What car finance options?

[NotKenBlock]

So having had a company car for years i feel a bit out of touch when it comes to car finance.

I have recently taken a job with a car allowance (£580 a month) and need to fund my own car.

Simple option appears to be a bank loan, but what about others? Contract hire / purchase?

I have a small deposit and am happy with a 'balloon' payment at the rns of a deal. I will be doing around 25k miles per year.

So what's my best option??

Thanks

[NotKenBlock]

Sorry quick bump..

anyone?

[Ramses]

PCP (or similar schemes) are the obvious route.

Not ideal with £25k per year, but still some good option. Rates are high, so you will need to really push providers hard - 9% APR should be achievable.

That said with that level of milage, taking say a £15k loan out over 3 years and buying your own might be a better solution.

[Big E 118]

I've seen BMW are doing a PCP type deal on M3's at the moment where they contribute £10,000 to the deposit and the monthly payments end up at around £570pcm. I would think they would also offer an HP type deal along the same lines.

I think whatever type of finance (PCP/HP etc) you go for you really end up paying pretty much the same at the end of the day but there are a lot of (what sound like) good deals going around at the moment.

What type of car are you looking for?

[Deva Link]

NotKenBlock said:

I have recently taken a job with a car allowance (£580 a month) and need to fund my own car.

I will be doing around 25k miles per year.

So what's my best option??

Best in what way? New car or used car? Cheapest, least risk, best car? Including or excluding maintenance?

Have you figured out how much money you'll have? Your allowance is taxable at your highest rate, but you'll get a mileage allowance (do you know how much?) and possibly a tax rebate. How many of those 25K miles will be business miles?

[NotKenBlock]

Thanks chaps, to answer questions;

new or used, but need it within about 30 days (notice between jobs)
cheapest or with smallest deposit really (as I don't have one, I'm expectng to pay more a month than with one)
I'll get 40p a mile I believe up to 10k miles then 25p

[Deva Link]

NotKenBlock said:

I'll get 40p a mile I believe up to 10k miles then 25p

HMRC rates are now 45p, then 25p. It would be unusual for an employer to pay an allowance AND those rates. Typically employers pay maybe 15p and you claim the tax back on the difference from HMRC. Note you only get the tax back, so you get 20% or 40% of the difference back, NOT the whole amount.