Volkswagen Passat Estate 2.0 TDI SE Business (150 PS) DSG
Discussion
First of all I hope it's ok to post this and it's in the right section.
I'm looking at getting either a new or nearly new Passat Estate for my business. It's going to be used to go back and forth to exhibtions and shows so I need something that's comfortable doing long distance motorway journeys but also have the space to carry all the promotional junk in the back. This particular model and spec seems ideally suited to me.
I've had quotes of £23,500 for a brand new car (including metalic paint) which would cost me around £270 per month based on me putting down £5k, doing approx 12,000 miles per annum with a final balloon of £11,250 in 3 years - total to be paid would be approx £26k. I've had a brief look at some nearly new cars available at main dealers and 1 year old models with the same spec are going for between £19,000 and £19,500 depending on mileage - but with VW throwing in £1,250 if you buy them on finance. I've had a finance quote on a car listed at £19,000 of £205 per month with a balloon of £9,600 based on me putting dowin £4,500 (max I could put to get it on PCP) - total to be paid would be approx £22,500.
The price on the new car is pretty much as good as I can get (although feel free to correct me if I'm wrong) but the quote I've recieved on a used car has no discount from the dealer, just the £1250 from VW. First question is what is a reasonable amount to expect to be able knock the dealer down on that sort of car? And secondly, how much cheaper, in your opinions, would the 1 year old car need to be to justify going for that over brand new.
I'm looking at getting either a new or nearly new Passat Estate for my business. It's going to be used to go back and forth to exhibtions and shows so I need something that's comfortable doing long distance motorway journeys but also have the space to carry all the promotional junk in the back. This particular model and spec seems ideally suited to me.
I've had quotes of £23,500 for a brand new car (including metalic paint) which would cost me around £270 per month based on me putting down £5k, doing approx 12,000 miles per annum with a final balloon of £11,250 in 3 years - total to be paid would be approx £26k. I've had a brief look at some nearly new cars available at main dealers and 1 year old models with the same spec are going for between £19,000 and £19,500 depending on mileage - but with VW throwing in £1,250 if you buy them on finance. I've had a finance quote on a car listed at £19,000 of £205 per month with a balloon of £9,600 based on me putting dowin £4,500 (max I could put to get it on PCP) - total to be paid would be approx £22,500.
The price on the new car is pretty much as good as I can get (although feel free to correct me if I'm wrong) but the quote I've recieved on a used car has no discount from the dealer, just the £1250 from VW. First question is what is a reasonable amount to expect to be able knock the dealer down on that sort of car? And secondly, how much cheaper, in your opinions, would the 1 year old car need to be to justify going for that over brand new.
If it's solely for business use, would a cheap lease on a half decent big-boot saloon not make better sense than a (usually quite expensive) PCP deal? Apologies if you have already explored this route - just felt it worth mentioning!
The interest rates on the used cars seem to be 10.9% from memory and new is 6% - hardly the cheapest method to finance.
I know it's a totally different car and not the answer to the question you asked - but a Skoda Superb (might even have more boot space) £2.5k down + 149/mo inc vat = £246/mo inc vat then you get a new one every 2 years! Excess mileage will take £168 over the 2 years off you.
http://www.simpsonsskoda.co.uk/new-car-offers/new-...
The interest rates on the used cars seem to be 10.9% from memory and new is 6% - hardly the cheapest method to finance.
I know it's a totally different car and not the answer to the question you asked - but a Skoda Superb (might even have more boot space) £2.5k down + 149/mo inc vat = £246/mo inc vat then you get a new one every 2 years! Excess mileage will take £168 over the 2 years off you.
http://www.simpsonsskoda.co.uk/new-car-offers/new-...
Edited by codenamecueball on Friday 17th February 18:23
Edited by codenamecueball on Friday 17th February 18:24
Thanks for taking your time to reply.
I should have gone into a bit more detail. We're dog breeders and are about to bring out our own dog biscuits so as well as all the promotional junk, there could be the odd Cocker Spaniel in the back too which rules out a saloon and probably a lease too. I'm not sure in 2 or 3 years the car will be in fair condition after having those nutters bouncing around the back.
The plan is to purchase the car outright in the end. I wouldn't rule out paying cash for the car but, particularly on the new car, they're offering a far better price if you buy it on finance. And ultimately that £20k odd being spent on the business will hopefully bring a far greater return than the few grand in interest I'll pay over those 3 years.
Edit: I've just noticed, the total amount paid on the used car will actually be £21250 not £22500. I forgot to deduct VW's contribution.
I should have gone into a bit more detail. We're dog breeders and are about to bring out our own dog biscuits so as well as all the promotional junk, there could be the odd Cocker Spaniel in the back too which rules out a saloon and probably a lease too. I'm not sure in 2 or 3 years the car will be in fair condition after having those nutters bouncing around the back.
The plan is to purchase the car outright in the end. I wouldn't rule out paying cash for the car but, particularly on the new car, they're offering a far better price if you buy it on finance. And ultimately that £20k odd being spent on the business will hopefully bring a far greater return than the few grand in interest I'll pay over those 3 years.
Edit: I've just noticed, the total amount paid on the used car will actually be £21250 not £22500. I forgot to deduct VW's contribution.
Edited by ez5 on Friday 17th February 19:01
Thanks for the advise regarding the boot liner.
Both myself and my father lease our personal cars so I appreciate the benefits of leasing. For the business though I'm not sure it makes sense though. I want something purely for business use - I don't need to change car every 2 years (I'll be doing that with my personal car).
I've just done a very quick search and to lease the car above would cost me around £12,500 over 3 years. To buy, the 1 year old model is costing £11,800 over 3 years and the brand new £14,700. I guess the question now is, if I leased, in 3 years how much would I be looking at to buy a 3 year old equivalent car? For leasing to be cheaper than buying I'd need to pick up a 3 year old car for less than £13,500.
Both myself and my father lease our personal cars so I appreciate the benefits of leasing. For the business though I'm not sure it makes sense though. I want something purely for business use - I don't need to change car every 2 years (I'll be doing that with my personal car).
I've just done a very quick search and to lease the car above would cost me around £12,500 over 3 years. To buy, the 1 year old model is costing £11,800 over 3 years and the brand new £14,700. I guess the question now is, if I leased, in 3 years how much would I be looking at to buy a 3 year old equivalent car? For leasing to be cheaper than buying I'd need to pick up a 3 year old car for less than £13,500.
https://www.contracthireandleasing.com/car-leasing...
Working out about 11500 to lease for 4 years which I don't think is bad
Working out about 11500 to lease for 4 years which I don't think is bad
Buy it on PCP to get the VW contribution (and dealer if you can swing it) then just settle the finance once you've got the car? I confess i haven't looked into the detail of a PCP contract to see if this is possible but i know a colleague of mine recently did something very similar with a Golf GTI (not sure if it was PCP specifically).
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