Car allowance buying advice

[Ramsden2019]

Hello everyone,

I’m considering taking a job that will have a £450pm car allowance. I’m a 20% tax payer so in reality more like £360.

I’m currently paying £310 a month for my car which is paid off in 2 years. (Hyundai i30n)

It would be cool having the i30n for a weekend and something like a 2 year old 320d for the business trips during the week - probs about 12k miles a year.

But it just seems a bit unneeded having 2 cars and I’m not sure the diesel life is for me!

My thinking is, I sell off my i30n for circa 20k, pay off the finance remaining which is about 8.5k. Pocket the rest for a house deposit and using the £360 car allowance + some of my own cash say total of £450-500 get into something ideally petrol, fun to drive but practical, comfy and businessy?

My initial thoughts would be something like a Jag XE / F pace but with a zesty engine either the v6 diesel or petrol. Or something like an Audi s4 avant but is that doable on these sort of figures? Would it just get stolen as I live in West Yorkshire? Would the fuel economy be too bad? Obviously can claim 40p per mile on the business trips.

All of your thoughts / experiences of those cars/ similar situations would be appreciated!

[parabolica]

Check to see if the employer has limits/requirements on what car you need to use for business; some do, some don't. Those who do will often make stipulations such as fuel type, body type, age etc.

TBH I've just done the same (my employer doesn't impose any guidelines) and ended up with a year old V60 D4 that the first owner ticked ever option box on. Just keep in mind all costs you need to cover - car, maintenance, insurance etc.

[DaveH23]

For only doing 12k a year why not keep the i30?

Once you factor in your mileage claim you could even make money once the car is paid for.

[Ramsden2019]

V60 D4 - nice motor! That's true there needs to be some left over each month to cover all the extras, tyres, wear and tear insurance - my man maths say that as long as I'm in a new car and better off for it overall it's a winner!

[Ramsden2019]

DaveH23 said:

For only doing 12k a year why not keep the i30?

Once you factor in your mileage claim you could even make money once the car is paid for.

That's true think I need to consider it as an option - MPG is around 35-36 on a longer run sat at circa 70 so not bad economy considering performance. Only slight problem it doesn't look very 'professional' but i'd say what client wouldn't be impressed by it!

[DaveH23]

I travel to different customer sites daily and have done for several years, granted I use hire cars but not one of them (Hundereds possibly in to the thousands of clients) has even noticed or commented on what car I have turned up in.

They range from Start Up's to ERP size Business's as well was Schools and Charities.

[TwigtheWonderkid]

I'd go for the cheapest lease deal you could find that offered a car that did the job, and had good fuel economy. You should be about to get something for around £150/month easily. Maybe even less. If it is £150, the £210 out of your £360 that you aren't spending, pay into a pension. This'll be grossed up by the govt to £262.50.

It may be miserable for now, but in time to come when you retire early and by yourself a really nice car to tour Europe in, whilst all the other saps are still working, it'll be worth it.