Alphalease company car, or keep my own?

[billyliar]

Hi

Just looking for a bit of advice.

I currently have an 18 month old Cooper S which will be paid for in full in 18 months time. My insurance is 1800 quid a year due to zero NCB - and that's honestly the cheapest I can find it.

I have the option at work of either an extra 340 a month which I will be taxed on, so probably works out at 250 or so. Or, I can choose any car from Alphabet leasing up to the value of 300 a month, and I won't have to pay insurance either. I can also pay up to 100 of my own money to lease a better car.

Given the cost of my insurance, and the fact I could sell the MINI, clear my debts and have a fair wedge in the bank, do you think I'd be best getting rid?

Monthly repayments are 179 for the next 18 months and insurance is 150 per month.

I only do around 10k miles a year, but still want something within budget that is sporty and won't kill me on company car tax due to emissions etc.
Thanks in advance.

[AMST09]

What can you get for the £300 a month?

[billyliar]

Not sure at the moment. Only registered an account with them today, and it takes 24 hours to become active and receive quotes.

I think it's likely to be a car valued around 15K assuming I choose not to pay anything from my own pocket.

[billyliar]

Also, I'm just looking for opinions based on financial sense rather than just the potential choice of car.

Thanks.

[Ozone]

Is your budget £300 inc vat or without? It can make quite a difference in what you can get.

[billyliar]

Ozone said:

Is your budget £300 inc vat or without? It can make quite a difference in what you can get.

I'm not sure, good point though, will check.

[adycav]

Apart from the (obviously important) financial aspects, there are two questions that you need to answer:

1) How much do you enjoy your Mini?
2) What company motors can you get?

[Ozone]

^^^^^^ True.

Also the amount of miles you do. If you don't do alot then leasing maybe an expensive route.

Edited by Ozone on Wednesday 2nd June 21:33

[billyliar]

adycav said:

Apart from the (obviously important) financial aspects, there are two questions that you need to answer:

1) How much do you enjoy your Mini?
2) What company motors can you get?

I do like the MINI, but it's the appeal of being able to sell it and thus clearing all the debts I have and also have a fair wedge in the bank. I'm only 25 but I think the sensibility thing is kicking in.

Don't get me wrong, I like the car but the insurance cost alone is shocking.

I suppose it would also be nice to drive a car you're not bothered if somebody bangs in to it, or worry about all the other associated motoring costs.

Other than 400 a month rent my other outgoings are peanuts really. The car is my biggest drain.

[matt21]

I appreciate I am jumping to a few conclusions, but...

If £300pm month will get you into a car with value of circa £15,000 your extra £100pm should see you swanning about it virtually a £20k car.

Why not see if your £400pm will get you into a new Cooper S if you do like it. You will be net £350ish a month down on keeping yours wage wise, but will make that back on saving £300pm on repayments and insurance, and will soon be quids in once tyres, brakes, extending warranty and so on come into play.

[billyliar]

matt21 said:

I appreciate I am jumping to a few conclusions, but...

If £300pm month will get you into a car with value of circa £15,000 your extra £100pm should see you swanning about it virtually a £20k car.

Why not see if your £400pm will get you into a new Cooper S if you do like it. You will be net £350ish a month down on keeping yours wage wise, but will make that back on saving £300pm on repayments and insurance, and will soon be quids in once tyres, brakes, extending warranty and so on come into play.

Cheers for the advice. It's worth thinking about.

Although I will also be slapped for at least another 100 a month for tax too in that particular car I imagine.

Also taking the cash would push me in to the 40 per cent tax bracket too, as I currently earn 35k.

[Deva Link]

billyliar said:

Also taking the cash would push me in to the 40 per cent tax bracket too, as I currently earn 35k.

- and so will the BIK value of the company car.

For 20% tax payer, taking the company car is an absolute no-brainer. The decision might be a bit trickier depending on much of your income is taxable at 40%. You need to decide on a car and get its BIK value.

Given your other comments though, if you can find a car on the list that you'd be happy with, then it makes a lot of sense to take the car and clear your debts. Plus, you're building up your NCB at someone else's expense.

[Leicesterdave]

billyliar said:

I'm only 25 but I think the sensibility thing is kicking in.

You are indeed very young- too young to be sensible imo!

Edited by Leicesterdave on Wednesday 2nd June 22:10

[Rob P]

At 24 I was in a similar position. Sold the car, cleared the debt and got a Seat Leon company car. Free fuel, insurance and no debt. Five years on and after 3 more company cars and with some cash saved up I was ready to take the cash and get something interesting again, turns out I left the job anyway!

Depends on priorities I guess. Do you actually need a car for company use? Do you need to hammer up and down the m-way doing company miles/commuting? Could you sell the mini, clear debt and buy a second car and keep the company car as a mile muncher?

[billyliar]

I only cover around 10k miles a year or so, so just one car is ok.

A cooper s as a company car wouldn't be too bad as list price isn't too high and emissions are low.

[billyliar]

OK, turns out I can get a new Golf GT-D 170 with the allowance plus 90 quid of my own money. Tax is around 900 or so per year. So the best part of 200 per month if I opt for it.

Or I can get 250 or so cash allowance in my wage packet.

What do you reckon?

[Mansell90]

billyliar said:

OK, turns out I can get a new Golf GT-D 170 with the allowance plus 90 quid of my own money. Tax is around 900 or so per year. So the best part of 200 per month if I opt for it.

Or I can get 250 or so cash allowance in my wage packet.

What do you reckon?

Does it have to be the GTD? the 1.4 tsi 160 would probably be a nicer car to drive, just as quick and almost as economical, probably a bit cheaper too... from the reviews it would seem that the tsi engine looks like the best of both worlds by comparisson to the diesel.

[edo]

Check out the 1 series, the C02 (and thus tax) is much lower than the VAG stuff.

[Mansell90]

edo said:

Check out the 1 series, the C02 (and thus tax) is much lower than the VAG stuff.

This, i suspect a 120/123d would be a nicer car to drive than the golf aswell.

[billyliar]

Unfortunately it has to be an astra or golf, and it has to be a diesel variant.

Given that, I think the gt-d is the best bet.