Change of car on finance due to new job

[rdb85]

Ive had a look I was thinking of keeping with an Auto as its not essential but I do like them:

A Class:

https://www.autotrader.co.uk/classified/advert/201...

Jag:

https://www.autotrader.co.uk/classified/advert/201...

Focus:

https://www.autotrader.co.uk/classified/advert/201...

[ninjag]

I'd avoid that Jag

[rdb85]

ninjag said:

I'd avoid that Jag

Oh right, are they not very good? I would also consider a Mondeo but they are quite large.

[Mgd_uk]

How about looking at it this way.

Your about to blow £2000 getting out of negative equity.

How about you keep driving the Lexus and put that £2k towards running the car, £2000 will get your tax at £300 a year for 2 years and £1400 worth of fuel, that gets you a LOT of miles over the course of 2 years.

[rdb85]

Mgd_uk said:

How about looking at it this way.

Your about to blow £2000 getting out of negative equity.

How about you keep driving the Lexus and put that £2k towards running the car, £2000 will get your tax at £300 a year for 2 years and £1400 worth of fuel, that gets you a LOT of miles over the course of 2 years.

That’s a good point. As I say I’m going to keep hold of the Lexus. Try and run it for a while to see what mpg it will get. But I’m paying around £188 a month. So I could keep hold of it, as I can’t see it going below £4000, hopefully.

[jjr1]

Keep the car. You clearly haven't a clue about swapping one debt for a bigger debt as that is what is going to happen if you change your car. Where do yo think the negative value goes?

The next car you will buy already has been bought by a trader and you are going to pay retail on that? Who do you think pays his profit margin? The magic fairies?

[rdb85]

jjr1 said:

Keep the car. You clearly haven't a clue about swapping one debt for a bigger debt as that is what is going to happen if you change your car. Where do yo think the negative value goes?

The next car you will buy already has been bought by a trader and you are going to pay retail on that? Who do you think pays his profit margin? The magic fairies?

Bit harsh. I think I’ve an idea of where the profit margin goes etc. I’m going to keep the Lexus and run it for a while 6 months or maybe longer. As you usually have a trial period in any new job.

As I need to gauge an overall cost with what the Lexus would be like in terms of fuel, and if anything were to happen that would see any huge bills. I could get a warranty but at a cost of £795. Which for two years is not bad. But I would need to see if they could offer that.

It’s too early to tell but I’m looking at options and working out numbers. Unfortunately I could not find any magic fairies to help me with that, so I used a spreadsheet and some formulae.

[Lukas239]

rdb85 said:

. I could get a warranty but at a cost of £795.

Don't know how other people feel but I can't imagine non-manufacture warranties are ever a financially good option.

Instead put 800 to 1K away in savings and use that to fix anything should it go wrong. That way your not unnecessarily out of pocket to a warranty that may try and wiggle out of responsibility (pessimistic I know but you hear stories).

Also, I think we would all agree here that trying to save money but getting into more debt/credit is not wise.

[Draculaw]

Lukas239 said:

Don't know how other people feel but I can't imagine non-manufacture warranties are ever a financially good option.

Instead put 800 to 1K away in savings and use that to fix anything should it go wrong. That way your not unnecessarily out of pocket to a warranty that may try and wiggle out of responsibility (pessimistic I know but you hear stories).

Also, I think we would all agree here that trying to save money but getting into more debt/credit is not wise.

I've had 1 third party warranty given by a dealer with a sale so far. Not worth the paper it was written on. Warranty would cover £300 of the £900 repair the car needed after a chain snapped 300 miles into owning it. Ended up having to recover from dealer.

Completely agree on the putting £800-1000 away in an account somewhere (especially if it can get some interest) and having a car slush fund available for anything which goes wrong.

[rdb85]

Lukas239 said:

Don't know how other people feel but I can't imagine non-manufacture warranties are ever a financially good option.

Instead put 800 to 1K away in savings and use that to fix anything should it go wrong. That way your not unnecessarily out of pocket to a warranty that may try and wiggle out of responsibility (pessimistic I know but you hear stories).

Also, I think we would all agree here that trying to save money but getting into more debt/credit is not wise.

These are Lexus extended warranty’s I got one with the car. It paid for a new alternator £600, rear callipers £320 and a battery £125. You can pay monthly for it and cancel it at any time.

I may do that and put money away each month for the car. It’s a good idea. You are right I am trying to save money. Not accumulate more debt. I will see how it goes with the job.

[Leicester Loyal]

Golf MK4 TDI.

[GreatGranny]

rdb85 said:

So I could keep hold of it, as I can’t see it going below £4000, hopefully.

Putting 20k miles per year on it will hurt the resale value and it will go below £4k at some point.
Just look at older Lexiis (?).

[Car-Matt]

To save yourself £2k running costs over the Lexus doing 20k a year what are you going to get????

You just need to run it and suck it up till you can sell it and break even,

[rdb85]

Car-Matt said:

To save yourself £2k running costs over the Lexus doing 20k a year what are you going to get????

You just need to run it and suck it up till you can sell it and break even,

Its not £2k running costs its £2k of negative equity between what I owe and what the car is worth currently. I have already said that I am going to keep the Lexus and run it for a while, and see how it goes. it was just the concern of the fuel costs as its 3x the mileage I do now. But I will suck it up and pay it as you say.

[rdb85]

GreatGranny said:

Putting 20k miles per year on it will hurt the resale value and it will go below £4k at some point.
Just look at older Lexiis (?).

Its 10 years old with 71k on it so it's quite low for the year, I know that these engines can do silly mileage. I am going to keep it and run it as its a lot to lose £2k its not a few hundred pounds. The car is faultless and does not require anything to date. At this stage financially it makes more sense to just keep it, run it and then see what it costs over a month of use. I am guessing around £300 a month in fuel.

[keo]

A lot of the time (unless a really drastic change in mileage) the car you currently own is the cheapest car to run.
I’d keep the Lexus it sounds reliable. Unless you want a change and this is man maths?

[rdb85]

So I’ve just done a run to where the job is and got 43 mpg which is pretty good I think from a 2.5 v6. Do you think a diesel could beat that? I think it would have to do 60+mpg to be worth it, due to the price difference on fuel currently.

Edited by rdb85 on Thursday 18th April 22:11

[iphonedyou]

If 20k a year doesn’t suit a diesel, what does!?

[rdb85]

iphonedyou said:

If 20k a year doesn’t suit a diesel, what does!?

I’m not saying that it doesn’t, but as I’ve never owned one, or done anything that’s over 5k a year then I was just after some simple advice. That’s all.