Company car dilemma – Early termination for F82 M4
Discussion
So I currently have a BMW 330e as a company car which I had for 2 years, BIK is 12% circa £178.00 per month.
I have 11 months left on the lease meaning the cost to terminate early is circa 3k, but with the BIK saving it’s a 1k cost over the year.
I have agreed a car allowance amount, which would net me around £450.00 per month, and I am hankering for a M4. I would be getting a loan of about 11k, but the loan pay back and tax/insurance/main would be covered by the £450.00
But what I can’t work out what to do? Shell out now for the early termination and get a M4 for the summer
Or
Wait 11 month till the end of the lease then get the M4?
I have 11 months left on the lease meaning the cost to terminate early is circa 3k, but with the BIK saving it’s a 1k cost over the year.
I have agreed a car allowance amount, which would net me around £450.00 per month, and I am hankering for a M4. I would be getting a loan of about 11k, but the loan pay back and tax/insurance/main would be covered by the £450.00
But what I can’t work out what to do? Shell out now for the early termination and get a M4 for the summer
Or
Wait 11 month till the end of the lease then get the M4?
mr2turbogts said:
So I currently have a BMW 330e as a company car which I had for 2 years, BIK is 12% circa £178.00 per month.
I have 11 months left on the lease meaning the cost to terminate early is circa 3k, but with the BIK saving it’s a 1k cost over the year.
I have agreed a car allowance amount, which would net me around £450.00 per month, and I am hankering for a M4. I would be getting a loan of about 11k, but the loan pay back and tax/insurance/main would be covered by the £450.00
But what I can’t work out what to do? Shell out now for the early termination and get a M4 for the summer
Or
Wait 11 month till the end of the lease then get the M4?
You’d be nuts to pay £3k not to have use of your car anymore. Wait until expiry of the lease. I have 11 months left on the lease meaning the cost to terminate early is circa 3k, but with the BIK saving it’s a 1k cost over the year.
I have agreed a car allowance amount, which would net me around £450.00 per month, and I am hankering for a M4. I would be getting a loan of about 11k, but the loan pay back and tax/insurance/main would be covered by the £450.00
But what I can’t work out what to do? Shell out now for the early termination and get a M4 for the summer
Or
Wait 11 month till the end of the lease then get the M4?
Also- feel free to show your man maths calculations but the M4 isn’t costing £450pcm. I presume you’re putting a fair bit of cash in.
Of course if you’re absolutely loaded and money isn’t an issue then go for it and don’t worry about the cash.
You have a nearly new BMW 330e, fully funded, insurance, servicing, road tax, tyres, etc, all paid for, for a measly £178/month, and you're jacking that in because you fancy an M4.
No man maths can make that make sense. Utter madness. And if the M4 gets nicked, it'll be down to you to hire an alternative car whilst you wait for the claim to be settled, and the insurance excess will be on you, and you'll need to reinsure the new car with a £70K on your record.
Completely bonkers.
No man maths can make that make sense. Utter madness. And if the M4 gets nicked, it'll be down to you to hire an alternative car whilst you wait for the claim to be settled, and the insurance excess will be on you, and you'll need to reinsure the new car with a £70K on your record.
Completely bonkers.
Have you had a quote to terminate early? I threw back a Tiguan to Alphabet (BMW owned) and it cost me £150 and the car had 18 months left on the contract..
I took the cash, went electric and it's saving me £450/month net over having the company car (electric wasn't an option on the scheme)
I took the cash, went electric and it's saving me £450/month net over having the company car (electric wasn't an option on the scheme)
Surely you're missing out a decent chunk of cash that you'll be putting in yourself from your calcs? You're not getting an M4 for £11k, unless it's so knackered that you'd also need to factor in spending thousands to get it up to scratch. As it happens I'm thinking about an M4 myself so I totally understand that the want may be strong, but your numbers seem...optimistic, and actually paying to get out of your current arrangement does seem a bit mad.
mr2turbogts said:
Perhaps I didn’t explain this very well.
My maths is as follows
Early termination = 3k
Bik over the next 11 months = 2k
Total cost over the year to terminate = 1k
Costs of M4
Loan £250
Tax £30
Insurance £100
Maintenance £100
New company car allowance £450
Plus saving of BIk £178
Don't forget that you can't use your BiK saving twice in your man-maths.My maths is as follows
Early termination = 3k
Bik over the next 11 months = 2k
Total cost over the year to terminate = 1k
Costs of M4
Loan £250
Tax £30
Insurance £100
Maintenance £100
New company car allowance £450
Plus saving of BIk £178
i.e you can't use it to offset your termination cost, then use it again in your monthly cost calculation. You'll only get the monthly BiK saving after 11 months, or your cost to terminate is £3k
How many miles are you doing per year?
Insurance and Maintenance on an M4 seem light at £100pm each, unless you are doing tiny mileage.
Personally, given the timeframe, I'd just wait 11 months and get the M4 then. 11 months goes quickly.
Muzzer79 said:
Don't forget that you can't use your BiK saving twice in your man-maths.
i.e you can't use it to offset your termination cost, then use it again in your monthly cost calculation. You'll only get the monthly BiK saving after 11 months, or your cost to terminate is £3k
How many miles are you doing per year?
Insurance and Maintenance on an M4 seem light at £100pm each, unless you are doing tiny mileage.
Personally, given the timeframe, I'd just wait 11 months and get the M4 then. 11 months goes quickly.
This. Double counting the BIK is nice man maths though....i.e you can't use it to offset your termination cost, then use it again in your monthly cost calculation. You'll only get the monthly BiK saving after 11 months, or your cost to terminate is £3k
How many miles are you doing per year?
Insurance and Maintenance on an M4 seem light at £100pm each, unless you are doing tiny mileage.
Personally, given the timeframe, I'd just wait 11 months and get the M4 then. 11 months goes quickly.
Spend the next 11 months looking for your next car, and spend the money saved on owning and running the M4 over that period buying a better one
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