do i get a newer cheaper car

lazza1978

hello all i would really appreciate some objective advice. i am taking a hard look at my finances. i have realised i am paying a lot of money out for a 4 year old car.

last march i traded in an 07 petrol car and bought an 08 plate diesel car, at the time i was driving 50miles a day to work and i needed to cut my fuel costs from £70 per week.

since then i have had my hours cut and have bought a rail pass through work and catch the train to work, i have also started to use the work pool car for my work related journeys. my own car is sat at home and just used at weekends or short trips in the evening.

it is a top spec car and i love it its great to drive etc etc but it recently had to have £750 worth of work which i luckily got in the manufacturers warranty. i don't have spare cash for repairs.

it is financed with a work car loan with a very small interest rate, i owe about £7800 and the car is worth about a minimum of £6000 trade in they are selling for around £8900 at dealers.

i am paying 270 a month which comes straight from my wage making me not really notice it! until jan 2015 the car will be 7 years old by then.

shall i sell it for around 6k and buy something else like a small hatchback for about 6k that is about a year old with a warranty. and carry on paying the same amount per month till jan 2015 i know i won't like the car as much but should i put emotions aside. or am i better keeping the current one paying it off and keeping it till it dies. i don't know what is the best thing to do financially.

thanks for any advice.

jumperjohn

Sell it bank the cash and look at lease deals, not pcp, just google for a price. New cars can be had for £100 a month, obviously small cars, with a small deposit. After 3 years start again. Advantage is that no big loan needed but you don't own the car.