Car options after a write off

Doshwaster

Last week I was unfortunate enough to be rear-ended at some traffic lights by a twerp how "didn't see me". The physical damage wasn't that bad - the car was still drivable - but because it was an 8 year old Megane, it is almost certain to be an economic write off - though I'm still waiting to hear back from the insurance company

I was probably planning on replacing it in the next 6-12 months anyway so I'm mostly annoyed at the timing. I've had enough of unreliable Renault electrics and would like something more reliable, modern and not French.

However, I'm trying to decide what to do.

1) Take the insurance money, about £2000, and get a cheap runabout that I can get a couple of years out of.

2) £2000 insurance + take a bank loan for £7000 (just over £200 a month over 3 years) and get a decent £9000 2-3 year old car.

3) I've got a friend who is a Honda salesman and he was trying to convince me to go for a PCP plan - he'd "do me a deal" on a new Civic over 3 years for around £250 a month.

£200-250 a month is probably manageable but my savings are currently non-existent as I just bought a house 6 months ago.

Inactive

Doshwaster wrote: »

However, I'm trying to decide what to do.

1) Take the insurance money, about £2000, and get a cheap runabout that I can get a couple of years out of.

2) £2000 insurance + take a bank loan for £7000 (just over £200 a month over 3 years) and get a decent £9000 2-3 year old car.

3) I've got a friend who is a Honda salesman and he was trying to convince me to go for a PCP plan - he'd "do me a deal" on a new Civic over 3 years for around £250 a month.

£200-250 a month is probably manageable but my savings are currently non-existent as I just bought a house 6 months ago.

These are uncertain times, go for Option 1.

AlwaysPondering

If it is still safe and drivable, why not buy it back from the insurance company.. I know a few people that have had accidents and the cars written off due to the age and the cost of repairs, although the cars have been ok..

They have normally been offered X amount for the car to be written off, or Y amount and you keep the car.. If you were going to replace the car in a year or so, and it's still going and you are happy with in (although I detect that you not).. why not hang on to it for a while longer..

Me - I'd prob go for a couple of 3 grand car...

Lum

If it's just the rear bumper or something stupid then yes, take the money (minus buyback) and just keep driving the damn thing. Maybe bash the bumper roughly back into shape with a hammer or take it to a backstreet bodyshop for a cheap repair. (Repairs are a lot cheaper when the garage doesn't have an insurance company to deal with)

Use the insurance money to replenish your savings and then replace the car according to your original schedule. Be aware that the value of the car will diminish due to it being a Cat D, but it sounds like it's not worth much anyway so you should still profit.

Lastly, be aware that the first offer the insurance company makes will be laughably low. Always argue the toss.

atrixblue.-MFR-.

i would just wait till you insurance decide what to do. your "friend" is poaching you taking advantage of a situation. when your car is written off dont take first offer research the price of your megane as if it werent damaged was not your fault the car was rear ended, go on auto trader look at meganes of same age and around same mileage tax and tested with same cc engine. if they going for more than £2000 but say £3000 or even £3200 tell your insurers that im not accepting this offer i have seen similar vehicles going for way more it wasnt my fault my car was hit and i want going rate for the vehicle wich from my research is £xxxx.

if you really cant afford PCP or HP to get a new vehicle "deals" will look attractive but when you factor in that you have to insure the vehicle, may have to tax it too is a deal realy a deal? getting a substancial bank loan like £7000 over a short period is not clever in my opinion.

just wait untill the insurers give you an idea of how much they are giving you. haggle a bit with them. if your get £2800 or £3000 that will be a really good deposit fo a car or to buy one of similar age and no debtors to give money to.

Doshwaster

AlwaysPondering wrote: »

If it is still safe and drivable, why not buy it back from the insurance company.. I know a few people that have had accidents and the cars written off due to the age and the cost of repairs, although the cars have been ok..

That's what I don't know yet. On an external inspection it looks like just the bumper and boot/rear window assembly, the side panels and light clusters are fine - but only a closer inspection will tell if the boot floor panel has been significantly damaged.

I'm not to keen on doing a buy-back and repair. The car is probably only worth £2000 so I wouldn't want to spend a significant amount of money on repairs.

I know I should go for the sensible cheap option but I couldn't help dreaming about a new car. That's why I cam to some MoneySavingExperts to talk me out of it

atrixblue.-MFR-.

Doshwaster wrote: »

That's what I don't know yet. On an external inspection it looks like just the bumper and boot/rear window assembly, the side panels and light clusters are fine - but only a closer inspection will tell if the boot floor panel has been significantly damaged.

I'm not to keen on doing a buy-back and repair. The car is probably only worth £2000 so I wouldn't want to spend a significant amount of money on repairs.

I know I should go for the sensible cheap option but I couldn't help dreaming about a new car. That's why I cam to some MoneySavingExperts to talk me out of it

a new year is approaching fast so all i can say is think of christmas, and forget a new car till new year insurance sorted and youve got the money in hand.

McKneff

Just because you think its worth a couple o grand, doesnt mean the ins. company will offer you £2K, expect £1k then reject the offer.

and wait.

Strider590

Is it really worth throwing yourself into massive debt just to buy a "nice" car that'll just get dented and trashed the first time you park at the supermarket?

I say option 1

Doshwaster

Repair garage have just called with a repair estimate of £3000 and have passed it onto the insurance company for a decision, but it's sure to be an economic write-off.

I think I have managed to put myself off a shiny new car. I have been looking at insurance quotes and some are scary when you mention that you've just had a no fault claim. It hardly seems fair. The other party's insurance have admitted 100% liability but I'm being hit in the pocket with increased insurance premiums. Also, what with a new house, new mortgage and the current economy now is not the time to be committing myself to an extra £250 a month for a new set of wheels.

Radsteral

spend some time finding insurance-- there is a big pool to search , so be patient.
its important the car you pick aswell and try it with existing insurer first and see what they say
i had my van smashed while i was parked, but the premium only rose by 46 pounds which is, the going rate for evry body that takes new insurance novadays or even more