I am a 39-year-old male, in a relationship but we live apart & our own finances are kept separately. We have no intention of moving in together as of yet so basically, I am living as a single man where finances are concerned. I have a 11-year-old son who stays with me 1 night per week which may increase as he gets older. I work full time & commute 40 miles per day so a car I would say is necessary especially as I take my son to school on a morning & I also have him at mine for a few hours per week after work. I earn 33k & I have generally have at the moment £400 spare cash per month but this all depends on what outgoings I have. Some months maybe less due to birthdays, Christmas, car tax, car MOT etc. I purchased a car on a 2007 plate 4 years ago for 5k which I used a loan for. This month my loan is paid off so initially I will be an extra £225 better off per month. This is what is making my undecided as to what to do. The car needs some repairs doing such as the clutch, cam belt which will cost me around £850 & I have decided to get the work done.

I live in a rented 1 bed apartment which is getting too small for me now especially as my son is getting older & he sleeps in my bed when he stays for 1 night. This hasn't caused much of a problem, but It defiantly will in the near future. Also, my dad might have to stay with me at the end of the year when he moves back to England. I am hoping its not for too long, but it is a possibility & he would have to sleep on the sofa if it happens. My rent is £525 per month & I could probably find a bigger 2 bed house for around £650 a month. I have no furnishings so it possible that if I did move into an unfurnished house I would have the bond, sofa, beds, appliances etc to pay for. I did really want to buy my own house just, so I could basically make it mine & decorate it as I wanted without the threat of been told I have to move out like the situation could happen in a rented property. My current apartment feels like I'm in a hotel, it just doesn't feel like my place. I have 2 inspections each year which makes it feel worse. I tried getting an house through my local council but I have been waiting 5 years now plus they will only give me a 2 bed flat which would probably be a high rise flat in a not so nice area. So, I would like some onions on what people think my best options are? I have listed some possible options below which I have been considering so any advice / comments would be greatly appreciated.

Option 1

Stay where I am & take out a loan for another car which would be £225 a month that would leave me approx. £400 a month to save towards a mortgage or to move to a bigger rented house

Option 2

Repair the car to a good standard at a cost of around £850 using £700 I have saved already. This would leave me with approx. £625 to save each month & run the car until it is not cost effective to repair.

Option 3

As option 2 but use some of the money to move to a bigger rented house i.e use the extra £225 from paying off the loan to use for a bigger rent charge & running costs of a bigger house. I would not be able to get a loan in the future though if my car did ever fail completely.

Option 4

As option 2 but use the £625 to save for a deposit for a mortgage & if my car did completely fail I could still afford to take out a loan to buy another one.

Option 5

As option 1 but save towards the deposit for a new car on Lease & take out a lease for around £250 a month