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    • KHouldey
    • By KHouldey 7th Aug 18, 11:09 PM
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    KHouldey
    Should I sell my car?
    • #1
    • 7th Aug 18, 11:09 PM
    Should I sell my car? 7th Aug 18 at 11:09 PM
    Hi everyone,
    I recently acquired a Fiesta ST for 12k and I love it! It's perfect in many ways (except practicality perhaps!) but as a pre-first time buyer, I'm very conscious that a lot of money is tied up in something I could otherwise be using for a deposit.

    Currently I have around 33k saved across my ISA and LISA. PXing the car for something cheaper could net me around 9k before the exchange. Of course the depreciation sucks but it might be worth it for extra savings. The plan is to move in with my partner in around a year or two. Driving is essential for my job so I need a car.

    I'm just wondering if it's worth relinquishing a car I love to get some extra cash. At the end of the day a house is more important than a car, right? Any input would be greatly appreciated!

    TL;DR - Should I take a 3k hit on a 12k car to get something cheaper and pocket the rest for a house?
Page 1
    • wgl2014
    • By wgl2014 7th Aug 18, 11:22 PM
    • 754 Posts
    • 483 Thanks
    wgl2014
    • #2
    • 7th Aug 18, 11:22 PM
    • #2
    • 7th Aug 18, 11:22 PM
    Not really if you are only going to need the money in a year or two.

    If I read that correctly you will take a 3k hit in depreciation and then still need to buy another car?
    • KHouldey
    • By KHouldey 7th Aug 18, 11:34 PM
    • 8 Posts
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    KHouldey
    • #3
    • 7th Aug 18, 11:34 PM
    • #3
    • 7th Aug 18, 11:34 PM
    Correct, AutoTrader is reckoning I'll get 9k-10k for the car. As I need to drive so much I'll need to spend around 3-4k on a decent car which will leave me with around 6-7 to add to my savings.
    • Mercdriver
    • By Mercdriver 8th Aug 18, 12:15 AM
    • 1,941 Posts
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    Mercdriver
    • #4
    • 8th Aug 18, 12:15 AM
    • #4
    • 8th Aug 18, 12:15 AM
    Correct, AutoTrader is reckoning I'll get 9k-10k for the car. As I need to drive so much I'll need to spend around 3-4k on a decent car which will leave me with around 6-7 to add to my savings.
    Originally posted by KHouldey
    Have you budgeted within that for the extra maintenance that the cheaper car might require?
    • KHouldey
    • By KHouldey 8th Aug 18, 12:34 AM
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    KHouldey
    • #5
    • 8th Aug 18, 12:34 AM
    • #5
    • 8th Aug 18, 12:34 AM
    The cars I'm looking at have just been serviced. As they're older they may need a bit more attention over time but for now the extra savings seem worth the change.
    • Mercdriver
    • By Mercdriver 8th Aug 18, 1:08 AM
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    Mercdriver
    • #6
    • 8th Aug 18, 1:08 AM
    • #6
    • 8th Aug 18, 1:08 AM
    The cars I'm looking at have just been serviced. As they're older they may need a bit more attention over time but for now the extra savings seem worth the change.
    Originally posted by KHouldey
    By service do you mean full service with everything checked and not simply an oil and filter changed. Have the Cam belts/chains been checked alongside the water pump? When it comes to a car that has been on the road some time with miles (and don't assume that low mileage for the year is a good thing) then there are many expensive things that can go wrong, and if you find your engine going pop you might struggle to get in to work to pay your mortgage.

    You have to do the sums carefully. A 3 - 4k car is really costing you 6 - 9k. You will need to set aside money for work to be done bearing in mind it is far more likely that you will need that money for a rainy day with the car, and may not actually have it available for use.
    Last edited by Mercdriver; 08-08-2018 at 1:55 AM.
    • KHouldey
    • By KHouldey 8th Aug 18, 6:32 AM
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    KHouldey
    • #7
    • 8th Aug 18, 6:32 AM
    • #7
    • 8th Aug 18, 6:32 AM
    Thanks for raising the issue. This is bearing this work in mind, yes.
    • foxy-stoat
    • By foxy-stoat 8th Aug 18, 9:34 AM
    • 2,452 Posts
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    foxy-stoat
    • #8
    • 8th Aug 18, 9:34 AM
    • #8
    • 8th Aug 18, 9:34 AM
    If you own it outright then keep it, unless you are short on your deposit by 5K.

    If your paying finance on it then selling it is an option I would look at.
    • KHouldey
    • By KHouldey 8th Aug 18, 9:52 AM
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    KHouldey
    • #9
    • 8th Aug 18, 9:52 AM
    • #9
    • 8th Aug 18, 9:52 AM
    So it's not worth changing for the extra dough?
    • Herzlos
    • By Herzlos 8th Aug 18, 10:01 AM
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    Herzlos
    So it's not worth changing for the extra dough?
    Originally posted by KHouldey

    Not right now, no. You'll take a hosing on the trade in and will get an older, unknown car. The cheapest car to drive is almost always the one you currently own.


    So you're as well holding onto it for now, and you can sell it if you need to top up your deposit any.



    How did you purchase it? Cash/HP/PCP?
    • KHouldey
    • By KHouldey 8th Aug 18, 10:08 AM
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    KHouldey
    Thanks for your input I actually traded a newer car for it so it's fully paid for. I think due to this I'm just seeing it as extra money I could bank, even despite the depreciation.
    • foxy-stoat
    • By foxy-stoat 8th Aug 18, 10:20 AM
    • 2,452 Posts
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    foxy-stoat
    Thanks for your input I actually traded a newer car for it so it's fully paid for. I think due to this I'm just seeing it as extra money I could bank, even despite the depreciation.
    Originally posted by KHouldey
    If you dont need the extra 5K then I wouldnt bother if you own it outright - you have already taken a hit on the last car you chopped in for it.
    • barnaclebill
    • By barnaclebill 8th Aug 18, 12:12 PM
    • 265 Posts
    • 148 Thanks
    barnaclebill
    If it's a good car that you know it's history it would be better to keep it than to get another older car that could have hidden problems.
    You need a car so keep it as long as possible, well serviced and as long as it stay's reliable use it, if you get 10 years use that makes it more cost effective.
    • KHouldey
    • By KHouldey 8th Aug 18, 12:24 PM
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    KHouldey
    Thank you, both are good points
    • jimjames
    • By jimjames 8th Aug 18, 1:30 PM
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    jimjames
    You have to do the sums carefully. A 3 - 4k car is really costing you 6 - 9k. You will need to set aside money for work to be done bearing in mind it is far more likely that you will need that money for a rainy day with the car, and may not actually have it available for use.
    Originally posted by Mercdriver
    I don't agree that a 3k car will cost 6-9k. That's a serious amount of work you're suggesting it would need. Buy correctly and you will have the normal servicing and maybe minor work but nothing of that sort of scale.
    Correct, AutoTrader is reckoning I'll get 9k-10k for the car. As I need to drive so much I'll need to spend around 3-4k on a decent car which will leave me with around 6-7 to add to my savings.
    Originally posted by KHouldey
    In 2 years time you car will probably be worth 5-6k. so you'll have lost around 4k on depreciation. If that 4k would mean you can move 6 months earlier then it may be worth it but in the scale of 33k that doesn't sound significant.
    Last edited by jimjames; 08-08-2018 at 1:33 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • KHouldey
    • By KHouldey 8th Aug 18, 1:49 PM
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    KHouldey
    True, I guess in the grand scheme of things it won't make too much of a dent. Although saying that, the dent would be more effective now rather than later, especially if I downgraded to something reliable.
    • Herzlos
    • By Herzlos 8th Aug 18, 2:06 PM
    • 7,673 Posts
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    Herzlos
    I don't agree that a 3k car will cost 6-9k. That's a serious amount of work you're suggesting it would need. Buy correctly and you will have the normal servicing and maybe minor work but nothing of that sort of scale.
    Originally posted by jimjames

    He's just talking about the trade in. If you take a 3k hit on the trade in on your car, and buy another car for 3k, you're out 6k (theoreticaly, anyway, as you won't get the 3k back on the car by that point unless it's via an insurance payout).
    • Mercdriver
    • By Mercdriver 8th Aug 18, 2:09 PM
    • 1,941 Posts
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    Mercdriver
    I don't agree that a 3k car will cost 6-9k. That's a serious amount of work you're suggesting it would need. Buy correctly and you will have the normal servicing and maybe minor work but nothing of that sort of scale.
    Originally posted by jimjames
    You perhaps need to read my post a little more carefully. I wasn't referring to repair costs. Depreciation is the beast here. The amount that might be needed for maintenance and repairs is an unknown entity - compared to the car the OP has now.
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