What To Do?

[mainline 2 1 Cars]

Am thinking I might have to sell the 205. Sadly its mainly because I am worried about interest rates going up, the effect on my mortgage when they do, and the fact that my employers have just stopped our bonus scheme, which was how I used to be able to afford to enjoy the 205 and the occassional holiday.

 

With £1500 or whatever I might get for it, I could pay off the only credit card I have and the last remnents of my student loan, saving me about £120 per month. Plus I'd be saving money not running a second car. It'd just be hard to wave goodbye to a car I have owned for nearly five years now though, and to me, its worth much more than £1500. The car is quite nicely sorted and I having had it a good while, I know all of its faults and problems, which is reassuring. I always try to kid myself that it doesn't cost me much because I only do about 2000 miles a year, but when you add in insurance, tax, parts, MOT, service items and fuel its obviously not cheap.

 

Don't know whether to keep the car and just see how it goes, trying to save money elsewhere, lay it up and not use it for a bit, MOT it in April (I think) and sell it, or flog it now. Any advice? Anyone been in a similar situation?

 

Cheers

 

Ian

[kyepan 291]

sell it, clear your debts.

 

come back later when things are rosy. don't suffer debt if you can asset strip.

 

J

[Anthony 1,003]

I personally wouldn't worry too much about interest rates going up in the near future as I really can't see any increases within the next six months or so - the economy and housing market is too fragile, and likely to get worse rather than better in the immediate future IMO, and inflation is largely being driven by factors that interest rate rises will have little effect on.

 

Lack of bonus payments that you've grown used to and the small debt that you have are more the concern I would imagine, but only you can really weigh them up against keeping the car and what it means to you, and what impact on other areas of your life keeping the car would bring.

 

As per Justin's comment above, I would much rather be debt and worry free than have luxuries and toys, but equally, I wouldn't immediately rush to sell my pride and joy without first exploring other avenues if the issue is likely to only be short term.

 

It's also worth looking much closer into your own finances / spending habits and seeing what changes you could make - it's all the little things that make the difference I found, that fiver here, tenner there, which quickly adds up to significant amounts over the month or year. There's plenty of examples, but stuff such as taking lunch to work with you rather than buying a meal everyday, doing less takeaways and eating out, pissing less up the wall on a Friday night, and taking advantage of deals to "stock up" on commonly used household items rather than buying them at full price at the time. Certainly I was shocked at how much little changes like that added upto every month...

 

If you are going to sell the car though, I'd certainly wait until after Easter when the market for cars such as a 205 GTi tends to pickup - you're not currently in a position where you're forced to sell, so you might as well wait a short while to when you'll be more likely to be able to sell for good money.

[Anthony 1,003]

Also, would you need to replace the 205 with something else, or is it purely a toy?

 

If it would need to be replaced with another car, then many of the costs associated with the 205 would be broadly similar with other cars, meaning that potential savings would be much reduced.

[Tom Fenton 1,541]

I've been through some times with things looking bleak, my advice would be to park it up and see how tungsten go financially. As above, for the 1500 or so you might get for it, it is not hard to gain from other ways, and keep your car. Pull your belt right in for a bit and you could settle the loans etc with the savings and still have the 205 for when things pick up.

It is a funny time for many people at the moment, personally I work in steel which was one of the first sectors to be hit hard. From you saying that your company has just cut bonuses says that your industry is just starting to suffer. However it can come back just as quickly as it goes, so try and hold out.

[damien 22 1 Cars]

mite be worth locking the car up in a garage to save some pennys and cutting back on spending.

just remember its not just you being hit with the lack of money.

i had to take a pay cut just to keep the money coming in, ive got the 205 in storage and we have cut back big time on going out and treats. even tho we have 5k less a year now we have £150 more a month to spend.

you just need to keep your head held high and budget your money right

[jeremy 70]

Keep it if you want to and can afford too. If not then sell it. What I will say is if it is your toy and it makes you smile then only you can put a price on that. I can however understand this situation and as such mine has only been used 2 weeks in the last 6 years, although to be fair I did used to own two and used that as the daily driver up until 3 and a half years ago and I sincerely wished I'd never sold that one too.

Edited February 17, 2011 by jeremy

[Alan77 78 1 Cars]

Keep it. Where else can you get such fun driving for the relatively cheap outlay of a 205 gti?

As others have said above, do some number crunching and really watch the finances to compensate.

If there are more economically tough times ahead, surely your much loved car can be a welcome vice to give you a lift.

[harryskid 193]

If you smoke, give it up and save!

[Henry Yorke 269 3 Cars]

Have an eBay fest. You will have loads of crap you have acquired over the years that you can release capital from. Also go to your parents and see what old stuff you have there you can sell. They may even have something of value which they don't use that you can sell. I sold 60 model cars I had collected over the years on eBay once. I raised over a grand and repainted my CTI. Things like old BMXs can fetch more in parts than complete. Big things sell well if you are prepared to post and it is not actually that expensive if you find a courier.

Another way is do a scrap yard run. Look at the prices of some things on eBay and see what you can pick up cheap. 205 arch trims seem to sell well. People used to pay good money for Citroen C5 wheels which have minimal scrap value in weight

[2-Pugs 57]

Some good suggestions above. I too have done what Henry says, it can be surprising the value in old toys and clutter in your loft. But if you have no other way forward and having thought about it for a couple of months, I would tend to agree with Kyepan. Sell it and get rid of the debt millstone around your neck. There'll always be another nice well sorted one you can pick up in a years time or so, once your head is comfortably above water.

Edited February 17, 2011 by 2-Pugs

[Alastairh 47]

2000 miles per year is very little to be paying tax, mot, insurance, maintance and modifications per year for a pure luxury. As said, give it a month or so. Keep an eye on things and wait for the spring market to start and assess the situation then. I've been in a similar boat over the last couple of years. Making sure my little girl has roof and food is far more important than a toy that gets used 2 times a month.

 

Al

[mainline 2 1 Cars]

I really appreciate this guys, some very good advice. I have been taking photos of Wii games, DVDs and other bits and bobs, so the ebay clearout is in full swing. I sat down and discussed it with the wife and amazingly, she thinks I should keep it. Having someone who understands that tinkering with an old motor is actually enjoyable for me is frankly quite amazing!

 

I've decided to follow most of the advice on here, my packed lunch will be in full effect from Monday, as I often end up succumbing to the temptation to go out for lunch, which is always about a tenner a time. We have also decided to cook more at home and keep the fridge well stocked. We will stop going to the pub and start doing a proper supermarket run. My wife has resolved to stop buying clothes, and I will stop buying video games.

 

What I'm going to do with the 205 is to keep it until my pay review in April. I spoke to one of the partners yesterday and he explained about the bonus cuts. It was to avoid redundancies, so I am in agreement with it, but he also said that the best 5-10% of people will be getting good pay rises to compensate. He hinted that they would be looking after me, so I am hopeful.

 

The 205 won't actually cost me anything until then if I don't use it as its taxed, tested, full of nice new oil and just waiting to be driven!

[shalmaneser 26]

I think you did the right thing keeping it, we all get used to a certain type of living and relatively minimal changes can result in significant savings - your packed lunches, for example.

 

TBH, it's got to the point now where a clean 205 is an appreciating asset, so it makes sense to keep it.

[notamondayfan 44]

I also parked up my 205 when I took a pay cut. I couldnt afford to run it, and didnt really need to either, it was a luxary, and an expensive one at that. I could have continued to use it, but I would have ended up running it into the ground as I wouldnt have been able to maintain or service it properly. So instead I parked her up, and I go and start her every now and then, but it's doing no harm sat there.

Like you, I have considered selling up and clearing debt, but I use the 205 as motivation to keep on working hard. I figure out ways to pay off debt other ways. To me selling tresured items to pay for debt isn't going to be any good, as I would be debt free, but miserable!

I dont know if Ill get her back on the road this summer, or next, but it's waiting there and isnt going anywhere!

[M_R_205 5 1 Cars]

If its possible, cycle to work... will end up saving a fortune,

 

I was in a similar situation about 8 months ago when i bought my first place, i drove the pug till the tax /mot ran out and parked it in my mates garage, now im slightly more flush its back out and all be it only a 1.4 now, up and running again as a second car

 

Paul.

[Masekwm 2]

Wii Games = Buy a copy of Indiana Jones and never buy another