Car Choice: The laws of Bangernomics mean the Boxster has to go

Dave Johnson has been hit by the credit crunch. His wife has a new job with a short commute to a multi-storey, and her Boxster S is to be replaced with a supermini. They are looking for a finance deal on a new car, or something a year old, using a £6,000 loan. They also want to know the best way to off-load the Porsche.

A car for the head

One reason why we are in this financial mess is that we over-borrowed. Personally, I don't think you need a brand new car to drive two miles to work. Some might suggest taking a bus, for me a secondhand hatch would do the job. For £1,000 it is possible to buy a Vauxhall Corsa that won't be as nice to drive as a Porsche but will be cheap to run and insure and, when it is in the car park, who cares if someone dents the door? The time for Bangernomics has certainly come and the simple fact is that paying out for a personal contract purchase (PCP) scheme, which usually lasts for three years, may be convenient, but it will cost more than buying a car outright in the long run. If Dave does not want to own a car then it can be a stress-free way of running a car, but only Dave knows what he can afford to pay each month. I did find a four-year deal on a new Corsa that cost £139 a month for a 1.0 Active. The choice is theirs.

A car for the heart

Well, Dave and his wife are getting rid of their car for the heart, the Porsche. At the moment, a dealer may be one of the few people who would make an offer. First though Dave should take a look at how many are for sale online and what the prices are. Can he afford to undercut them? A dealer would hope to have a margin of at least £2,000 when reselling. Dave could use the dealer's offer as a guide and then stick £1,000 on it and hope theirs is the best-value Boxster in the classifieds. If they get a decent return what small car could they buy? Following Bangernomic principles it should be a very used Ford Ka. It is slow, but still lots of fun to drive and, for say £2,999, Dave can get a very tidy 2004 example from a dealer with a year's warranty which should be very reassuring. It will easily last for another four years until the economy picks up.

Looking to buy?

Please write to Car Choice, Features, Independent House, 191 Marsh Wall, London E14 9RS, or email James Ruppert at carchoice@independent.co.uk, giving your age, address and phone number, details of the type of vehicle in which you are interested and your budget.