We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
To sell the car or not
debtaghh
Posts: 1,798 Forumite
Hi,
I've just started a diary but wanted people's opinions. We have a lot of debt and could potentially sell our car for approx 9k but we would need a car as the car we would be selling is the only one we have. We have had this car since new therefore know the history etc. Do you think we should sell it and clear circa £5k of debt and buy a second hand car which could potentially have issues?
I've just started a diary but wanted people's opinions. We have a lot of debt and could potentially sell our car for approx 9k but we would need a car as the car we would be selling is the only one we have. We have had this car since new therefore know the history etc. Do you think we should sell it and clear circa £5k of debt and buy a second hand car which could potentially have issues?
0
Comments
-
Ok, firstly why do you need a car? Is there no public transport? (obviously I know buses take longer to get places than cars and you have to go by their timetable) Have you researched season tickets for example? Not saying you don't need one, but it is surprising how far you can travel without one.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
-
Ok, firstly why do you need a car? Is there no public transport? (obviously I know buses take longer to get places than cars and you have to go by their timetable) Have you researched season tickets for example? Not saying you don't need one, but it is surprising how far you can travel without one.
Thanks for your reply.
I have three children and where I live the transport is not frequent and extremly expensive and due to my husband's shifts he needs it at times as public transport do not run at certain times.0 -
Ok so next thing to ask is what research have you done into cars you can get for £4K? Would £5K clear off the debt?Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
-
It will be about 8 years old with 70000+ miles. We need it to be a five door and big enough for the car seats. 5k would clear one credit card, we have several .0
-
Ok, but where did you get the valuation? Also have you actually researched where you can get a car for 4K that meets your requirements. It would be good if you were able to clear one of your cards. Are there other savings you could make in relation to the car? Save on insurance for example, servicing etc? Clearing off the 5K is admirable but I would hate for you to be left with a cash cow in terms of repairs etc.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
-
Hi,
Thanks for replying. We have been looking on auto trader, Parker and what car. No other saving would be made as it's a new car with an alarm etc and we get break down included. We already have a really good deal on insurance and infact have just had it serviced and changed a tyre. That is my worry that we will end up having loads of problems with another car.0 -
Heres my take.....if you are in a one car household and you do actually need a car then it makes sense to keep the one you have. You know it's history, you know it's reliable.
Yes there are some great little cars around for the £4K mark but you could be very unlucky and end up with a dog.
It's up to you but I would take the view "better the devil you know". With a bit of luck your car has the potential to give you at least another 5 years of hassle free motoring, a cheaper one could cost you a fortune in repairs. You just don't know.
Before you make a final decision have you looked at where else you can cut costs and/or earn a bit more to tackle your debts.0 -
Might be worth posting an SOA with a note on when you are in contract to on things like mobile/ TV and see if folk can identify other savings for you. Also might be worth being a tad cheeky with your card providers and asking them to reduce interest rates for you.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
-
You say you have other debts, so repaying just one of them, and losing a reliable car, is not really the sensible thing to do, you will never get what the car is worth.
Best to do an SOA, and list all your debts, there may be a debt solution which is more suitable to your needs and situation.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Might be worth posting an SOA with a note on when you are in contract to on things like mobile/ TV and see if folk can identify other savings for you.sourcrates wrote: »Best to do an SOA, and list all your debts
I agree.
Selling the car may clear one debt, but there's still the other debts and, potentially, additional costs with an older/unreliable car.
An SOA would let other FMs see where you stand, and suggest ways to cut spending, freeing up more cash to pay down your debts.
Also, are you currently meeting you bills and debts liabilities, or are you overspending, taking you further into debt?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards