- 5 years ago
Bees, I need some advice! I currently own a 2006 model car – a Holden. I bought it new almost 7 years ago. It’s a good, mid-sized car and I owe no money on it. The only money I owe is $1700 on a personal loan – which if I did get a loan, I could see if the bank could consolidate both loans to have one payment. That is my only debt. Rent at the moment costs $140 a week, plus bills and groceries. I have no savings. I am gainfully employed and on good money.
It’s done almost 90,000km. It’s coming up to a major service (around $1000). I am feeling that it may now start to cost money (days after the warranty, the compressor for the air conditioner blew up. $500 to fix. Nothing about replacing anything in this car is cheap or easy – even my auto electrician says that they aren’t easy cars to work on!). Not only that, but the car is silver and starting to oxidise in parts and looks crappy – I am concerned that resale will be difficult the longer I hold on to it. I looked up a guideline on sale prices for my car and it’s around $9000-$12,000 at a dealer. It’s having little things start to go wrong – wiper bottles are no good, coolant level sensor no good, cruise control doesn’t always work (when this happens, the check engine light is on). It had a service a few months ago (regularly serviced) and it’s telling me now it needs another. While only little things, I have concerns these, over time, could lead to bigger things and I’ll be throwing money at a car that will continue to lose value.
The car I’m looking at is a medium size SUV (Kia) for around $26,000. Has a 5 year warranty and I believe capped price servicing for those 5 years. I’m also eyeing off a Suzuki Swift Sport, around the same price but much smaller – but it doesn’t seem to make sense to upgrade to a smaller car at this point when I could get something bigger/more practical for the same price. I would trade in the car to a dealer which would lessen the amount I need to loan.
I love the fact that I own my car, and I said I’d never get another loan, but watching the paint disintegrate and knowing that if I leave it a few more years, its resale with continue to dwindle and the cost of maintaining it will increase… I’ve researched the paint side of things, and I now know that buying a silver car was a huge mistake. Only way to fix it is to repaint it.
I just need some advice. Does it make sense to get a new car? My last car was a little Proton I bought new for $18,000, and traded it in 3 years later for $9000, and got a loan for the rest of my current car. I have probably held on to my car a little too long, but the trade in still seems pretty good at the moment.
Advice would be appreciated!