Wrong car purchase/loan worries

Pinkismyfavouritecolour

Hi 

hopefully someone can give me some guidance regarding my car and loan situation. 

In January 2024, I brought a car valued at £11k. I did my research and it seemed the value of the car was normal. I also took out a loan to cover the car. 

Unfortunately the car depreciated really quickly and it’s now worth £8k, but it costs a fortune to run, but if I was to sell it, I’m scared I would have to increase the loan which I can’t afford. 

I know I have no rights with Available Car, where I brought the car from, but can anyone help me with this huge mistake I’ve made - I just want a cheaper car to run and not increase my loan which I have 4 years left to pay. If anyone has any advice in helping me, that would be great. 

Thank you 

Iceweasel

What car?
How old?
More info needed!

DullGreyGuy

Pinkismyfavouritecolour said:

hopefully someone can give me some guidance regarding my car and loan situation. 

In January 2024, I brought a car valued at £11k. I did my research and it seemed the value of the car was normal. I also took out a loan to cover the car. 

Unfortunately the car depreciated really quickly and it’s now worth £8k, but it costs a fortune to run, but if I was to sell it, I’m scared I would have to increase the loan which I can’t afford. 

I know I have no rights with Available Car, where I brought the car from, but can anyone help me with this huge mistake I’ve made - I just want a cheaper car to run and not increase my loan which I have 4 years left to pay. If anyone has any advice in helping me, that would be great. 

What advice do you need? 

How much an asset is worth in the future is not in the control or the responsibility of the merchant. Depreciation doesn't always go to plan. 

You say you got a loan... presumably this was a  normal high street loan to your bank that you then used to pay the dealer rather than car finance like PCP or HP which the car sales person organises and the money is paid directly to them?

Assuming it is a loan then sell the car for the best price you can and either use the circa £8k to buy a different car, add more money to get a more expensive car or use it to pay off most the loan and save on interest. Interest rates have gone down since Jan so you may be able to get a cheaper loan

Pinkismyfavouritecolour

Thank you. Just what I needed! Yes it’s a high street bank I got the loan from. I’m a newbie at this kind of problem, so any advice is greatly appreciated. 

Pinkismyfavouritecolour

Iceweasel said:

What car?
How old?
More info needed!

It’s a 2018 Peugeot 308 GT Line. Do you need any more information? Thank you. 

sheslookinhot

What do you mean by “a fortune” to run ? Repair costs, replacing wearable items or fuel costs.

How much extra are these costs over say 1.6 litre car ?

Consider the difference versus your potential “losses” to change the car.

Pinkismyfavouritecolour

sheslookinhot said:

What do you mean by “a fortune” to run ? Repair costs, replacing wearable items or fuel costs.

How much extra are these costs over say 1.6 litre car ?

Consider the difference versus your potential “losses” to change the car.

Hi - the car insurance is expensive, the cost to fill it up I find a struggle (£100 per month but I work from home). The loan repayments are too high for me along with £190 per year car tax and MOT in January. Thank you. 

jimjames

Pinkismyfavouritecolour said:

sheslookinhot said:

What do you mean by “a fortune” to run ? Repair costs, replacing wearable items or fuel costs.

How much extra are these costs over say 1.6 litre car ?

Consider the difference versus your potential “losses” to change the car.

Hi - the car insurance is expensive, the cost to fill it up I find a struggle (£100 per month but I work from home). The loan repayments are too high for me along with £190 per year car tax and MOT in January. Thank you. 

Unfortunately from these numbers it sounds like a car might not be a viable option for you at the moment. £190 pa tax is pretty low along with £100 a month fuel. You've not said how much the loan/insurance are but if you can sell the car and get £8000 to clear most of the loan it might be the best option.

Iceweasel

Re: "cost a fortune"
Most people would not consider those running costs to be high at all.
You should get approx 40mpg so a 308 is not that thirsty.
Perhaps you need to reassess your needs and capabilities to meet them.

sheslookinhot

Pinkismyfavouritecolour said:

sheslookinhot said:

What do you mean by “a fortune” to run ? Repair costs, replacing wearable items or fuel costs.

How much extra are these costs over say 1.6 litre car ?

Consider the difference versus your potential “losses” to change the car.

Hi - the car insurance is expensive, the cost to fill it up I find a struggle (£100 per month but I work from home). The loan repayments are too high for me along with £190 per year car tax and MOT in January. Thank you. 

Is it a diesel engine ? If so £100 per month on fuel is over 400 miles, maybe 450 miles per month. So a lot of miles if working from home. 

Do you really need the car, as said by others ? What about bus or train ? If you do need a car there won’t be that many cheaper options. Will your insurance come down in price this year ?

Mr.Generous

Don't purchase anything with 300 bhp+ and £600 road tax. I also wonder what I was thinking sometimes. I need something faster to outrun the depreciation!!