Replace car with newer one on finance?

edde

If your getting 6k for it it's a very good offer.

Option a is is the cheapest highest risk option not what I'd do.

Option b asuming you buy a 6 Yr newer same spec car and they give you 6k to trade in yours and 6k for the newer car in another 6 yrs and you'll end up paying approx 1.5k in interest 9k in depreciation and 1k in repairs (hopefully new one would be more reliable) over 6 yrs. That's 160 a month to run it vs your car which has cost you maybe 1k in depreciation and 2k in repairs in the last Yr (ie 250 a month).

Option c is a car going from 21k to 4k over 10 yrs so with a few repairs ~160 a month.

All three are options with the new car and the used one it's going to costs you a lot.

If you really want a top spec golf I'd go for option b but personally that's only because you want a new golf. You could (and this is what I'd do) get a nice focus or Astra etc for the same 6k yours is apparently worth and it would be 4 yrs newer and half the milage. And that's for a 2.0 diesel (Astra) . A 4 Yr old model with 40k is 7.5k that's a lot less than any equivalent golf. Cost to run one to 10 yrs 80 a month for a 6k one to 85 for a 7.5 k one. That's a lot of money both a month and total to own a car. Sure people say they are unreliable but look at your golf reliability. Option b vs the 7.5k astra (or similar) saves you a total of 5.5k over 6 yrs that's a lot is a golf or other badged cars worth that. I'd say no as you could buy another car for the difference.

[Deleted User]

As yours is a high spec Golf and youve already spent money on repairs I would run it into the ground. You are debt free, that is a wonderful thing.
As previous poster has said put money away for repairs. I would perhaps put as much away each month as you were prepered to pay each month on finance.
Then in a few years you may have enough cash to buy a newer car for cash..
If could go back in time I would have done this myself and not wasted thousands on cars over the years.

agrinnall

Presumably WBAC haven't actually seen the car yet? When they do I'd be surprised if they actually offer much more than £4K.

startingout2016

Deleted_User wrote: »

As yours is a high spec Golf and youve already spent money on repairs I would run it into the ground. You are debt free, that is a wonderful thing.
As previous poster has said put money away for repairs. I would perhaps put as much away each month as you were prepered to pay each month on finance.
Then in a few years you may have enough cash to buy a newer car for cash..
If could go back in time I would have done this myself and not wasted thousands on cars over the years.

This is so true, and I do feel nervous about getting back to a finance situation.
The car is well looked after, so really the only benefit is potentially a slightly higher ncap rating? Since becoming a parent I worry more about safety compared to pre child days when I would drive around in old £500 rust buckets.

startingout2016

agrinnall wrote: »

Presumably WBAC haven't actually seen the car yet? When they do I'd be surprised if they actually offer much more than £4K.

I've used them before and never had any problems. If you describe the car accurately then they honour the price.
Ive found them far easier to deal with than selling privately.
For them to knock £2k off their valuation would need some major damage.
The cheapest I have found my car for on autotrader is £7.5k, and most from dealers are around £8.5 - £9k, so £6k is still considerably lower

GunJack

startingout2016 wrote: »

This is so true, and I do feel nervous about getting back to a finance situation.
The car is well looked after, so really the only benefit is potentially a slightly higher ncap rating? Since becoming a parent I worry more about safety compared to pre child days when I would drive around in old £500 rust buckets.

Except a £500 motor these days isn't going to be a rustbucket any more, unless it's had a stupidly hard life.

If I were you I'd either keep the current (with repair fund building) and run it forever, or sell for £6k and buy another for £500, bank the rest, and go back to bangernomics - it works