Quite right - like with the thread on "Repair or Scrap – how to decide ?" (page 2 of Motoring Discussion threads), its often far better and cheaper to spend money on maintaining a reliable car you know (especially if they are just consumable/general wear and tear items and not major [read expensive/terminal] structural or other serious corrosion-related items) than to sell it and buy a completely different car which will likely by far from new as well.

Even with a FSH you won't really know its entire history outside of servicing - driven for lots of short journeys, or seldom used but for long trips, thrashed, kept in a poorly ventilated garage (potential rust problems), etc.

I agree with gb, and would say that you can save a bit more up for a newer car after, say, another 2-5 years (depending on your annual mileage - maybe more) when your current car is uneconomic to run or starts to fall to bits.

Buy a well looked after Honda civic with full service history, very few common faults.

Edited by Oli rag on 12/04/2016 at 18:14

From Moyrah's OP

'' My milage varies and its very rural and hilly at times.''

With presumably not the best road surfaces either, which is another plus for Xsara Picasso, you'll struggle to find a more supple ride and generally more comfy vehicle that what you already have within budget, plus a turbo Diesel like yours i have no doubt romps up and down those hills with ease, that might not be the case with the others without working them hard with resulting fuel penalties.

Having recently been through almost exactly the same scenario with SWMBO's car, I, overall, also vote to keep your existing car for a while yet.

One can get lucky, and happen upon a car in the £2k price region which is fantastic and will give years of reliable service, but you will likely expend a lot of time finding such a car.

The exercise really did, in the end, demonstrate just how valuable provenance is: At least YOU have a good idea about which bits on your current car are a bit dodgy and which bits otherwise are in fine health.

Another factor that occurs to me is how much your fuel bill might go up when using a 1.6 petrol on local-ish journeys compared to your diesel Picasso.
And the Mazda 2's 1.4 diesel is the same engine as in the same-era Fiesta, is it not?, which I believe is almost certain to need a new set of injectors fitting at some point; a job which can be quoted at £1000.