A car vs money scenario... Please help me make up my mind!

[AB_IT]

Hey All

 

I'm hoping you lovely sensible folk will be able to help me make up my mind with regards to my car.

 

My car is a 2011 Honda Civic and I purchased it with around 30k miles back in 2013. It has never really ever let me down except for standard things like brakes, servicing once a year and the odd minor repair. It's now got 125k miles on it and recently 'slowly' more and more things have started to go wrong. Nothing that I couldn't fix myself so I've been fixing it to save money. Suspension things and stuff.

 

Recently I took it in for an MOT and it failed on the rear axle, it had corroded and needed full replacement. I couldn't do this job and it would have been too big of a job so I was quoted £750 all in and it needed new rear brakes so I supplied the part and they said they'd fit for an extra £50 since they where working on rear axle. I've reguarly looked after my car, I could wash it more but I'm always on time with maintenance schedules and recently did a bunch of work changing Gearbox Oil, Brake Fluid, Anti freeze etc... It runs and sounds lovely and as it owes me nothing I now don't really worry about silly things like parking it somewhere.

 

For a long while now I've been saving money and have a bit of a financial plan. My mortgage renewal will be up in 2026 and when the fixed term expires I'm going to look at what the rates are but also put about 30-40k that I've saved into the mortgage to pay off a large portion of my house leaving me with less than a 50% LTV and also take off 5 years from my mortgage. If I keep doing this in the next 10 years (I'm 30 currently) I'll be mortgage free. Then the plan is to hopefully rent the house out and move into a bigger home.

 

However realistically my car now needs a new clutch, it's old and this will cost around £1,500 with flywheel bearing etc... Then what if the alternator, water pump a bearing goes etc... It starts to cost more and more. Which I'm worried about investing another £1500 into my car for something else to go like a head gasket or something.

 

I've looked at used cars and thought I'd be able to find another used car at 6-8k, 2 years old with little to no mileage, how wrong was I! The cost of new cars is ridiculous, mine by WhatCar valuation is worth around 2k it's a knacker by this point, I was thinking I'd be lucky if I get a grand back for it. As I look for used cars around 2-4 years old with no more than 30k miles on the clock it's starting to creep up to the price of buying a brand new Dacia which my dad has had for 5 years now and hasn't had any problems with.

 

Dacia have just released the Dacia Spring which is fully electric but can go 130ish miles on a single charge, more than enough for me plus no engine for services, tax etc... Sounds good and it's £12,995 if you shop around a bit literally brand new. A Honda Civic 4 years old with 35k miles is averaging around 9k. WHAT!?

 

So my question is this, what would you guys do. I don't like spending money on cars or on anything for that matter my main goal is to pay my house off as it isn't dead money at least. I treat my finances very seriously and I'm careful. Do I invest in my current car with a new clutch, flywheel and hope that in the next 3-5 years nothing else goes wrong or do I buy a used car at inflated prices for around 9k or do I buy the Dacia new electric vehicle and hope that the electric over petrol cost including maintenance fees more than offsets the use for a petrol car.

 

Any advice/help is really appreciated as I know if I don't make a decision I will do nothing and regret it later. Thanks everyone

[Ditto]

This is a hard one. I'm not sure I can offer too much advice on the car situation, in spite of being in somewhat similar position with a car needing work that is about 20-30% of it's total value. Look hard at the EV but do the sums with fuel costs - if you can home charge, build those costs in too. Can you invest on solar panels - that could swing the numbers more favourably, but you might need to look at the 5 - 10 year picture.

 

With regards the mortgage, I took the opportunity at around your age to reduce the mortgage massively and it's been one of the best decisions I've made. There was a stage in my late 30's when I was well paid, mortgage free and kid free! It's a great feeling and certainly meant no manager could ever bully me - I could live without them! I have several friends that bought a new house (with partner) and kept the old property to rent out. Other friends that have a flat or two in London and half a dozen properties in Portsmouth rented out as student digs. All this on top of a senior job for a national telecomms company! I've heard the buy-to-let and multiple property ownership has become less and less attractive over the last decade. Whether from bizarre taxation that hits this sector, or the issues with capital gains tax, it's not what it used to be. Look very carefully and the multi-ownership investment - it might be that other forms of investment are better. I'm looking forward to other comments and your eventual decision, and I agree doing nothing will be a regret.

[mrbios]

I don't drive myself, but I do the home finances for me and my wife. We were in a similar position nearly 4 years ago, she had a Skoda Fabia 07 plate which she drove for many years till the cost of repairing became more of a burden than replacing it.

 

Personally I'm not a fan of paying large amounts of money for an asset that will only keep depreciating in value. So we now just lease a car, we got a brand new (delivered with about 60 miles on the clock) Vauxhall Corsa 21 plate, we pay £166pm, with no deposit. There was no MOT needed for the first 3 years, and it was under warranty. We have to pay to service it each year, pay for tyres and wipers. Apart from that it's just fuel.

 

We're coming to the end of our contract on it in August, one minor dent to fix before we hand it back but hopefully there's nothing else they'll be able to question or charge us for... Over 48 months we'll have paid £8k in total. If we had bought a car for £8k four years ago, it would still presumably be worth £3-5k now (pure guess work, as i say, cars aren't my area...i hate the things) and you can make it last longer but then repair costs go up over time, £8k also would have been an older vehicle that would have needed additional repairs and costs...... all in all it felt like a better investment having a brand new car that was reliable, than to have an older car with some residual value. Then rinse repeat every 4 years.

 

Doesn't make sense for everyone, but after seeing it work well for my parents, we've been really happy with it as a solution. We'll probably get an electric one in August when our renewal comes around.

[mdrabble]

I was very recently in a similar position, 2011 ford focus with 135k miles and it suddenly needed work would have cost more than it was worth.

 

Got £250 trade in as part ex as couldn’t be bothered with the hassle of trying to sell via other methods as they all seem to be same price.

 

2nd cars are really holding their money much to my shock! I though same sort of price £6-8k when it was more like £16k

 

Having looked at HP costs over 3-4 years it was working out the same or more than a new car on PCP.

 

Looked at full electric and hybrid and was really on the fence.

 

Eventually went for a Duster Expression hybrid on a 4 year PCP costing me £369

Per month with a 3 year service plan - in year 3 I can trade in and upgrade or wait until the end and have options to hand back and walk away, trade in and upgrade or purchase.

 

Correctly getting 500 miles on a full tank which has lowered by fuel bill considerably.

 

I would like to have purchased via HP but cost was way more than I could afford, so PCP was the best alternative.

[3s-gtech]

In bangernomics, there’s a sweet spot. I’ve only ever run old bangers, so I know it well.

 

Does it need-need a clutch? Can it be nursed on?

[MatthewL]

Difficult one, firstly car tax rules are changing soon I believe for cars newer than 2017 I think but don't quote me so that might factor into things.

 

Fixing it is going to be cheaper than a new car, I've had my car since 2019 it was 3 years old, had 30k on the clock and its got 103k on it now, realistically its got another year till paid off, it was a car I never wanted but my previous ECU died and after having issues for 6 months I bit the bullet as I needed it for work but I ended up with something to meet the company car criteria for work at the time, having know I was leaving I wouldn't have got that so don't get caught in that rush if it does go. The year mine went it had been pad off 6 months and was immactulate and the plan was to keep that for work and buy a toy as such.

 

If cars start costing me more than £1.5k a year including tax, mot, service, tyres, service repairs then its time to start looking as a rule.

 

I'm looking at my next one a bit of toy, keep what I've got till it does and use it as a workhorse, its an estate and I like the boot space but I don't need that everyday. They can be money pits but sometimes its worth spending a few quid on them especially as the market is these days.

[AB_IT]

Thanks all for your comments. I wasnt expecting this much help.

 

It's interesting to hear all your takes on this and I'm considering everything you're telling me so please keep the comments coming in

@3s-gtech - The clutch I think needs replacing, sometimes it can be awkward to get into first/second gear, most of the time it's okay but it's becoming more frequent and there have been times at traffic lights where I've needed to put it in first and drive but it won't go in. I have also on 2 occassions now felt some slippage when accelerating hard onto a motorway or similar. I've also found that my car especially in colder weather will slowly judder whilst it's in gear like the clutch is released, I'm in gear and it feels like the car is rocking forwards and backwards until I change to a higher gear. I'm presuming this all point at the clutch especially since as a result of this I tried changing the gearbox oil but smoother changes thinking it needed this but it hasn't made a difference.

 

I don't mind changing the clutch if I could have a mystical ball to tell me that nothing else major will go wrong on it for at least the next couple of years, however if it all comes at once then I'll be screwed as with the rear axle and clutch it'll likely be more than the car is worth. I'm comfortable doing most work but huge jobs like the clutch I don't want to do myself so labour costs are silly.

 

I don't think having a car on lease is something I want to consider, I don't like the idea of renting something, I'd rather own and have an asset that I can pay off immediately than rent or pay any kind of interest on a purchase. Thanks for your reccomendations though

[3s-gtech]

Yes, that clutch sounds like it’s at the end!

 

What you have to consider is what sort of car your sub £1000 resale value (due to the clutch!) plus the £1500 potential cost of replacement would get you. £2500 buys another old banger, but an unknown one. If that then explodes within a week, you’re even worse off.

 

Clutch + DMF has become an expensive job, but being a Mazda you may well see the full benefit of getting it done with longevity. I had them done on my old Mondeo, got another four years from it and sold it due to creeping rust underneath. That was 7 years ago, and it’s still going (and the MoT history isn’t bad) at 275,000 miles!

[Ditto]

OP car is a Honda, mine is the Mazda. However, I would think the same holds true. To be honest, I'm surprised to hear of rear axle problems due to corrosion. Even clutch changes I thought were much rarer than 20 years ago.

[3s-gtech]

OP car is a Honda, mine is the Mazda. However, I would think the same holds true. To be honest, I'm surprised to hear of rear axle problems due to corrosion. Even clutch changes I thought were much rarer than 20 years ago.

 

Indeed - same holds true for both! Great cars with some rust issues!

[dhaughton99]

Given your focus on paying off the mortgage, I'd be hesitant to sink a ton of money into the old Civic. That clutch job is a big chunk of change, and you're right, something else could easily pop up.That Dacia Spring is tempting at that price, especially with the lower running costs. I'd do some serious research on the real-world range and charging situation, but it could be a smart move if it fits your lifestyle.

[PotNoodleTech]

It's tough. Cars are a mugs game - all they do is take your money and throw it away in the bin. People would be incenced if they paid £50k towards their morgage but actually only £5000 came off the debt? But they do that with cars day in day out.

 

I know people who's car rental payments are as much as their mortages. Completely insane. £50k down the drain.

 

So - I sense that you already actually know the answer deep down, overpaying on your mortgage is one of the most financially clever things you can do so and the best investment by far avaialble nowadays. Keep doing that and screw the cars. £2000 bangers even if they only last 3 years each you've got good value out of that and a paid off house and probably early retirement all day long!!!

[Danp]

I'm all for keeping older cars going, better the devil you know! I find it's cheaper in the long run than buying newer and finding stuff still goes wrong with them and normally, costs more to fix.

[AB_IT]

Thanks everyone

 

I'm going to keep saving and investing my money whilst keeping my car on the road, replacing things and maintaining it myself where I can and hope that it lasts me another couple of years. I'll nurse the clutch until it starts to really play up and then just take each day at a time.

 

Maybe the silly thing to do here is to buy a brand new car. Especially since no one knows how the cost of cars will change in the future and what will happen to mortgage interest rates. Playing the waiting game with my car might just mean that used car prices drop to a more reasonable level later on and in the meantime I've paid off a good chunk of my mortgage with my savings

[PotNoodleTech]

Just make sure you keep * some* savings in the bank for a rainy day emergency fund ideally 3 months full running costs so like £5k to £10k should do most people.

[mrstrong]

I'm also in car quandary situation, not had much luck recently, had to scrap my 20 year old yaris

and bought a 20 year old golf with full service history (private sale £1200), within first 2 months

cost me another £300 in garage then 5 months later clutch went and sills rotten MOT fail, got £150 scrap

 

now my wife's hyundai i10 (15 years old) has failed MOT: brakes binding and front Sub-frame corroded and seriously weakened

Mechanic couldn't give me a fixed price for fitting a new sub-frame, says maybe around £1000 to get it through MOT but

could be more labour / issues with sub-frame removal.

 

Thinking I might try another garage but wary of it becoming a money pit. I can't do car repairs myself so I'm at the mercy of the

garage. Would you expect them to be able to give you a fixed price for a big / complicated job like new sub-frame ?

 

Situation slightly complicated by fact may be getting made redundant.

We could manage with one car for a while if we had to. Decisions decisions

[PotNoodleTech]

That sounds like a real run of bad luck. Front subframe not an easy job so most garages not gonna be a cheap one

[Sephiroth]

If it's drivable still, then keeping it on the road with the view to sort the clutch out is probably the best move. As much as I'm an advocate of EVs, they are not for everyone yet, and are very expensive initially. perhaps something to consider later down the line when the mortgage is clear.

 

One thing I would suggest, as you seem to be happy delving into the workings of the car, see if it's something that you really can do. Sometimes jobs sound daunting but actually aren't. My partner has a 57 plate Renault Scenic that I've been maintaining for the last few years. It's got 140k on the clock and I've done almost all of the repairs on it over the last 5 years, including replacing solenoids on the automatic transmission, and replacing a relay on the electronic parking brake board. I like the video tutorials from autodoc (they have a Youtube channel) as they show exactly how to do a huge amount of jobs. Using their tutorials, I recently replaced both front suspension arms, coilsprings, spring mounts, and track rods. Took me 2 days and about £100 in parts, whereas the quote I had from the garage was over 10x that (issues arose as an MOT failure).

[3s-gtech]

Running old cars without the space to work on them is a difficult balance. That old Golf would almost certainly been saveable with a welder and some time (that seems to be most of what I do now!) but no good on a driveway.

 

I wouldn't do that job on the i10. You start coming across things like the subframe bolts seized in, brake hardlines corroded, power steering pipes corroded, and it gets out of hand. The car isn't worth enough afterwards to justify - buying another with a year's MoT would be cheaper.

[mrstrong]

I think the i10 had all new brake pipes a couple of years ago but I do recall the mechanic saying something about removing bolts could be an issue

with replacing subframe plus if it's rusted the subframe bad enough to fail, probably other rust issues. Apparently they are not allowed to weld it.

 

For future reference would it have helped if I'd cleaned under car regularly, i.e. sprayed water with hosepipe, or got in treated/painted with some rust inhibitor ?

[3s-gtech]

Yes, washing underneath helps a lot. Salt, certain soils and mucky water all take their toll. Best is to treat the underside with a corrosion inhibitor like Dinotrol, Waxoyl, etc after washing/drying thoroughly. Adds years to its lifespan.

 

My stuff all gets Waxoyl’d when I get it, then checked and reapplied as needed. Checked under my parents’ E91 3 series a few weeks that hadn’t been done for years, and the rear subframe is rotting away soundly.

[Ditto]

I'm surprised to hear of so many rust issues. I thought they were the domain of 70's and early 80's cars, like the Datsun Cherry, early Ford Fiesta and what a good friend on mine used to refer to as a driver of one, "see through the floor of a Renault 4". I thought protective measure had largely removed the rust issue, but it appears to be making a comeback. Oh, I should add Alfa Romeo. My brother had several Alfa Sud's. Great cars, but we joked about the remains being the lively flat 4 still running amongst a pill of rust! Edited February 25, 2025 by Ditto

[3s-gtech]

Depends on the age, and the car. In terms of bangers:

 

BMW - wings (especially during the late 90s and 2000s) and subframes. See: E46, E90, E39 et al

Ford - bodyshell, wings, basically all steel bits. See: Focus, Fiesta, Puma et al

Mercedes - late 90s to 2010 or so, terrible rust issues. See: W203, W210 et al

VW/Audi - wings, sills, bootlid, subframes. See: mk4 Golf, mk5 Golf, Audi A3 8L and 8P, B5 Audi A4, et al. Some better than others.

Honda - bodyshell structure. See: 7th gen Civic et al

Mazda - bodyshell and sills. See: MX5 all generations!

Toyota - body structure, sills, wings. Improved a lot in the 2000s. See: anything pre 2000

 

Things have progressed since 2010 or so, and some older cars are much more resilient than others. For some true horror stories of corrosion on modern cars, have a look at how pick-ups fare in countries where salt is used. 10 years and they often snap in half. Even worse than Land Rover products.

[TheHyperTechie]

Currently going through a similar situation.

 

We bought a (new to us) Peugeot 2008 2016 model less than a year ago. The heating system suddenly packed up about 2 months ago, garage thought they fixed it multiple times. A new resistor, relay, blower motor and £600 later, the issue is still not fixed. They are now telling me its something to do with the on-board computer.

 

Honestly, people criticize PCP and new car schemes but the benefits. No MOT for 3 years, free services, that peace of mind... it may be a route we look down next.

[Ditto]

Depends on the age, and the car. In terms of bangers:

 

BMW - wings (especially during the late 90s and 2000s) and subframes. See: E46, E90, E39 et al

Ford - bodyshell, wings, basically all steel bits. See: Focus, Fiesta, Puma et al

Mercedes - late 90s to 2010 or so, terrible rust issues. See: W203, W210 et al

VW/Audi - wings, sills, bootlid, subframes. See: mk4 Golf, mk5 Golf, Audi A3 8L and 8P, B5 Audi A4, et al. Some better than others.

Honda - bodyshell structure. See: 7th gen Civic et al

Mazda - bodyshell and sills. See: MX5 all generations!

Toyota - body structure, sills, wings. Improved a lot in the 2000s. See: anything pre 2000

 

Things have progressed since 2010 or so, and some older cars are much more resilient than others. For some true horror stories of corrosion on modern cars, have a look at how pick-ups fare in countries where salt is used. 10 years and they often snap in half. Even worse than Land Rover products.

I wonder if differences in our age reflect our views! I thought there was a big change in the factory application of sealer to prevent rust, but several decades ago. The idea things got better post 2010 is not in my perception - but perhaps it has? There is a solution though - https://www.autoweb.com/10-best-cars-with-aluminum-frames#:~:text=Photo%20by%20Cadillac-,1)%20Jaguar%20XE,-The%20compact%20Jaguar

 

And I only presume more modern (actually not that modern) fibre materials (glass/carbon/etc.) that are strong and lightweight are still just too expensive. Such technologies have transformed racket sports - e.g. tennis from wood to M40X graphite.