Should I keep my current car or should I get a new one?

safp888

Hi all,

I'm contemplating on whether or not to sell my car and I would appreciate some advice

I have a 09 reg Ford Fiesta Studio (base model) with 60,000 miles on board. It's in very good condition, never had to do any major investments other than regular services, tires and break pads. The interior is immaculate, the back bench looks virtually new. The exterior looks great too.

Anyway, I was thinking to trade it and get a lease for a new car - its trade in value is about £2,300. So I was thinking to use some of that money as a deposit and the rest I could put it in my savings account.

As I've hit 60k miles, the major service is due for September and I don't want to invest in an old car. Also, the car is still worth a decent amount and I'm worried that if I wait too long, I would end up selling it for scrap.

A part of me wants a new car as I'm a bit bored of driving this Fiesta. But at the same time, I want to make the best decision from a financial point of view. I drive every day to work, about 10 miles each way (in the city). I also do occasional long trips. I would say that overall, I do about 8k to 10k miles each year.

If I was to get a new car, my budget would be £160 per month, with a maximum deposit of £1k.

1. Should I go for it or should I keep my current car?

2. If the answer is yes, what cars would you recommend for that budget?

Thanks!

foxy-stoat

If you own the current car outright, then keeping it is better for your finances.

safp888

Thanks for your reply Foxy! Yes, I do own the car.

jackr5

Difficult for people to tell you whether you should get a new car or not - it depends if you want one? Only you can ultimately make that decision.

Do you have any cars in mind that you would like? For a financial commitment like a new car, it's maybe not the best idea to get one just for the sake of getting one.

safp888 wrote: »

I'm worried that if I wait too long, I would end up selling it for scrap.

On an 09 plate? People still drive/sell/buy cars at T reg, so I wouldn't worry about having to sell it for scrap, especially as you say it's in great condition.

agrinnall

Financially keeping the old car is something of a no-brainer, there's no real reason to think it will incur any major expense other than routine servicing in the next few years, and at your annual mileage it should easily last another 4 or 5 years, and quite probably a lot more.

So it really comes down to how much you want a new car. I replaced my 3 year old 60K miles Fiesta last year with a new one primarily because I wanted it and could afford it. I don't know about leasing costs but if it's within budget and you like the size and feel then an Ecoboost Fiesta, especially if you can get the more powerful engine, will probably suit you.

Nebulous2

Hello and welcome to MSE.

Lots of people, including me, have spent far too much money on cars.

It rarely is a financial decision though, its an emotional one, a want, want, want decision!

If your car has given you no trouble then the financial thing to do would be to keep it. Your major service will cost you what £300? You'll lose maybe £300 in the next year. So assuming no major repairs it will cost you £600 excluding VED and insurance.

Your lease will cost you £1920 plus a portion of your deposit. You'll still be committed to a further year or two of the same.

If you really want it and can afford it go for it - but don't pretend its a financial decision!

Nobbie1967

Financially, keep the current car. I bought a new 107 in 2005 and it's still going strong with no major bills aside from routine maintenance. You'll still get at least £500 for a one owner car in good condition at 10 years old and of course you will be able to buy a new car then with all the money you've saved on leasing costs:)

safp888

Thanks everyone! I appreciate your help. I think I will keep it

AdrianC

2009 car. So old, run it into the ground.

Blimey.

I've just changed our main, sensible, NEWEST car... 1990/G out, 1997/R in...

bigjl

If your monthly budget for a new car is £160pcm then I don't think you can afford a new car as it will put extra stress on your finances.

Best to put £160 in a savings account for the next four years as you will then have almost enough to buy a brand new car for cash, your Fiesta will still probably have a value of £5/600 minimum. Small affordable cars hold their value very well.

loskie

if you run it for another year and throw it away financially you will be in a better position than leasing.
But is it a case of you want a new car and a bit bored of the one you have?
I must admit to being in a similar situation with my 127000m 6 n half year old V50 owned by me from new but different from yours in that it needs money spent on new bushes.