure if that is any good or not...)

AdrianHi

sara86pink wrote: »

And also, for that £80 of diesel I got about 600 miles (not sure if that is any good or not...)

Around about 45mpg, it will be tough to save much on fuel costs coming from that.

Hintza

45mpg I would be ecstatic......lol.

I'm crying a great deal just now at my paltry 23.3 mpg.

JQ.

The other thing to consider is that, the car you replace it with may not be so reliable. If you've got a good car, that you're happy with, that is returning 45mpg, I think it sounds like a keeper.

no_more_cards_for_me

Keep the current car

You own nothing on it (apart from what you owe your dad) and its economical.

I run a 2ltr turbo chipped S60 volvo. Around town I get 23mpg and on a run 30 ish if I don't go overboard with the right foot. It's not economical but it owes me nothing for finance and is comfortable (and quick). Insurance for me is £43 per month and fuel £140 ish (some reinbursed by work).

I could swap it to a smaller car but I know the history on mine, its been 100% reliable and I trust it to get me home. Swapping gives no guarantees and I could end up having to finance a car instead. So whilst I might be better off on fuel, I'd be paying finance.

I'd keep what you have for the time being.

catflea

Keep it! You are getting good MPG and a pretty good insurance price... To put it in perpesctive when I had a 1.3 fiesta at your age it was costing me £72 a month in insurance and doing 30ish MPG.

Keep what you have, it sounds like a goodun

liam8282

You might be able to get your insurance down a bit next time round by adding another driver to your insurance. (if you haven't already)

Add your partner, or one of your parents as a named driver and, in most cases, the insurance is usually lower. (also, it would only be beneficial if they had a decent driving record, good no claims etc.)