Yet another car question

My employers, in their infinite wisdom, have decided that they are
going to phase out company cars, and replace them with a car
allowance. So, I have to decide what to do.

The car allowance is worth around 4.8k quid a year. On top of that,
I'm taxed about 3k on my current Saab. Doing the sums (allowance
after tax, plus the current taxable benefit) gives a figure of around
400 quid a month. Setting aside something for insurance & servicing,
I'm looking at 300~350 per month to use for a car purchase (having
just moved house, I've got no capital available for this, so it's
going to have to be some form of finance).

Requirements: Any car I get must be up to long motorway pounding,
swallow loads of gear (essentially dictating a hatchback or small
estate), be reliable and not require much time or attention from me.
It would also be nice if it is fun to drive - reasonable power and
decent enough handling.

There are several options:

1. Buy my current car.
I've been offered my current car (Saab 9-3t SE) for 7k. It's just
coming up to 3 years old and got 35k miles on it, and is generally in
good nick. This seems like a good-ish price according to the online
price guides. And I do really like it. On the plus side, I've had it
since new, and know its history. On the down side, *I've* had it
since new, and know its history. It also just so happens that 7k over
two years costs about £350 per month.

2. Buy something 'sporting'
I've always wanted a Scooby-do. Just the cooking WRX would do me ok -
200 and something bhp. There was a new version in 2000, and a brief
look shows these as sort of affordable now, tho the finance would
probably have to be 3+ years Problem is, I'd have to get the 'wagon'
version, and they're much rarer.

3. Buy something brand new
What can you get on PCP, contract lease, and other finance plans of
the devil? Any recommendations?

4. Stop being so silly
Just buy a middle-aged Eurobox (e.g. Mondeo 2.0) and spend the money
saved on motorbikes.

5. Something else completely
What haven't I thought of?

I throw myself at your mercy.

 

Are you sure you have that right?
Assuming 40% tax you will end up with £240 P/M allowance plus the £250 P/M
that you were paying in tax , so just shy of £500 a month.

Skoda Octavia VRS.
The old shape octy based on the Golf mk4 can be had new for about 13.5k
which would be well within your budget on one of the final payment finance
deals , or under £400 per month for the whole thing over 4 years.
It has a huge boot , is very comfy for long journeys , and is pretty brisk
by car standards (noticably more so when remapped).
They also don't go wrong a great deal.
--
Alex

YZF 600

"I laugh in the face of danger"

"Then I hide until it goes away"

www.upce.org.uk
www.drzoidberg.co.uk

 

It was somewhere around Barstow, on the edge of the desert, when the

Get a Blandomobile, as above, and spend the rest on something
interesting, like motorcycles, as you suggest; but may I offer -
cocaine, whores, classic cars. You could get a very nice old bus for
occasional use - say a Scimitar that's had lots of money spent on it for
just a couple of grand. It'd still be a business car.

--

Dave

GS 850 x2 / SE 6a
SbS#6 DIAABTCOD#16 APOSTLE#6 FUB#3
FUB KotL OSOS#12? UKRMMA#19 COSOC#10

 

Thanks very much for your time, but I've already got 3 motorcycles,
all of which can be classed as at least fairly silly.

 

I knew I'd get this wrong (and now I've looked at my working, I think
my original post was wrong, but still different from you). My sums
are:
- £4.8k on my salary, taxed at 40%, gives me is £2880pa.
- 3k taxable benefit on current car means I pay £1200pa in tax.
- Total increase in net salary is £4080, which equals £340 pm.

What am I doing wrong?

 

It's *very* brisk for a car, and handles like it's on rails - excellent fun.

 

Champ

I left a company car scheme and went PCP a few years ago and found it worked
out pretty well.
Have your company got an age limit on the cars? Ours is set at 5 years
presumeably to stop the SOC merchants not being available for work due to
said SOC self destructing, going on fire etc. Will your car be worth
anything 5 years old?
Does your current car need anything? tyres, zosts etc. Tyres,tax and
insurance add up quickly when you are paying and always need renewed /sorted
simultaneously.
Other things to consider with your current car against new Road tax,
breakdown cover and sometimes insurance can be tied into a new car deal and
business insurance is dearer, if you are insuring anyone else and they have
points on their licence you get shafted for them as well!!
Does your curent motor need anything? tyres, zosts etc. Tyres Tax and
insurance add up quickly when you are paying and sods law will state they
need renewed /sorted simultaneously.
My company restricts certain cars, sports cars, 2 door stuff and off
roaders, GTi's etc are acceptable any limits there?. Some people went for 0%
forecourt deals and took what they got (Euroboxes etc) all with 3 year
warranty and pocketed the rest, one guy managed to work 2 cars at 0% and
give one to his good lady as a pressie!
My PCP needed a downpayment and a final settlement (due next fecking month)
if Sir is stretched I would stick with 0% deals.
You should do pretty well with the IR fuel allowance as you will get 40p per
mile for the 10K miles a year you do, so add that into your calculations,
this where oil burners LPG machines come in handy.

HTH

R
--

 

I've been a passenger in a remapped one and it did indeed go like stink.
I have the more sensible TDI version which is still a very nice car.
--
Alex

YZF 600

"I laugh in the face of danger"

"Then I hide until it goes away"

www.upce.org.uk
www.drzoidberg.co.uk

 

Well the £2880 is correct figure for your allowance , and your 3k taxable
benefit looks about right as well , so your £340 p/m seems right.
That's quite a stingy allowance if they expect you to run a car equivalent
to your saab.

I get a £7k per year allowance instead of (I think) an £18k company car.

--
Alex

YZF 600

"I laugh in the face of danger"

"Then I hide until it goes away"

www.upce.org.uk
www.drzoidberg.co.uk

 

Quite a few impreza owners have defected to get essentially the same
performance with much lower running costs and a more spacious car.

They do well on top gear's surveys and I've been pretty happy with the one's
I've used.

--
Alex

YZF 600

"I laugh in the face of danger"

"Then I hide until it goes away"

www.upce.org.uk
www.drzoidberg.co.uk

 

First thing, and do this *right now* is to get them to write you a
letter stating your insurance history, then shop around and find
insurers that recognise it and get some quotes on a range of things.

You might find getting business insurance coverage a bit interesting
without NCB.

4.8K is actually quite good. I'm toying with doing the same thing next
year, again for tax reasons, only I get about 2/3 of your allowance.
Everyone at my place who wants a decent car has opted out or
contributes.. and I don't like the idea of giving my own money to PHH..

In your position I'd buy a run of the mill 3 year old TDI estate and run
it for 2 years, squirelling away a bit of a contingency fund, chop it in
on the sporty toy your really want a few year from now.

Also, remember to start keeping a log of your mileages - your employer
will pay you a nominal figure for petrol (mine pays 12.9p/mile) but the
taxman says you're entitled to 40p/mile for running your own car, so
claim the difference back against your tax code each year.

HTH

 

Not budgeting for servicing & wear and tear
(you really need to split some of that fund out)

Not budgeting for businesss insurance.

Not allowing for claiming back the difference between your fuel expenses
and the IR mileage allowance.

 

You *might* consider a Forester. Essentially the same engine (lower
state of tune, mind!), permanent (I think) 4WD, bloody good performance
specs (0-60 in 8 seconds, IIRC), and as it's an estate, rather a lot of
space inside.

I considered one before I bought the Silver Tuddy, but it was out of my
budget. Within yours, though, I think.

 

My BiL is intending to sell his Scooby 2L turbo 'estate'. 'R' reg though,
too old for you?
Here's pic : http://www.robdunsford.com/scooby.jpg
I can let you have the details if you want. It's had all the 'sensible'
engine & exhaust mods.

But the main reason he's selling it is it's dire fuel economy. Would that be
a problem for you?

 

Our printers have got one and I've been a passenger in it. Indeed, it
shifteth. The interior fabrics and trim take a bit of getting used to,
mind.

 

So, where did you get 500 quid a month from.

Ah, there's the rub. When my current employers bought my previous
employers, my contract was fucked about such that I'm eligible for a
£14k car. We were all royally screwed over, to be frank, with a "sign
it or find a new job" ultimatum. I'd *just* got the Saab at the time,
so figured that I had 3 years to see what happened. But now that
particular chicken has just come home to roost.

Cahn :-/

 

Hang on a mo. If the Skoda is based on the Golf, how does it have the
same performance as a Scooby?

 

don't forget that all your costs associated with work apart from going to
and from become tax deductible and you can claim a right down value of 25%
per year on your car less a percentage for private use

you can set all service costs and insurance too against your tax again less
a percentage for private use

 

I find it very hard to admit, but this is in fact true :-/