Changing car on finance advice

snowdrop33

So I just wanted to get other people’s views on my current situation and plan. 

My goal is I’m trying to reduce my overall debt and outgoings as I have debt to repay and I would like to reduce my hours in the future. I’ve made some bad decisions and I accept I’m probably going to lose a chunk of the money o put into the car. 

We have two young children under 3 so we need a good size car for car seats and double pushchair (although hopefully this won’t be for too long) we have a dog also. 

I currently have a jaguar f pace 2018 it cost about £23500 new and I put in about £8k deposit.

my payments are £205 a month and I have another 2.5yrs then I have a balloon payment of about £12500

i also pay a fee £33.50 a month for a service and warranty plan for this car

tax is £45 a month this would reduce in sept time I think. 

Insurance is about £40 a month

the car I’m thinking of buying is a vw Tiguan - safety, reliability is really important. It is a 2015 £10995

the garage will pay off my finance on jaguar and give me £3k towards the Tiguan. So I need to finance about £8k. I have £3k in savings I could use as well. So that would bring this down to £5k.

this I can get in a loan for £155 over 3 yrs all paid. 

So what I’m asking is does this seem like a good plan? Or is this another bad financial decision. If you read all of that then thank you

facade

On the face of it, the Jag will cost you 30 x £205 = £6150, and you have to hand it back and have nothing.

The VW will cost you £3000 + 36 x £155 = £8500, and after 3 years you own it, but have paid £2350 more.

So will it be worth £2350 or more then?

Can you stop paying the service contract?

Is the VW tax significantly cheaper?

Strikes me the only real reduction is going to be tax, service plan and possibly fuel, but in 3 years you will have an ancient VW that could break down at any moment, I'm not sure if you are gaining anything.

You could "reduce" the Jag monthlies to £155 by chipping into that £3k, it will only cost half of it.

ratrace

Have you got the sums corrects is the jag really a 6.5 year pcp thats a long time for a pcp deal. i can understand why you are keen to reduce the debt looking at your sig i think its the correct thing to do but, if you keep the jag long tern untill the end of the contract it would have cost you about £28k including the baloon so changing may be a good idea providing the number stack up