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I bought a Suzuki Swift last year (brand new) and have paid off half of it. I have recently become a mom and the car is too small and pretty useless.

My question is; should I keep the car for another year or two and use my partner's wagon and then sell the Suzuki, or should I just get rid of the Suzuki now?

Everyone says a car loses most of its value in the first year.

However, should I simply cut my loss and save on the repayments?

Taniya

From the "Ask Jack" archives - 3 December 2009

An interesting question.

Your loss will depend on the initial price you paid for the car. For example, if you were able to negotiate a good discount from the initial retail asking price, then the loss will not be as bad as if you paid full retail.

Any second hand car is always going to be worth less than what somebody can negotiate to buy the exact same model for brand new.

This is where the Honda model of 'one price for all' with no discounts policy would work better for you, as the resale values and trade-in prices are higher with a car of this age.

The other factor is what to buy to replace the Swift and how much that will cost?

Will you be financially any better off in the long term?

You could have a look around and see if there are any similar cars for sale and check asking prices, or call into your Suzuki dealer and ask what the car is now worth as a straight buy or to sell on behalf.

They may even have a suitable alternative vehicle on their yard as a trade.