We've had 3 cars in the last five years, all have cost about £1000 and have been pretty old. We've always saved up for them and then paid outright.
However, they've variously broken down and had to have bits replaced and it's cost us a fair bit to keep them roadworthy. DP is suggesting a new car - something small for about £6,000 on the basis that it'll run better and not need to be replaced any time soon - but we will have to pay the dealer on a monthly basis and it's going to be over £100 per month, maybe more.
We are having real trouble making a decision, especially as we're just about to move to a cheaper rented property to increase our savings (trying to get together a deposit for a mortgage at some point). What do you think we should do?
Also, what car would you recommend for a family of four? - my only considerations are that it's safe, cheap to run and won't break down in the near future.