Is it worth keeping an inherited BMW?

HELPDESK:Answers all your motoring queries

From TW: Due to a death in the family I am left with two cars: one a 07-reg BMW 520 diesel and the other my own 2009 Suzuki Swift petrol. I am single and on a decent salary with some job security. I always liked my parents’ car and am sorely tempted to hold on to it and sell the Swift. There is no outstanding finance on the BMW but I owe about €4,500 on the Suzuki. I’m averaging about 12,000kms a year. Would it be crazy for me to consider holding onto the BMW?

Let us look at the scenario for you keeping the BMW. Depending on the mileage, you may well walk away from a sale with €5,000 or so after you’ve paid off the loan (be sure to check that there is no fee for early repayment).

In terms of motor tax, the BMW falls into the old tax system as it was first registered before July 2008, so your annual fee will be €614, compared to €156 at present on the Swift. It’s a pity because based on emissions levels the 5 Series would be far more competitive than this. In terms of fuel costs, you will be surprised by how relatively efficient the BMW is. While neither car is likely to be achieving their official figures, on a very rough estimate it’s likely to work out at an extra litre per 100kms. That’s €150 a year extra on diesel, but that difference is further reduced by the price premium on the petrol you would buy for the Swift. There will be a significant hike in your insurance premium, but that’s hard to quantify without knowing more – and if you shop around there are big savings to be made (as we outline below). On the basis of these figures the BMW would seem like a real alternative.

However, it’s the hidden costs that can punish you. To maintain its used car value you will need to keep it properly serviced and if something goes wrong, the difference between parts for a Swift and those for a 5 Series are very significant. I think the more sensible approach would be to sell the 5 Series. Your low mileage and the fact you are single suggests that such a big car is not really what you need, so the added costs aren’t justified.

From L O’Neill: I recently renewed my car insurance and saved nearly €1,280 by changing company and I’m still on a comprehensive policy. I know people always tell you to shop around, but you would be doing your readers a great service to tell them to take the time to make the calls.

I couldn’t agree more. The price differences are really significant, as demonstrated by nearly every survey carried out in the last decade. The most recent one we came across was by the National Consumer Agency back in May.

Taking the example of a couple – both aged 46 and living in the West – it found differences in the order of over €200, while the savings for a 19-year-old on a full licence was as much as €1,942. We have said it a thousand times, but once more will not hurt: you’d be a fool not to shop around.

Send your queries to Motors Helpdesk, The Irish Times, Tara Street, Dublin 2, or e-mail motorshelp@irishtimes.com