Selling the car...

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Garrlor
Garrlor Posts: 7 Forumite
in Debt-free wannabe
Hi all,

A question for you with regards to being a debt free wannabe. I am currently considering selling my car (12 plate C Max, 51K Miles) and trading down to an 08 BMW 3 series tourer (144K Miles) while using the difference in money to clear approx 85% of my credit card debt. I would then be working with the wife to clear the rest of it over about 3 months before we smash the snot out of our loan for a couple of years.

I would be saving approx £20 p/m on insurance, which pays for a servicing plan for the BMW to cover 3 services over 3 years, and the 3 MOT's it would require. I think that I can get away with running this car for 3 years with the mileage I do and not have too many issues (hopefully!). This is probably the biggest draw for me, as I only use the car for shopping trips (1 every 10 days with our meal planning), trips to a local park (12 mile round trip to work the car a little) on a weekly basis and a bi-monthly 150 mile round trip to visit family.

If I dont change the car down then I am looking at approx 8 months to clear the card before I then start on my loan. I am unsure which is the best way to procede with this to be honest.

I know where all my money is going, I have a good handle on our budget now and I have completely changed how we meal plan and shop etc so I am certain that I can generate the cash I need to smash my loan in half as long as we dont use the credit card. And I will be investigating 0% cards in the near future, but I am looking at the quickest fix to maximise my debt repayment.

Ideas?
«1

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  • System
    System Posts: 178,094 Community Admin
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    Sounds like you have a plan.
    How much do you have in your SOA for car maintenance? Is it enough to cover the risk of breakdown / extra expenses for stuff failing if you get the higher mileage vehicle?
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Could even have more money for debts if you went for a less prestige car, prestige is the wrong word to use but cant think of another alternative at the minute.
  • sourcrates
    sourcrates Posts: 28,888 Ambassador
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    edited 13 April 2018 at 4:44PM
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    As long as the service history is good, the mileage should not matter too much.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • datlex
    datlex Posts: 2,239 Forumite
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    Do you really need a car? I know people shudder at the thought of giving up their car. But have you actually looked into it. Try going on Google maps and looking at bus stops near work and home for example and researching local bus companies, time tables, monthly fares (single fares tend to be relatively expensive). Can a bus or train get you to work on time? Would the monthly fare be less than petrol plus insurance plus maintenance?
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • fatrab
    fatrab Posts: 1,231 Forumite
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    You don't need a high mileage BMW 3 Series Tourer would be my thoughts. The servicing and repair bills would be a lot more than they would be for a Focus or Fiesta. If you're serious about smashing the debt, buy the most efficient car possible. I'm sure you'd get a decent low mileage Ford the same year and the same price as the BMW.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

  • Fireflyaway
    Fireflyaway Posts: 2,766 Forumite
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    I think selling the car is a great idea if it's going to clear 85% of your debt. The mileage on the alternative car is high though. Could you get a different make for a similar price that has lower mileage? I'm probably wary because my car had 130k and suddenly have up at the start of the year! Should that happen you then face expensive repairs.
  • alan_d
    alan_d Posts: 363 Forumite
    First Anniversary First Post Mortgage-free Glee!
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    Fireflyaway wrote: »
    I think selling the car is a great idea if it's going to clear 85% of your debt. The mileage on the alternative car is high though. Could you get a different make for a similar price that has lower mileage? I'm probably wary because my car had 130k and suddenly have up at the start of the year! Should that happen you then face expensive repairs.
    Don't get too worried about higher mileage provided the car has history to prove it's been maintained.
    I have a Volvo V70 which I originally bought on 120k miles (now on 256k) and another bought on 125k (now on 165k), neither have needed much other than maintenance in that time. Sure there have been a few expensive-ish repairs over the years, but compared to the cost of a lower mileage, younger car, i'm quids in!
    Seems a lot of people get worried once a car passes 100k and it really doesn't matter if it's been properly maintained.
  • Garrlor
    Garrlor Posts: 7 Forumite
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    Thanks for the responses.

    Unfortunately I need a car as we are semi rural with hit and miss public transport, so if I want to shop or get out etc then i have to have one. Also, I have a daughter who lives 80 miles away that I see every couple of months. Train fares would mount up quickly.

    I am looking at the 3 series tourer as it has enough space for my 2 kids in car seats with room for my other daughter to squeeze in when she is here. As I have to fit 2 car seats in with room in the boot for a pushchair and shopping etc. Hence why I'm not looking at a focus or a fiesta. In my area, there is very little of a suitable size and price, unless I trade in for something more expensive. The ages of the cars are similar no matter what, the only major difference is miles. I'm going to check out the beamer again with a friend who has an 09 5 series with 130k, as he knows what to look for. I want to go through the history in full anyway.

    As for the cost, unless something goes wrong my services and mots are 20 a month, and things like brake pads or tyres aren't so much more expensive than the c max. I know in the next 12 months I need disks and pads, plus 2 new tyres on the c max so it's a moot point. The dealer is happy to put 4 new tyres on the BMW and MOT it before I get it.

    I am going to take the BMW to a local specialist for a health check if I buy it, just to make sure everything is ok.

    Once the credit card is gone and I start paying off the loan, every spare penny is going off it and I will shift my budgets as and when I need to buy things. If i need something expensive then I'll use the credit card and switch for a month or two hours minimise interest payments, keeping the main focus on the loan.
  • bouncydog1
    bouncydog1 Posts: 2,696 Forumite
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    What about a Ford Focus estate? Loads of room in the estate part and from what I recall plenty of room in the back.
  • Garrlor
    Garrlor Posts: 7 Forumite
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    Just no availability of anything like that. I can get a petrol Insignia for 4.5K, but that leaves me with only about 1K to pay off the card. Still good, but not great.
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