Polo versus Volvo

[GaryJBrown]

Hi there,

I recently bought a Volvo S60 with an R80000 and the vehicle cost R335000. It was a bit of an impulsive buy but I had just been in hospital for a year and needed something to cheer myself up. The payments on the vehicle are R5500 including insurance.

After driving the vehicle for awhile I have come to realize that I am not a big fancy car type of person (haven't used any gadgets on the vehicle) and on top of this I drive 3200km a month to work and back so I am concerned about the operating cost of the vehicle over 5 years.

So I decided to take a look at the Polo 1.2 TDi Bluemotion. Below are the comparisons. Not extremely 'accounting like' but a comparison non-the-less.

5 year costs (Rand) Volvo S60 Polo
Cost of financing 415000 227000 (including deposits)
Service and maintenance 80000 55408
Fuel 126720 84480
Tyres 24000 8000
Insurance 45087.6 23700
Total 690807.6 398588
Savings 292219.6

So my question is should I go for the Polo? I put an R80000 deposit down and will lose R30000 in the settlement if I go for the Polo. The payments will drop from R5500 to R2800. This will allow me to put extra money into my bond or save and put it into my fund portfolio.

Should I absorb the loss for additional disposable income and savings in the future on operating costs or should I keep the car? Any opinions?

Thanks for the advice much appreciated.

[GaryJBrown]

Current salary R32000

[bjl584]

The Polo is a VW correct? And I believe it has a diesel engine. (They don't sell that car here in the US.) But, VW makes very reliable cars and the TDI is an excellent engine. The savings that you put up make it a no brainer. The only issue is getting out of your current car. Are you upside down on the loan? Can you trade it in on the Polo and at least break even on the deal? If not, do you have the money to make up the difference?

[GaryJBrown]

Yeah it's a VW. I put a deposit down of R80000 so when I settle the car I will loose R30000.

[greenskeeper]

I'd by the polo but I'm partial to TDI's myself (got a 98 Jetta or "VENTO" as you would call it)

[kellogg9]

I wish people would buy electric cars instead of combustibles We need to ween ourselvesoff oil

[bjl584]

I wish people would buy electric cars instead of combustibles We need to ween ourselvesoff oil

Why?

You know that most of the electricity that is used in electric cars is generated by burning coal right?

Did you also know that the batteries that are currently in most electric cars are so toxic that it is against the law to make them in America? The auto makers outsource the work to countries with less environmental laws. And disposal of those batteries once they go bad is like getting rid of spent nuclear fuel.

As they currently stand, electric cars are window dressing. They make people feel good and give them something to brag about, but in reality they aren't really any more environmentally friendly than a regular car.