All good things in life must come to an end, and for me, that meant the end of the road for our family car.
The car that we’d bought for £5,000 just 3 years ago died overnight.
We bought it from a neighbour who’s a retired forensic accountant and who took great pride in the maintenance of his car. The car’s service log had been kept up to date with meticulous precision.
It was a 2008 Mercedes C200 Estate, perfect for our chaotic family and fortunately for us, it landed straight onto our laps. Right place, right time, and definitely right price.
Knowing the car was 20 years old, we knew that it had a limited shelf life so about 18 months ago we set up a sinking fund to save for a new car, thinking we had a few years to build up a credible amount to buy another car outright.
We diligently paid into a car maintenance sinking fund each month, that way we could pay for services, MOTs and any work that would need to be carried out as a result.
Unfortunately, the car died well ahead of schedule and our sinking fund wasn’t ready to buy a new car outright. We had to go to the financial drawing board. We had a few options to work through and yes we even discussed car finance because it’s important to explore all the options available to you.
Here’s what we settled on.
- Car sinking fund
Even though the car sinking fund wasn’t as full as we’d have liked, we pulled out the full amount to go towards our new car fund.
- Emergency fund
As a Financielle OG, I’ve always had an emergency fund in place. It’s saved our family a number of times for different reasons but it’s a big expense to swallow when you’re not expecting it.
If you want to build some resilience and strong financial foundations, check out this article on how to save an emergency fund here.
What should you do if your car dies?
1. Don’t panic It feels like a crisis in the moment, but it’s not the end of the world. Take a breath and remember that you have options.
2. Try not to make an impulsive decision A car dying often feels urgent. You need to get to work, the kids need dropping off, life doesn’t stop. But making a rushed financial decision under pressure can cost you far more in the long run. Give yourself permission to pause.
3. Make a plan Look at what you have available. Savings, sinking funds, emergency funds and work out what you can realistically pull together. Knowing your numbers will help you make a clear-headed decision rather than an emotional one.
4. Don’t keep up with the Joneses It can be tempting to use a car dying as an opportunity to upgrade. Resist it. Your job right now is to get from A to B, not to impress anyone on the school run. Buy what you need, not what looks good.
5. Consider thinking short term You don’t need to solve your car situation forever right now. Sometimes the smartest move is a sensible, affordable car that buys you time to keep saving so that next time, your sinking fund is ready and waiting.
And now, the fun part. The car hunt begins! If you’ve been through this yourself and have any wisdom (or warnings) about buying a used car, you know where to find us. In the meantime, I’ll be rereading our helpful guide on the best used cars in the UK here
Holly x