need new car, but still have almost £6k to pay off current loan, HELP!

claire8393

I really need a good reliable car for work, i have just under £6k to pay off my current loan. The car i have is ok, but i doubt it will see me through another winter. the loan term is 60 months it would be paid off by 2014! ill be lucky if the car lasts 2011, i have spent a fortune in maintenence.
I currently still live at home on a salary of £17333, and am paying £208 per month.
The car was a poor choice, and i may get about £1000 part ex if i am very lucky.
Any advice much appreciated, as at present i can see my only option being in about £11k debt by getting another loan or renewing this one.
I am only 24, and cannot afford to move out on my own at all.
the loan was the stupidest thing i have ever done, as the car is not worth any where near what i borrowed.

buglawton

Why won't your current car see you through another winter? My last car was 13 years old when I sent it to the scrappage scheme and would have taken me through several more years albeit with some repairs.

Find yourself a trustworthy mechanic and keep your car till it is at least 9 years old. Or are you worried what your workmates think of your image?

kev.s

any loan you borrow will still require the current 6k to be repaid, so borrowing more money for the worst depreciating asset in the world is pretty stupid. if you think you'll get 1k p/x then your still 5k neg equity, so you shiny new car will be 5k over budet too which i'm guessing is what you done with your previous one to be in such a fiinancial state

it's not a case of need, more a case of want.. i would have thought the math would have been enough to put you off. maybe a hefty deposit on some common sense would suit you better

Hax

Why is there such a huge difference in the amount you borrowed and the price you now consider the car to be worth? What car is it and what did you pay?

What are it's main faults? Even if you have to spend £400/year on maintaining this car, that will still work out a lot cheaper than trying to trade up.

blunther

Get an old Volvo for £500 and it'll run for years.

diable

blunther wrote: »

Get an old Volvo for £500 and it'll run for years.

Not necessarily my mates 05 Volvo failed with hydraulic clutch failure.

buglawton

Even a clutch failure may not signal the end of an old car - go to Mr. Clutch and get a standard tariff quote.

Chriswt

claire8393 wrote: »

I really need a good reliable car for work, i have just under £6k to pay off my current loan. The car i have is ok, but i doubt it will see me through another winter. the loan term is 60 months it would be paid off by 2014! ill be lucky if the car lasts 2011, i have spent a fortune in maintenence.
I currently still live at home on a salary of £17333, and am paying £208 per month.
The car was a poor choice, and i may get about £1000 part ex if i am very lucky.
Any advice much appreciated, as at present i can see my only option being in about £11k debt by getting another loan or renewing this one.
I am only 24, and cannot afford to move out on my own at all.
the loan was the stupidest thing i have ever done, as the car is not worth any where near what i borrowed.

is the car beyond economical repair? what car do you have and what are you looking to replace it with, if you don't mind me asking?

You can pick up a decent car for less than £2000 which would see you through until 2014.

Some people will tell you to fix your car or buy one for £500 but I've been there and done that in the past and it isn't always economical. I bought a great Audi A4 for £600 and then had to spend £600 on new pads, discs etc.

If you have a good credit rating could you by a cheap car (say £1500) using a credit card with 0% on purchases and then become a rates tart until its paid off?

Inactive

Nobody " needs " a car, they are a convenience, but not an essential.

Chriswt

Inactive wrote: »

Nobody " needs " a car, they are a convenience, but not an essential.

...apart from all the people that do 'need' a car like those who live in the back of beyond or for travelling to work where there is no public transport etc etc!!!!

whatyadoinsucka

why would anyone pay for something for longer than its econmical life..

If you can't afford it outright you don't need it..

reminds me off a couple i know who got married on credit, thank god they are still togeather. couldn't imagine getting a divorce and still having to pay of th debt of the big day