Is my budget ridiculous?

[k2togm1]

We've never owed a car but want to get one now to go to work and do little trips. Our amazing budget is around £500 so I think and old car that has been looked after is our only option. What would you get? What make etc?

Peugeot 106, Diesel if you can, old Micra the one that looks like a jelly mould.
I paid £700 4 years ago for my Peugeot 406 Diesel estate, its a seven seater, does 35MPG, we love it and after 200,000 miles its still going strong.
Once a car gets to 10+ years old they are still fine but no one wants them.
Before this I had a 405 estate £500 lasted 3 years then scrapped it.
Fiat Chinquicento ( they are rubbish) paid £150 fitted 4 clutch cables in 18 minths sold it for £500.
If you are handy at DIY basic repairs are easy, loads of forums for help.
You need to consider insurance, road tax and fuel first, I would budget £2-300 a year for and repairs, I was lucky as mine was just routine servicing so spent less.
The kids will always remember the holidays and days out but never the car they went in.

How far on each trip, how many miles/week? How many people do you need to transport each time? I know families of 6+ who manage with 4 seaters.

Get on eBay, there's plenty for that kind of money, you'd be surprised what you can get. Especially if your happy to have a little hatch-back.

Oh great it's looking positive! I had expected people telling me to go save some more...
Good to know that zumo, specially since that is what I've been looking into so my instincts are kind of in the right direction.
I do 90 miles a month cycling for work but will be doing more hours further away, hence the car, so I think guesstimating 30miles a week is realistic.
I'm just terrified of buying a pile of scrap and loosing all out money!

Oh and it's only the three of us, and my parents occasionally.

Japanese. Honda, daihatsu.

The mechanic I use loves my ancient honda civic-says it will go on forever.

With the £500, have you budgeted for the other costs? What are insurance quotes like for you? With zero NCB (and if you have no driving experience in the last 12 or 24 months) you could be looking at the same again (or more) on insurance. Can you afford to keep legal and in good working order (brakes, tyres especially)? If something breaks, would you look to repair it or replace it?

Bangernomics can be interesting in itself, but remember there is a large element of luck in getting a cheap car that will last and buying something that is bust within a week. Scrap metal prices are high now, so even shit cars are sold for a few hundred quid.

Wmittens yes I say £500 just for buying it, I'm setting aside 200-250 a month for the rest. Insurance shouldn't be so much as we have insurance for a friends car with no claims since we started the semi sharing arrangement two years ago (at least that's what I'm hoping). But what is bangemonies? (Sp??) good point about scrap metal!

get a diesel

they go on forever and ever and ever

k2togm1

If you're just a named driver on your friend's policy you won't have any NCB in your own name; an understanding insurance company may allow a discount, but don't count on it.

Bangernomics is the art of buying and running very cheap cars.

sausagesandwich34

Old diesels (in the current £500 range), maybe; new diesels, no.

Wow, had no idea there was an art to it, obviously there is to everything
I'll check the insurance thing more carefully, thanks! So why are new diesels no good?

Diesels are supposed to be better for high mileage drivers, petrol better for low mileage drivers like you (and me). Diesel repairs & maintenance cost more.

I could only get a good NCB with the current insurer our other car is on, but only DH had a NCB, I had nothing that mattered in my name to any other insurer.

Definitely go Japenese - Honda, Nissan (We have a 1997 Micra you could have off us for that, but you might not like the fact the roof seemed to leak when we had those weeks of torrential rain in the Autumn)

Older diesels have no or very little technology so little to go wrong.
AS with all cars if it has a cam belt have it changed unless you can see proof its been done in the past
If you are a named driver on another policy some insurers will give a discount for this, also tell them how few miles you do, our camper van is only £185 as its only on 3000miles a year, last year we only did about 2000.

I bought a petrol Peugeot 106 this summer for £500. S reg with only 53,000 miles on the clock and it's been fab. Very reliable and cheap on petrol!

£500 is a cracking budget! concentrates the mind, but also frees you up to look beyond a little, and have some fun:

Alfa Romeo 155 2.5 V6 - £400
VW Golf mk 3 GTi - £120
BMW E30 320i - £450
FIAT Uno - assorted from £50 to £350
FIAT Tipo 16v - £480
Bertone X1/9 - £200

all have joined and left my fleet over the last 4 years. Ebay is a great friend..

You said you have £500 and £200 - £250 a month set aside for the rest, so why not go new. You can have a new Skoda Citigo for £145 deposit and £145 per month for 3 years. At the end you either buy the car or just hand it back.

www.skoda.co.uk/gbr/newcars/citigo/finance-offers/Pages/default.aspx

It will not set the world on fire but is cheap to run, insure and will be under warranty for the duration of your ownership.

And before anyone asks, no I am not a skoda dealer - just helped a friend in a similar situation and it worked out well for her.

Vertex that sounds appealing except the £200-£250 a month has to cover insurance and petrol, how much is your friend spending in total a month?

She is spending approximately £40 per month on Insurance (Insurance Group is low but like you she had no NCB) and approximately and £50 per month on Fuel which covers 500 miles of motoring (averages 60mpg)

Wow, I want it, now

Def get a diesel and maybe a vw... Those things live forever... I've got a 13 year old polo and she's the love of my life and still goin strong

so why not go new. You can have a new Skoda Citigo for £145 deposit and £145 per month for 3 years.

Because you are tied in to pay £5345 for 3 years and have nothing at the end of it. Even if a £500 car lasted 12 months and then broke, you would have only spent £1500 in 3 years and have over £3500 in the bank.

Well I think Vertex has the best trouble free idea