Newbie, in need of advice

Lum

I've finally come here after a couple of very bad months have basically crippled me, and also made me realise that I was losing money every month anyway.

First, my tale of woe.

Because of the nature of my job (field engineer) I have to provide my own car, and since my boss comes from a sales background, it has to "look the part", so I can't just toddle around in a 20 yr old Ford Escort. Back in 2004 I bought a 1999 Subaru Legacy for £12000, figuring the £500/month car allowance would pay for the insurance and the loan repayments and if I found I couldn't handle it I could always sell the car.

Well a month later, someone rear ended the car, almost but not quite writing it off, destroying any resale value. I am still awaiting a payout for permanant back injuries, whiplash, loss of earnings, etc.

A year after that, someone rear ended it again, the day after I spent £3000 on a new engine for it, no-where near as bad and no injuries, but still another crash on it's record.

Then in august 2006 it was stolen and recovered, I was withoutit for 3 months and hit for a £400 excess, fortunately I owned a spare car which was a £700 shed, when I got it back, I lent the spare car to my GF

3 days after I got my car back (November 2006), my GF arrives home in my car in the early hours of the morning and interrupts a gang of men in balaclavas who have stripped out most of my ignition system and are well on their way to getting it running. I wish she had just ignored them and left them to it, but she interrupted them, was attacked for her troubles and my spare car was written off in the attack. Also another £400 excess and my protected no-claims bonus was reduced to 2 years.

I bought a new spare car for £250, which was stolen on xmas day 2006 with no insurance claim made (car worth less than excess) and the replacement car for that was scrapped in Februrary due to a major MOT failure, though it did serve nicely to guilt trip my boss into giving me a payrise.

And then it gets worse, in January my GF got the sack, and we spent two months living off my salary and her credit until she got another job with a substantial payrise, but the downside is we had to move to Wales, completing this move has stretched both our finances to breaking point... well beyond breaking point in my case.

So, the SOA:

Annual income: £21000 + £500/month car allowance
Monthly takehome: £1560
Other income: My boss keeps promising comission for stuff but rarely delivers

Outgoings:
Rent: £400/month (paid to my GF who then deals with the bills)
Car Insurance: £200/month
Mobile phone: £60/month
Cahoot Loan: £170/month (cannot remember when this loan runs out, probably 2010)
Halifax loan: £261/month (runs out in Jan 2009)
Road Tax: £15/month
Breakdown: £12/month
Food/household: £170/month

Then there are things like car repairs which can crop up randomly, I probably have a nasty one coming up as I recently hit a rock on the M40 at 70mph and tore out the wheelarch liner and damaged the bumper support.

Debts:

Egg Card: £2157 % 5.9% APR, minimum payment: £45
GM Card: £6630, not sure of the APR but I think it/s 18.9%, MP: £170
Halifax Card: £3938, again not sure of APR but I think it's 15.9% APR, MP: not sure
Inland Revenue: £834, APR not stated, no minimum payment.
Overdraft: £1597

Additionally I owe my mum £2000 to be paid back whenever, but preferably when the car crash pays out, and I owe my dad £700 which he wants back before November else it will screw up his plans.

I've looked at a debt management plan, but this would require me to change jobs. The problem is I have to pay for my own fuel and hotels, then claim it back, that has resulted with me getting hammered for many bank charges as my expenses can easilly reach £1000/month. If I go on debt management, I can't get any more credit, even though it's for an expense account.

The logical choie would be to sell the car and get a cheap econobox, but because of it's history no-one will go near it, the B4 is a rare beast with a small potential market of enthusiasts who know their stuff.

As of January 2006, I have just over £600 worth of bank charges I can claim back, I'm waiting for some funds to clear before I can send off a DPA request for the rest, but the fact still remains that servicing these debts means that my monthly outgoings are at least £300 more than my income.

Help!

southernscouser

Ever thought about buying a bicycle?


Crikey man, you have had some rotten luck!

Do you really have to have a Scooby as your car? Whats wrong with something like a new shape Mondeo or similar? Something cheaper on the insurance and cheaper on parts?

Does you honestly think your car, regardless of what your boss says/wants, makes you more money?

If no, then f*** what the boss says and downgrade! You can't afford not to!

Lum

The problem is, I live in a rural area that snows sometimes, I have a back injury, I have to haul large kit from time to time... oh and I can't sell the damn thing due to it's terrible insurance history.
In many ways the car is perfect for my requirements. Work pay for all my fuel, including private mileage, which is the main argument against the Legacy, it is capable enough on snowy hills (hell part of the reason my GF got this job is because I took her on a potentially lethal 4 hour drive through the snow and got her to the interview on time on a day when half their staff hadn't turned up... dedication!), comfortable enough on long motorway trips (Think: Cardiff to Dundee, overnight stay, half a days work, then Dundee to Cardiff), big enough to haul kit and since it's a Legacy, respectable enough to keep my boss happy.

It's also very good at overtaking tractors on single carriageways, drastically shortning my working day, which is important since even with this I'm pretty sleep deprived (and possibly unfit to be on the road) by the end of the week.

If I sold it and bought a shed, my boss would respond by withdrawing my £500/month car allowance. Bearing in mind I'll be lucky to get £3000 for the car, which means I'd have to replace it with a 5 year old Kia Rio or something. (Personally I'd choose a £500 Mk4 Ford Escort as I know them inside out, but they have probably all rotted away since I last worked on one)

Mozette

No advice, sorry, but I just wanted to say what absolutely !!!!!! luck, buy a lotto ticket, cos you are overdue some good luck. I hope it all improves for you. All the best.

Conor_3

I live in a rural area that has a lot of snow. In the last ten years, I've had a total of 3 days where I've not been able to get by with a 2WD car and a 4WD wouldn't have helped either because the snow was 3ft deep.

If you must have a 4WD that looks the part, a P reg Subaru Legacy looks the same as a T/V reg one and works just the same but costs around 1/10th the price. THe newer Legacy and Imprezzas do seem to blow bottom ends of engines quite regularly. Mates son has had a couple and they've both had to have new motors in.

Personally I'd get a MK3 Mondeo and be done with it. Honestly, we just don't get weather bad enough to need 4WD in this country. Hell, if it gets that bad, just hire a 4x4 for a couple of weeks.

If your boss wants to dictate what kind of car you have, get him to buy it.

I'm self employed. I visit my customers in a MK3 Capri I've recently finished restoring. I get enough complimentary comments about that car, even though it's essentially a 22 year old manky Ford, that I don't worry about it. Whilst it wouldn't be practical for you, it goes to illustrate that you don't need a £20k exec barge.

CHR15

Lum wrote: »

but the downside is we had to move to Wales,

At that point, you should have known you have hit rock bottom!!!:eek:

Your story reminds me of Fun with !!!!!! and Jane!! time to get a balaclava on yourself and get some payback!

Good Luck (about time you had some!):cool:

Lum

Actually, I'm glad we moved, things should be much cheaper here as we used to live in Aylesbury and thus had London prices, also the new place has gas central heating as opposed to no gas supply, no insulation and non-functioning storage heaters. Not to mention it's a much nicer place.

I guess the optimal solution would be to get a desk job, sell the car then go on a DMP, only problem is my GF is dead set against me going on a DMP as she wants to buy a house!

The problem with selling the car though is that if I replaced it with a P reg, I'd make no profit, because mine has lost so much value due to the 4 recorded incidents on it's record.

That said, the clasic car option, ie the 22 year old Capri, is one I have thought about, I'm just not sure a 22 yr old manky Ford could stand doing 40,000 miles a year. Maybe if I can find a Mk2 VW Golf diesel.

Conor_3

Place near me is selling an X reg Passat Estate for around £1500 that would be ideal for the mileage.

As for not making a profit on your Legacy, sometimes that's the way it is. Cars eh? Who'd have em?

LOL

Lum

Well, I've bought a J reg Volvo 460 to trundle around in for £180, and the Legacy is going up for sale as soon as my new wheelarch liner for it arrives and is fitted. Though I may put the Volvo through an early MOT first, just to ensure I get 12 hassle free months in the bank.

I'm going to need the money though, at the end of her 3 month probationary period, my GFs new employers have decided not to keep her on, we're stuck with another 4 1/2 months on the lease for this place (with no money to move anyway, the move here was done on credit) in an area where there is no work for her.

I can't win

GettingThingsDone

Hi Lum, you certainly are overdue some good luck. Things always have a way of working out though - never say never and all that

gtd