Early MK3. Has been pretty good for last 70K although I know the pulley tensioner will need changing soon (if only to get rid of the rattle),

£800 is about what it's worth at that age/mileage in good working condition so it's not worth spending £800 on - you might as well get a refund on any VED and then scrap it at say £100/tonne - saves the cost of the MoT as well.

Yeah and then buy what? Another old car? Buying cars in this price bracket is always a 50/50 gamble, you'll either get a gem or a dog unless you really know what you're looking for. Everyone associates Honda with reliability but theres no guarantee a 10 year old one will be, you dont know whats been done to it over that 10 years do you? You can get five identical 10 year old cars side by side but they won't be the same.

I think people would still be surprised how many good cars are out there for a low price, you can get a very decent car for under £1500 these days if you're not overly fussed about fuel economy so yes its worth looking around, but its not an easy either-or scenario.

There's a lot to be said for "better the devil you know". I think it boils down to whether you like the car or not.

The monetary value of an oldish car is based on the assumption that there's a fair chance that something will go wrong with it.

But if you know you've got a new clutch (timing belt too if the engine has to come out with the gearbox) then you've got the basis of a few more years' decent motoring.

I'm surprised the box has gone-they're usually fairly robust.

Are you confident it's likely to get through the MOT in a couple of weeks without significant outlay? If you are unsure, then paying £800 + timing belt (as suggested by Unthrottled) for the gearbox/clutch beforehand only then to find it's needs another outlay questions whether it's worth it.

I have decided to go with unthrottled's idea and put it through an MOT. Depending on how that turns out I will have to make a decision. Not sure why everyone keeps mentioning a timing belt, I through the MK3 2.0 petrol had a timing chain which should not need replacing?