Should I sell my car?

Scotstots · 2023-07-26T14:26:06+00:00

I have a car that's very cheap to run, small engine, low insurance etc. I would get about 5k for it if I sold. I have 6k of debt of my credit card, interest free, which is feeling quite oppressive at the moment, and so for the first time I am considering selling my car to pay off (most of) cc bill. I'd save 350 ish a month just on the cc bill. But...we are a 2 car family and make good use of the two cars at the moment. Kids would need to do more walking to and from school (it's 1. 2 miles each way) and they're 10, 8 and 6, and we'd probably need to take taxis for a few things. I don't really need a car for work as I am 80% wfh but it is certainly much easier to have two cars. I know no one can answer this for me, but just wondering about the opinions of others. thanks.

Augustus40 · 26/07/2023 15:50

It is better for the environment op. To need occasional taxis is fine. You would be supporting a local business.

I sold mine in April and haven't missed it once! My ds is 18 and I work from home and our buses are ace here as are trains.

bagforlifeamnesty · 26/07/2023 15:53

You’d save loads on running costs even if you got a taxi every week as you wouldn’t have to pay insurance, tax, etc. I’d do it. The debt won’t be interest free forever.

bagforlifeamnesty · 26/07/2023 15:54

Also does you work offer a cycle to work scheme, if so I’d look at using that to get an ebike

Original poster

Scotstots · 26/07/2023 16:19

thanks for your responses everyone

OP posts:

Callisto1 · 26/07/2023 18:35

If the walk to school is ok, kids that old can easily walk it. They might moan though! My 3 now 4 year old has been doing that distance to pre-school for a year and is slowly getting better with it. We occasionally take a couple of stops on the bus or use the scooter. It's hilly where we live so the way back is a bit a painful!

Original poster

Scotstots · 26/07/2023 20:25

Yes the kids will definitely moan! It's along quite busy road too so not the nicest walk. My work is too far for an e-bike to be feasible sadly.

OP posts:

25sheets · 26/07/2023 21:46

A car costs hundreds of pounds a month to run, insure, maintain etc etc. It sounds like it's a luxury rather than a must have. The walk to school will be good for the children or they can get little scooters. Sell the car.

BarbaraofSeville · 27/07/2023 06:54

If your car genuinely is cheap to run, it might not save that much, taxis and bus fares add up quickly, then there's the inconvenience of the extra time taken and unreliability of public transport, taxis not being available when you need it etc.

But I need to ask, why is your CC payment so high if it's interest free? I use credit card offers to profit from the interest and the payment is usually 1-2% so on a £6k debt, the minimum payment should be £120 pm at most.

If I were you, before selling your car, I'd check that you're not paying more than you need and if so, adjust what you're paying so you're paying a little more than the current minimum payment, eg if the minimum payment is £120, set up a standing order for £125 and leave it at that - this removes the minimum payment marker from your account, which is good for your credit history.

Or if the minimum payment is £350 I'd look to transfer to a better offer with a lower minimum payment. There's usually one available with no or minimal fee - I've kept £10-20k debt on various cards running for over a decade by just applying for a new offer when the old one runs out and never paid more than 1% in fees and it's usually been fee free. I do it because I make a few hundred pounds a year by offsetting the debt with savings but it's also the best way to get out of debt cheaply. Have a look at:

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

Callisto1 · 27/07/2023 09:29

Maybe before you sell the car you could have a few weeks where you don't use it to test how it goes? Probably best when school is back. Also we often don't take the most efficient route to school (It's along a busy road) but one that takes 5 min more. Maybe you can find something like that?

CalmDownBoris72 · 27/07/2023 09:37

How often will you have kids activity clashes? We did consider this but 3 of mine play sports and as they’ve grown (13, 11, 7) the fixtures mean we’ve had many occasions where all 3 are in different locations.

If this wouldn’t be an issue for you then I’d pay off the the CC, that will be a major relief and reduce your outgoings a lot each month.

BanditsOnTheHorizon · 27/07/2023 09:40

What's it going to be like in the winter? All well and good walking in this summer, I've done a few winters walking the kids to and from school, push hiking to the shops etc and it's lovely in the summer, bloody awful in the winter.

As a op said, why don't you mothball the car for a few months and see how you get on before making the decision

Twiglets1 · 27/07/2023 09:46

For as long as the credit card is interest free, I would keep the car. It would be so difficult walking children to school in the winter possibly raining etc along a busy road. And you would have to do the return trip twice a day.

Unless your partner could take the children to school on their way to work so they only have to do the journey once coming home, I would keep the car.

Notanotherone5 · 27/07/2023 09:49

Absolutely sell the car. Think about all the running costs you will save - insurance / tax / MOT / petrol / repairs. You will definitely save money overall, even with the occasional taxi. Kids will soon get used to walking to school and will be fitter for it

BarbaraofSeville · 27/07/2023 09:54

But how do you know that @Notanotherone5

I would only save money by not having a car by not doing most of the things that make life worth living, which I won't have time for anyway because all my time will be taken up getting to and from work on public transport.

Peony654 · 27/07/2023 09:59

Definitely sell, can you look into Zipcar or similar? We’ve only ever had one car. You will get used to it, and it will inevitably make you healthier as a family from more walking or cycling. You just have to be organised and make sure the car is seen as a family car, not your DP car. I walked further than that to school every day!

Notanotherone5 · 27/07/2023 10:07

BarbaraofSeville · 27/07/2023 09:54

But how do you know that @Notanotherone5

I would only save money by not having a car by not doing most of the things that make life worth living, which I won't have time for anyway because all my time will be taken up getting to and from work on public transport.

Did you read the OP? She gave details of what it would mean for her specifically

Callisto1 · 27/07/2023 10:07

I think it really depends on where OP lives on how "easy" the transition will be. Like zipcar, Uber and stuff like that only works in cities. If you're rural I think that often 2 cars are the only way you'll get anywhere. So that's why I suggested a trial run.

And walking in winter isn't that miserable. It mainly depends on your attitude and waterproofs (I live in Scotland 😄). Though I admit some days I wish for a magic carpet (a.k.a car!)

Fooksticks · 27/07/2023 13:17

We have only ever had 1 car and are so used to checking the calendar before booking things that need the car, making sure school drop-off/ collections are covered etc.

It might take you a while to get used to it but you could. Can your dh catch pt to work and you have the car for the DC?

Having said that, we've just bought a second car and I'm actually a bit bummed about it, but know we really do need it now. Having one car was cheap.

Original poster

Scotstots · 27/07/2023 13:32

BarbaraofSeville · 27/07/2023 06:54

If your car genuinely is cheap to run, it might not save that much, taxis and bus fares add up quickly, then there's the inconvenience of the extra time taken and unreliability of public transport, taxis not being available when you need it etc.

But I need to ask, why is your CC payment so high if it's interest free? I use credit card offers to profit from the interest and the payment is usually 1-2% so on a £6k debt, the minimum payment should be £120 pm at most.

If I were you, before selling your car, I'd check that you're not paying more than you need and if so, adjust what you're paying so you're paying a little more than the current minimum payment, eg if the minimum payment is £120, set up a standing order for £125 and leave it at that - this removes the minimum payment marker from your account, which is good for your credit history.

Or if the minimum payment is £350 I'd look to transfer to a better offer with a lower minimum payment. There's usually one available with no or minimal fee - I've kept £10-20k debt on various cards running for over a decade by just applying for a new offer when the old one runs out and never paid more than 1% in fees and it's usually been fee free. I do it because I make a few hundred pounds a year by offsetting the debt with savings but it's also the best way to get out of debt cheaply. Have a look at:

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

thanks for this - I am paying off 350 a month to ensure I pay it all off before the interest free period ends. So not minimum payment, but will ensure that I pay it all off

OP posts:

Original poster

Scotstots · 27/07/2023 13:38

Thanks to everyone who took the time to respond. Mixed reviews (which echoes what is going on in my head!) - not a straightforward decision but will try going ithout car for a little while to see how that goes. And for previous posters, car is cheap to run, 280 a year insurance, £20 tax, always passes mot, use little petrol, but of course every little helps.

OP posts:

DragonDoor · 27/07/2023 13:48

Is your car used mostly for taking the children to school and activities ?

When the schools go back, do a trial month to see if one car does meet your family’s needs before you decide to give it up.

A 30 minute walk to school is a 1hr round trip for a parent. Twice a day.

Will your dh take them, or would the responsibility lie with you?

Pammela · 27/07/2023 17:54

I wouldn’t sell the car. Especially as you have Interest free. If all the kids were older and more independent, then yea. But we are a 2 car family and we do find clashing activities/change in work schedule etc a pain if we only have one (one car is in the garage atm.)

MikeRafone · 25/11/2023 15:25

Its not just the financial aspect of the car but your health, it's found active travel to school/work on a daily basis improves overall health.

get scooters and bikes for the children to get to school.

If by selling your second car you save £350 a month on th cc you'll also save £40? a month on fuel, £29 a month on basic running costs - so £70 a month. would you really spend £840 a year on taxis? I bet you'd juggle the other car more to make better use of it

Spacecowboys · 25/11/2023 15:33

Think it depends on individual circumstances, only you know if being a one car household would work for your family. We definitely couldn’t do it and actually have three cars now ( eldest ds). Public transport is rubbish ( rural) , we all start and finish work at different times , I work shifts etc. For some families , one car can work.