Should I take the plunge?

RachelBP

Just wanted some opinions on a car finance deal I'm looking at taking on.... I don't have any other credit other than my student loan, earn £1500 take home in a 'secure' job and my current outgoings are basically £500 rent, £60 storage, £30 phone and I try to save £300 a month.

I have a 2006 Aygo, 45k miles, no warranty, bought it outright a couple months ago because I needed a new car quick after coming off Motability. I have been a little concerned about the longevity of the car and my ability to pay for repairs and a new car in the future as I have very limited savings (I just started saving that 300 every month).

Toyota have offered me to part ex. my car against a 2010 Aygo, similar spec just 4 years newer, with 20k on the clock, monthly payments of £130 for 3 years and then I'll own it outright. It will be under warranty until June 2015.

Insurance is actually a touch cheaper.

I am usually totally against buying on credit and had promised myself I'd steer clear of using finance or credit aside from my student loan and a mortgage one day.

My reasoning here is that even in 3 years, the new car will still be newer and have less miles than what I own now. Whereas in 3 years, my current car will likely be on its last leg with no guarente I'll have much £ to buy a new one.

(Yes I could but the £130 away each month that I would have spent on a new car but I think we all know other things can, do and will crop up to eat into it).

Any ideas appreciated. Just sounding out, seeing what other MSE-ers think.

balletshoes

so your new car will cost £4680 plus whatever the garage is giving you for your car.
Just had a look on autotrader, that age/mileage of that model is for sale for around £6700, so unless the garage is only offering around £2000 for yours (and again, your car is going for around £4000 on autotrader) then you are in effect paying £2000 more over the 3 years, compared with just buying a newer car when yours finally lets you down.

Either way, to me, it looks like you are £2000 down on the deal.

daveyjp

Far better to keep what you have and save your money for any repairs. The Aygo engine has been around in various forms for decades, regular servicing will see it do well over 100,000 miles.

The other major expense is the clutch, but this can go on any car. Other running repairs are cheap enough and will be required on either old or new Aygos.

Its the sort of car that will hold value.

worried_jim

Keep the car you have all the way......

gilbert_and_sullivan

Keep what you have and find a decent mechanic to look after it for you, if you don't neglect the car it will likely last many years trouble free.

Good maintenance saves money every time.

Barneysmom

I'd keep the one you've got at least for another couple of years. At 45k your car is still a babby, and has a lot of miles left in it. It doesn't even need a belt change, hold on to your money.

scotsbob

As above. A 6 year old car with only 46,000 on the clock should last you at least another 5 years.

Put the extra cash into a savings account each month and use it for any repairs.

wba31

scotsbob wrote: »

As above. A 6 year old car with only 46,000 on the clock should last you at least another 5 years.

Put the extra cash into a savings account each month and use it for any repairs.

I would say you missed some digits. 6 year old cars are YOUNG! Cars these days are built to last for 15 years or more, and engines, if serviced regularly and looked after are designed to do 300k miles, baring the odd wear and tear replacements.

As people a have highlighted, changing your car now will cost you £2000 than buying outright. I think the MSE thing to do is keep saving, you're putting away £3600 a year! by the end of 2014 your current car will only be 8 years old (my current car is 8 years old, 135k miles on clock and still doing 500 miles a week quite happily) and you should have enough saved to buy a 6 month old Aygo.
But if your current car is then 8 years old, maybe 70k miles and running fine, why change it unless you need to? it's cheaper to stick with what you got and keep saving until something big goes wrong, and then you can sack it off and buy something outright...

RachelBP

Thank you for all opinions guys. Toyota just called me to offer a different car (59) - with better spec, AC, Bluetooth etc - for 100 a month plus my current car.

Although everyone tells me not to, I just don't know! Argh!!!

scotsbob

wba31 wrote: »

I would say you missed some digits.

Why would you say that??

I said "A 6 year old car with only 46,000 on the clock should last you at least another 5 years."

You should take "least" to be, not less than/a minimum of/the smallest number of.

mattyprice4004

45k and you're worrying? My Midlands-built shed has nearly 170k and is 4 years older than yours, and I'm not panicking.

Keep it