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Should I keep my car?

Muhren
Muhren Posts: 1,705 Forumite
Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
edited 4 July 2013 at 11:44AM in Motoring
Following on from my last post I have decided against signing up to the salary sacrifice scheme at work.

My next question is should I keep my current car or look at getting something that is cheap to run and maintain.

I currently have a 54 plate Mercedes C180 petrol which had around 69,000 on the clock. My annual mileage has gone up rather significantly in the last year and I am now doing around 24,000 per year.

It has needed working doing on the suspension for the last 3 years in order to pass the MOT. Tyres are expensive (£480 for four last month) and the tax is £260 for the year.
What do people think should I keep hold of it or get rid and get something that is more economical to run.The majority of my driving is on the motorway and if I sit at 65 mph I can get around 45-47mph. What would people recommend, if I was to sell it and get something around the same price as I sold it for?
LBM: Dec 2012 - Debt £38,180/ Now £0.
DFD - 17/04/2016
Gambling: The sure way of getting nothing from something.

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Comments

  • BlueC
    BlueC Posts: 734 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    I'm surprised you get 45mpg as that isn't bad at all for a petrol engine, but it can't be much fun driving 24k miles at 65mph!

    What is your real world mpg? (assuming you don't drive everywhere at 65mph)

    And are you going off the trip computer or have you calculated it manually to confirm it is correct?
  • Muhren
    Muhren Posts: 1,705 Forumite
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    The 45 mpg is from the trip computer and I haven't calculated it manually as yet.

    Yesterday I filled up with the light having been on for around 30 miles and I got just over 56 Litres. I had reset the mileage back to zero so I will see how far I can get on that. It's usually around 500 miles, so that would suggest 40 mpg.
    LBM: Dec 2012 - Debt £38,180/ Now £0.
    DFD - 17/04/2016
    Gambling: The sure way of getting nothing from something.

  • BlueC
    BlueC Posts: 734 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    40mpg is decent enough for a petrol car. An economical diesel would get you above 50mpg and maybe up to 60mpg so there is some significant fuel saving to be made if you do decide to change. But offset that against the cost of changing cars and it is not a clear decision... it always costs money to change cars unless you're prepared to go for something cheaper.

    If you do want to change, since you're used to driving a Merc I guess you're not going to want a Skoda Octavia or Ford Mondeo or similar? I'd be tempted by a BMW diesel - probably an E46 320D with a good spec (SE or Sport) and there is plenty of them around so you can be sure to find a good one. Excellent efficient engine and well refined interior like a Merc, but normally a bit cheaper to buy and maintain than a Merc.
  • BlueC
    BlueC Posts: 734 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Since I'm bored... here's some figures:

    Assuming 24,000 miles per year.

    Petrol £1.34 per litre. 40mpg would be £3655.06 per year.

    Diesel £1.38 per litre. 50mpg would be £3011.33 per year so saving £644 per year. 60mpg would be £2509.44 per year so saving £1146 per year.

    At 60mpg the savings per year are decent. Throw in a bit of car tax saving too and you're looking at saving £1250 per year.

    The only problem is, when you buy a second hand motor you can expect it to need a bit of work to get it in tip-top shape and that could quickly eat into your £1250. Servicing may be more expensive on a diesel too, and there is more to go wrong with them. Also, there is always the temptation to spend a bit more than what you sell your current car for!
  • Muhren
    Muhren Posts: 1,705 Forumite
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    I am not ruling any car out to be honest. I know that small doesn't always mean more economical but was thinking along the lines of an Audi A3 54/55 plate but then how much am I reallly going to save on fuel by time I have sold and bought the cars.
    LBM: Dec 2012 - Debt £38,180/ Now £0.
    DFD - 17/04/2016
    Gambling: The sure way of getting nothing from something.

  • FreddieFrugal
    FreddieFrugal Posts: 1,752 Forumite
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    edited 4 July 2013 at 3:17PM
    It's probably between £2500 - £3000 that you'd get for the Merc p/x depending on spec. so given the fuel saving estimate given above you'd be looking at something around £4,000 - if you were just looking at getting the most out of the fuel and tax savings.

    Obviously if you're spending a huge amount of time in the car it wants to be a nice place to be and you have to actually enjoy driving the car which is worth paying a bit extra for if need be, at least in my opinion.

    You could get a Diesel Audi A3 for that price. One on autotrader that's 05 reg for £3,990. If you want the most of fuel/tax savings you need a car that's not too much older than that - broad generalisation - but most of the diesel engines around that time are relatively high CO2 emitting.
    Mortgage remaining: £42,260 of £77,000 (2.59% til 03/18 - 2.09% til 03/23)

    Savings target June 18 - £22,281.99 / £25,000
  • BlueC
    BlueC Posts: 734 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Muhren wrote: »
    I am not ruling any car out to be honest. I know that small doesn't always mean more economical but was thinking along the lines of an Audi A3 54/55 plate but then how much am I reallly going to save on fuel by time I have sold and bought the cars.

    See above. Even if you only broke even in the first year after changing, if you continue to do the miles and keep the new car then you'll be saving a fair bit in subsequent years.

    The A3 is a nice car but they can be pricey for what they are. I personally wouldn't go any smaller than an A3 for the miles you're doing.

    Edit: A Saab 93 may be a good choice - they are cheap as chips and the 1.9TTID is a great engine. Nice interior but they do rattle a bit... not quite as refined as an Audi/Merc/BMW but good value for money.
  • Muhren
    Muhren Posts: 1,705 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Basically the reasoning behind changing cars is financial, I don't really want to get rid of mine but if it worked out that I could save a far bit by doing so then I would go for it.

    Thanks for your help and suggestions so far.
    LBM: Dec 2012 - Debt £38,180/ Now £0.
    DFD - 17/04/2016
    Gambling: The sure way of getting nothing from something.

  • OddballJamie
    OddballJamie Posts: 2,660 Forumite
    1,000 Posts Combo Breaker
    Is LPG still worth doing?
  • Muhren
    Muhren Posts: 1,705 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 5 July 2013 at 9:08AM
    That is something I have been looking at but I haven't found anything that seems suitable as yet.

    Edit: I forgot to add Jamie, the A4 LPG conversion looks like it has been sold.
    LBM: Dec 2012 - Debt £38,180/ Now £0.
    DFD - 17/04/2016
    Gambling: The sure way of getting nothing from something.

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