Did you get the MOT done?
If the car is on the road and costing you money to insure and drive, but you have no income, then maybe sell it.
But if the car is off the road and not costing you anything in insurance or petrol, I would suggest you keep it.
1) while you are out of work, you can use the free time productively to sort out the no-cost issues (like stereo wiring)
2) you probably won't make back your money and if you sell it you'll have to spend more to buy another car later on
3) you'll want a car once you're working again and you might as well keep this one.
I went through the same dilemma with my first Mk2. I bought it when I had a job, ran it for a year or so, then ended up on job seekers allowance, but I kept it because a) I would need it for going for interviews b) if I sold it, I wouldn't be able to afford another for sometime and c) it gave me independance.
(but I managed this because I was living at home and my parents helped cover my insurance for the 4-5 months I was out of work).
Stick with it. If you have no money for the car, keep it off road and fix the things that don't cost money. Take the seats and carpets out, borrow a wet-vac from someone or just scrub the thing clean. While the carpet is out, pull out all the stereo wiring, including the amp and sub and start that from scratch (I would start by getting the stereo working without the sub first, just get it doing the right thing with the dash/door speakers, then wire in the rears, then add the sub).
A Mk2 is worth keeping (trust me, I wish I still had mine). Keep it up.
