Bangernomics verses New Cars

[TheAngryDog]

edc said:

You can get fully maintained leases that include tyres.

Learn something new every day. I am sure that they will be an added extra on top of the OP's initial offer?

[dvs_dave]

People are confusing owning a desirable but older high days and holidays type car that they wouldn't normally be able to afford new with something that is entirely affordable but used as a daily hack that just needs to reliably get your arse from A-B with the minimum of fuss. Two very different sets of requirements.

[JumboBeef]

Thanks for the interesting and varied replies.

No deposit. Just click accept and the car will be delivered to home (or wherever) and you just start paying the monthly fee. Everything included, including tyres. Just add fuel.

As for the chap who hates his A1, and the others who talk about daily hacks to get from A to B, this is why I was looking at a GTD (or an R) as it is interesting to drive. I could, for less, get a "normal" Golf Diesel.

[Digby]

JumboBeef said:

As for the chap who hates his A1, and the others who talk about daily hacks to get from A to B, this is why I was looking at a GTD (or an R) as it is interesting to drive. I could, for less, get a "normal" Golf Diesel.

I guess my point was that whilst the scheme is good and gets you in to a new motor, I still find bangernomics a far more enjoyable way to travel.

The golf wouldn't be interesting to drive for me as I just don't really enjoy new cars.The A1 we have handles superbly, has traction and stability options along with sport suspension settings (all changed at the press of a button) and still has more BHP than certain sporty Fords had back in the day - it does everything really, really well whilst offering 50+ MPG.

I could have gone for dozens of even 'faster' models, but I would have to flip a coin to choose between a rapid Skoda, Ford, Seat, VW etc as I wouldn't be able to tell them apart once driving.In terms of making progress on roads we deem fun to drive, none of them would be that much different to the Audi we have now.Even in non-sport mode, it feels like it's never going to lose grip and can cover ground quickly enough to satisfy most.

Maybe I'll love it in twenty years time...

As mentioned, the salary scheme includes everything, although they use terms such as "free servicing, tyres, tax and MOT" but the reality is your new car could cost next to nothing for tax, wouldn't need an MOT for a few years, would be unlikely to need tyres in two years and would probably have a first service free if you had purchased it.I see no real savings with any of those suggestions over a two year term, although the insurance probably saves us £300 a year and you get a list of numbers to call if anything at all should go wrong.

Your tax code changes, too, so you save a little due to paying less tax and also as mentioned there is no deposit to put down and no credit check required.As long as you have worked for the company offering the scheme for a certain period of time, you are pretty much guaranteed to be accepted.To choose a car, we went online, picked one from hundreds, added any options required, sent off a few bits of paperwork, sat back, waited (for almost two months due to long lead times on most) and had it arrive at a place of our choosing.

Edited by Digby on Sunday 30th August 07:20

[rufusgti]

hairykrishna said:

JumboBeef said:

Repairs over the last couple of years must be more than a couple of grand (not helped by having to do the clutch and flywheel). So let's knock a hundred off each month.

I reckon this is where your man maths kicks into high gear. If you're spending £1200 a year on repairing your 'banger' then you're doing it wrong.

Absolutely! I don't think I've spent 1200 quid on repairs in the last 8 years.

You will never make the costs stack up against an old banger, but that's fine.

The only time I consider it is when I'm dropping the car at the garage and rushing around to get to/from work, or when I'm messing about with broken bits. I'm lucky enough to have not had a breakdown in the last ten years. That will probably be the day I sign the dotted line. However I'm not convinced you're much less likely to breakdown in a new car.

[eliot]

If it's anything like pension salary sacrifice, then dont forget that it's your post sacrifice salary they use for mortgage multiples/affordability calcs.

[BoRED S2upid]

A golf GTD is going to depreciate faster than that £320 a month repayment believe me I've a mate who wants to get out of his deal. He would have to buy his way out of it at the moment.

The way I see it I could have a bend new GTD or a £4000 car every year and trow it away. £4000 buys you quite a lot of hassle free motoring. And in 10 years time I could probably have that GTD.

[Ilovejapcrap]

How much is the most basic car you can get a month on the scheme ?

Take desirability out of it and look at it like a transport cost every month and it makes more sense.

Personally I'll stick to my 170,000 miles 56 plate Audi A3 for now.

[Bonefish Blues]

OP, did you forget Benefit in Kind as these (correct me if I'm wrong someone) schemes usually mean it is payable.

[nute]

Do you still have to pay company car tax on the salary sacrifice scheme?

[Bonefish Blues]

Typically yes AIUI. Certainly do on ours.

http://www.hitachicapitalvehiclesolutions.co.uk/ca...

[technodup]

My 02 A6 I had for two years before it was written off. Cost me £1500 which I paid over 6 months just because I could (came from a client). Insurance paid me more than £2k to settle, so it cost me nothing to drive for two years.

All my servicing, labour and MOTs are done free, the only part I needed was a sensor at £240. I did a wee deal for some free tyres iirc.

Spent £2800 on an 08 X-Type and plan on getting rid later this year. Got it cheap because it needed wheels and a dent doing. I'll get them done for free and hopefully will break even. Three years of motoring for a total cost of nothing. And not it total snotters either.

Obviously petrol, insurance and tax I can't avoid (although my insurance is up soon and I'm now thinking I can get someone else to pay it for me) but as I'm able to barter for almost anything it means that £4k/yr is in my pocket and not someone else's.

I know I'm in a better position than most getting stuff for free but even without I'd always duck and dive with something older rather than a lease.

[TwigtheWonderkid]

BIK is indeed the "horseshoe in the boxing glove" on these schemes. I've never seen one that worked well unless the driver actually wants a low co2, low list price car. Then they can be brilliant.

[eliot]

So if I've got this right, the BIK value for a Golf 2.0 TDI GTD 184PS BMT DSG - Semi-automatic 7-speed is £5942, if you are a basic rate tax payer it will cost you £1188 a year (or ~ £100 a month)

http://www.nextgreencar.com/company-car-tax/calcul...

[Bonefish Blues]

Yep, and note that it will ramp up each tax year.

[JumboBeef]

My quote:

Make VOLKSWAGEN Range GOLF
Model GOLF DIESEL HATCHBACK
Fuel Diesel
Derivative 2.0 TDI GTD 5dr [Nav] Colour Pearl - Deep black Options Pearl - Deep black~Jacara cloth - Grey
SALARY DEDUCTION SCHEME
Deduction from net (take home) pay £368.76 Monthly Car Tax Liability £0.40 VAT £73.75
Total Estimated Monthly Cost £442.91 SALARY SACRIFICE SCHEME
Monthly Gross Salary Sacrifice £374.17 Savings on NI (£39.66) Savings on Tax (£67.88) Savings on Superan (£34.80) Total Savings per month (£142.34) Monthly Take Home Pay reduced by £231.83 Monthly Car Tax Liability £88.90 Total Estimated Monthly Cost £320.74

[Bonefish Blues]

I does include it then

[rb5er]

JumboBeef said:

I'm sitting here typing this while I get a puncture repaired for the bargain price of £25. That's a cost I wouldn't have to pay on a new car, and it gets me thinking about all the other costs that add up. Repairs over the last couple of years must be more than a couple of grand (not helped by having to do the clutch and flywheel). So let's knock a hundred off each month.

That brings it down to £135 per month.

Then of course there is depreciation. Say you get £200 spares or repair, that's £1,200 lost over three years

For a start you would still need to get a puncture repaired with a lease car, same as having to replace worn out tyres and brakes but they would be far more expensive.

Secondly in the 3 years of owning my S60 its only needed 400quid spending in repairs and servicing. It cost me 1500quid to buy and is probably worth a grand if not more still now.

Your man maths is either not adding up or you have crap bangers.

300quid a month may be the monthly payment of a lease Golf R but have you forgotten about the few thousand pounds of deposit?? It will cost you 10k over 2 years to rent the Golf. That is in no way comparable financially to owning an old Volvo.

Edited by rb5er on Sunday 30th August 10:09

[JumboBeef]

All maintenance included, no deposit.

[Digby]

The cheapest car on the list available for me was a new Peugeot 108 iirc.That was around 160 pm including BIK.The Audi sportback sport we ended up with, with an upgraded stereo, bigger wheels, contrast roof and a few other bits is around £315 pm inc.

There was quite a big jump price wise to A3's and 4's and even the most basic BMW.I'm no badge snob; my other half just liked them because two of her friends had them so I left it up to her.If I were choosing, I probably would have gone for a Skoda estate.


Forgot to add - there is also an option to buy at the end of the term if you wish, or, you simply pick another car.

Edited by Digby on Sunday 30th August 12:56