Maintain an old car or buy a new one?

I currently run a 2001 Volkswagen Golf 1.4 for personal and business use. I've calculated that in the past 12 months I've covered 12,000 miles but my expenses for running the car inc. petrol, tax, servicing and repairs have come to £3,500(excluding insurance). The car continues to be troublesome, having sensors replaced and traction control causing problems. Would it be more economical to buy a nearly new car on hire purchase or keep the Golf? I've looked into buying a 3-4 yr old Skoda Octavia estate or a similar sized estate car as this would be more suitable for my business.
This model is trouble. See:

Definitely move on. Sell to someone who worships the VW brand and switch to a Hyundai or a KIA.

Answered by Honest John on

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