AIBU to get a loan for a new car in these financial circumstances?

[coffeerevelsrule]

I have a 10 year old car (Nissan Note) which I got 5 years ago using a personal loan, which was a very affordable £96 per month and which I have just finished paying off. My plan was to hopefully keep this car until both dc have finished uni, so another 4 years from now.

However, the air-conditioning is broken and needs a new compressor and I have been quoted £650 for it. Generally it is a good car and I think 3 out of the 2 MOTs I've had it's passed but then in those years something will come up during the year at a cost of around £300-£400. Or it'll fail the MOT and the cost will be similar. I drive around 10-15k miles per year for context - no idea if this is good in terms of wear and tear. The oil light came on a couple of months ago and they said to 'watch it' as they can't see where it has leaked from and nearly all the oil had gone, so that could be another potential cost coming up if that recurs. It's quite economical with petrol and has road tax of only £20-30 so that's also a consideration but I'm just wondering if I should cut my losses as it's only going to cost more as time goes by.

I think I am also being swayed by the hire car I had on holiday, which did have some nice features, not that I would be able to afford that but I have had a quick look on Available Car and it seems I could get a 'better' car for a bit more than I paid last time, which would be affordable if I got a similar loan. I also think I'm a bit swayed by having easily the 'worst'\smallest/somewhat worn car in the carpark at work but I know that's stupid!

I have the obligatory 6 months' expenses in savings but no more. I am supposed to pay ex £10k in 4 years as the final part of divorce settlement and I do owe £3k on a 0% card due to a few unexpected issues last year, but that should be paid off by Christmas. Salary is 70k and mortgage £700 with no other debts and I usually have around £900 at the end of the month, which was going towards our holiday but now will go to the credit card.

Would you upgrade or make do in my position?

If you are dependent on having a car at your disposal I’d probably get a replacement but be careful not to get carried away and spend any more that necessary.

If you can manage temporarily without a car then maybe keep going for a bit longer- air conditioning is nice to have but not essential especially as summer is ending and use the time to clear your existing debts.

Do you have a method of paying your ex and replacing the car in 4 years? Not relevant, I’m just interested 😬

I have a 2009 peugeot 207 sw that drinks oil like it's going out of fashion, and the air aircon hasn't worked for 5 years.. Apart from that it costs me very little and passes the mot every year! Weigh up your costs carefully - I don't care that my car is old as long as it works but you do you..🤷‍♀️

I’ve just had my air con fixed after at least 6 years without it. I’d be inclined to wait till next year to fix it as you won’t need it during the winter. I’d try and clear your debts and get some money saved first. If the car goes pop in the meantime and you have to take a loan you’re no worse off but if the car keeps going then you’ve bought yourself some time to get a bit more financially stable.
Mine is 24 years old with 261,000 on the clock and have to admit I don’t give 2 hoots that’s it’s the shittiest heap in the carpark! The top coat is peeling off, it’s sounds like a knackered tractor and leaks like a sieve but I still love it!! I was rather offended on its behalf when I came back from shopping and someone had placed a scrap metal card under my windscreen wiper!!

Definitely can't be without a car for work so that is another consideration as if it did become unreliable I would have to replace. I know aircon isn't essential but going up and down the motorway for an hour each day I do think I am earning a decent wage - why have I got to sweat it out or have the windows open, blowing my hair to fuck and meaning I can't even listen to the radio?

No plan for paying ex - he has paid next to no CMS since we split 12 years ago and I resent so much needing to pay him. 'Plan' is refuse to test him out, then offer a payment plan then if all else fails I would have to take it from my savings, which would piss me right off.

Having 6 months expenses in savings is pretty good, your mortgage is low and you have a good surplus every month.

I’d be inclined to up payments on the credit card to get that gone and then buy a more reliable car. No it doesn’t matter if your car is the oldest in the car park, but it’s nice to have a reliable car when you’ve got a commute, and you can afford to spend it. I think there’s a point when repairs start to creep in where you’re better having a newer car with more predictable costs. Not least because you’ll get a trade in value for your current car rather than selling it for scrap when the engine fails.