Loans versus car finance after bankruptcy

icklesarge

By in desperate need I mean my cars broken again, I work and have a child to get to school/holiday club also. Bus is not an option. I don't want to hurry into a decision, but I do need make an informed decision. Hence why I am here.

I have a vaukhaull astra, which I reckon would only get about £500 on part ex if that. I've saved £1500 and I'd be looking to pay 250 a month and maybe a 10k car, about 5 years old.

Thanks for all the help

madvicker

icklesarge wrote: »

By in desperate need I mean my cars broken again, I work and have a child to get to school/holiday club also. Bus is not an option. I don't want to hurry into a decision, but I do need make an informed decision. Hence why I am here.

I have a vaukhaull astra, which I reckon would only get about £500 on part ex if that. I've saved £1500 and I'd be looking to pay 250 a month and maybe a 10k car, about 5 years old.

Thanks for all the help

I would need more information to make an accurate assessment, but on the face of it my advice would be to stick with the old banger. Here's why:

AS your car is post bankruptcy, I'm assuming you own it outright. If you have saved £1500 in the last 2 years, that means your spare cash comes to about £70 a month. Yet you want to pay £250 a month just on the finance for the car? Which, I'm assuming would be on top of what you pay for car maintenance, fuel, insurance etc?

Your current maintenance costs are £600 (does this include fuel and insurance?), or £50 a month - your new car wouldn't be that much cheaper.

The figures don't really support it thus far. Of course I have had to make some assumptions, for more accurate advice you could complete an SOA but its up to you.

icklesarge

No I have other savings that are for a deposit on a house in the future, and I have surplus income. The £250 would be on finance repayments only, I can afford that and still save for my deposit. I don't spend money on anything else really, other than my child.

The £600 figure is only on car maintenance. (MOT/When it breaks down)