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Car finance, what to do
WeeThistle
Posts: 23 Forumite
in Motoring
Hi all,
I'd love some opinions or help with what I'm thinking. My husband has a work runabout (2004 VW Polo), I have a Ford Focus (2017) and have just purchased a 2002 Audi TT (for a bit of fun). Since getting the TT the Focus hasn't moved off the drive and I realise that actually we don't need 3 cars. I have the opportunity to sell the Focus and pay off the finance (except for £2.5k which is negative equity from another car - long story). If I pay it off now, we save £1.5k in interest and will save £320 a month in car payments as well as insurance and tax. Does this seem like a sensible thing to do? I understand I will have basically rented the car for the last 2 years but at the same time I feel a bit like I'm throwing money away by keeping it (3 years left to pay on the finance). Am I missing something, or does this seem like a sensible thing to do? Many thanks in advance.
Wee Thistle xx
I'd love some opinions or help with what I'm thinking. My husband has a work runabout (2004 VW Polo), I have a Ford Focus (2017) and have just purchased a 2002 Audi TT (for a bit of fun). Since getting the TT the Focus hasn't moved off the drive and I realise that actually we don't need 3 cars. I have the opportunity to sell the Focus and pay off the finance (except for £2.5k which is negative equity from another car - long story). If I pay it off now, we save £1.5k in interest and will save £320 a month in car payments as well as insurance and tax. Does this seem like a sensible thing to do? I understand I will have basically rented the car for the last 2 years but at the same time I feel a bit like I'm throwing money away by keeping it (3 years left to pay on the finance). Am I missing something, or does this seem like a sensible thing to do? Many thanks in advance.
Wee Thistle xx
0
Comments
-
Yes, sounds very sensible.
But what do you mean 'except the £2,500 negative equity'?
Who is paying for that?1 -
I'm sorry, I wasn't very clear. What I mean is the sale of the car will clear all except the £2.5k, which I will pay off myself.DrEskimo said:Yes, sounds very sensible.
But what do you mean 'except the £2,500 negative equity'?
Who is paying for that?
Wee Thistle xx
0 -
Oh I see!WeeThistle said:
I'm sorry, I wasn't very clear. What I mean is the sale of the car will clear all except the £2.5k, which I will pay off myself.DrEskimo said:Yes, sounds very sensible.
But what do you mean 'except the £2,500 negative equity'?
Who is paying for that?
Wee Thistle xx
Yup, definitely a sensible option!
1 -
Perhaps now you have decided to 'only' have two cars you might sell another one and manage with one car?
Use a bike, public transport a bit?0 -
Let's see.
You've got a rapidly-depreciating car sat in the drive doing nothing, which is costing you interest on the money you owe against it, as well as insurance and tax...
And you're wondering if you should keep it or get rid of it.
Hmm. This one could go either way.1
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