Pay off or buy cheaper

V

VBN

Member
Joined
Mar 24, 2017
Messages
11
Reaction score
0
Good evening all. As the title suggests I am faced with a dilemma. I have a 2011 vw polo 1.4. Currently at 130 000kms. I purchased it in 2014 at 66 000kms. Still in good condition, I do services and any maintenance out of pocket. It is financed by Wesbank, 72 month term, can't remember the interest rate of the top of my head. I've been paying R200 extra every month and a few times a year throw in an extra couple grand. But now finances are looking a little tight, and I'm considering either a) trading it in, settlement is R73000, possibly sell for R105000 add from my savings and buy something cheaper cash. Or b) take from my savings to pay it off and use the extra money I'm no longer paying towards the car, to recoup my savings and ease my financial situation. Any thoughts? Sorry for the long post
 
I'd suggest keeping it - if it is proving reliable and you think you can get some good years out of it.

The trading a used car for a cheaper used car thing rarely ends well. What if you get a fkin lemon & end up paying maintenance etc.
 
Downgrading from a Polo 1.4 what are you realistically considering?

If I were in your shoes I'll keep the Polo, simply because it's a relatively reliable car with low running cost. I can't seem to see how you will save more money in the long run by selling a Polo for something cheaper.
 
The polo vivo is one of the cheapest cars to service. Keep it.
 
milan188 said:
The polo vivo is one of the cheapest cars to service. Keep it.
Click to expand...

He didn't say it was the Vivo. Seeing as it's a 2011 model and he thinks he can get R100 000 for it, I'm willing to bet it's a regular Polo.

VBN, I'm in a similar position with my car and I decided I'm gonna hold onto it. There is no way I can buy a car with a similar spec/age/mileage as mine that I trust implicitly because I know the owner so well, lol.
 
Buying 2hnd is always a gamble, better to stick with a known car. Also you may not even come out in much of a better situation if you sell and buy another car, you need min R90k for a reasonably late model vehicle with lowish mileage and it's a gamble.
 
Thanks for the replies. It's a regular polo 6 not vivo. Some food for thought for me. Better the devil you know, than the devil you don't. I think I'll just look at paying it off asap
 
If you use the R100k from the sale and add more from your savings then you aren't buying something cheaper. You are giving more money away on a car. Keep it, or really get something cheaper, below the R70k value so that you get some profit.
 
VBN said:
Thanks for the replies. It's a regular polo 6 not vivo. Some food for thought for me. Better the devil you know, than the devil you don't. I think I'll just look at paying it off asap
Click to expand...
Good plan. The sooner you pay it off the less interest you pay. Which makes a huge difference at the end. Could possibly save you over R10 000
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X