Advice needed! New job - Page 1 - Car Buying

FrankieMc

Original Poster

16 posts

101 months

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Sunday 22nd April 2018

Hi I'm currently procrastinating far to much! So need some advice!
I have recently started a new position, however my company have stopped the company car scheme. This means I will be traveling around 20,000 miles a year in my own car.
I currently drive a Volvo C30 but was recently in a accident so it needs around £1500 spending on it. (09 plate 60,000 on the clock)

I need something comfortable & good on MPG & of course reliable. My budget would be £250 per month. With around 1-2k deposit.

Leasing would this be the best option? However I can't seem to find any decent leases with them miles?

PCP would this be the best option? Can you hand the car back after 2 years?

Fix my current car & run it until it dies?

Cheers

FerdiZ28

1,355 posts

154 months

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Sunday 22nd April 2018

I’d do the latter as it’s a new job - keep the allowance, save on tax until you are sure it is a keeper of a role. Next one may have a better company car policy and you won’t be stuck with a lease.

Toed64

299 posts

140 months

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Sunday 22nd April 2018

Fix your Volvo and then service it lots and it should go on and on...especially if it's a 1560cc diseasel - that motor can get sludged a bit and there is a metal mesh on the oil feed to the turbo that gets blocked with dirty oil and kills the turbo bearings: change the oil more frequently and this is not likely to happen.

elanfan

5,527 posts

247 months

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Sunday 22nd April 2018

Get a loan that repays at £250 a month over 3 years which should give you £9kish add your deposit of £2k so that gives you a minimum of £11k plus whatever you get for your C30. So that gives you a nice lump. You could buy a new car with that but i’d suggest you find a very low mileage nearly new car so that you benefit from the vast depreciation over the first 6 months.

If you get 45p a mile that’s £27000 over 3 years subtract fuel from that probably leaves you £18000 (would a hybrid help with that? Different fuel reclaim rate?). If you can save most of that you’ll have the residual value of your car plus £18000 in 3 years time. (Excludes repairs and servicing etc but you’d have that on the C30 anyway).

Maybe?

A900ss

3,297 posts

172 months

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Sunday 22nd April 2018

elanfan said:

If you get 45p a mile that’s £27000 over 3 years subtract fuel from that probably leaves you £18000 (would a hybrid help with that? Different fuel reclaim rate?). If you can save most of that you’ll have the residual value of your car plus £18000 in 3 years time. (Excludes repairs and servicing etc but you’d have that on the C30 anyway).

Maybe?

HMRC guidelines are 45p/mile for first 10k and 25p/mile after that. So he won’t be getting £9k/year. That also assumes ALL his mileage is business which is very unlikely.

Most people do 8/10k private mileage a year so that means he’ll get circa £4,500/year for 10k business miles.

It also assumes the company pays full mileage rates.

OP- does your company have an allowance policy? My company insist on a car under 5 years old.

I personally wouldn’t want a C30 for 20k a year even if it is one of the more comfortable small cars.

Best of luck but unless you are getting a proper allowance (£400 Plus a month), I think the company are taking the P a bit....

Pica-Pica

15,738 posts

104 months

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Sunday 22nd April 2018

The HMRC allowable tax-free mileage allowance of 45p per mile, means if you want a decent car, some of that journey you are yourself paying for, unless you consider that 45p as the marginal (additional) cost to you. Some places pay less than 45p (some public authorities are an example).

About 18 to 22p per mile would cover fuel, service, and tyre cost. So at 20,000 miles you would get £4600 to cover depreciation. Your insurance would need to cover commuting, not sure all insurance companies like ‘commercial travelling’ (that is visiting many different sites in a year, whether you are selling or whatever).

I think some sort of lease, or a two or three year old car. In today’s employment world, will you be at this job long enough to justify a big initial financial commitment to it?

Also remember that the 45p per mile only refers to the car cost; 20,000 miles a year is well over an hour a day, how is your travelling time being paid?

ZX10R NIN

29,774 posts

145 months

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Sunday 22nd April 2018

FrankieMc

Original Poster

16 posts

101 months

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Tuesday 24th April 2018

[quote=FerdiZ28]I’d do the latter as it’s a new job - keep the allowance, save on tax until you are sure it is a keeper of a role. Next one may have a better company car policy and you won’t be stuck with a lease.

Sorry to be clear it's a promotion & not a new, new job! Pretty sure I'm going to be here for 2+ years.

FrankieMc

Original Poster

16 posts

101 months

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[news]

Tuesday 24th April 2018

elanfan said:

Get a loan that repays at £250 a month over 3 years which should give you £9kish add your deposit of £2k so that gives you a minimum of £11k plus whatever you get for your C30. So that gives you a nice lump. You could buy a new car with that but i’d suggest you find a very low mileage nearly new car so that you benefit from the vast depreciation over the first 6 months.

If you get 45p a mile that’s £27000 over 3 years subtract fuel from that probably leaves you £18000 (would a hybrid help with that? Different fuel reclaim rate?). If you can save most of that you’ll have the residual value of your car plus £18000 in 3 years time. (Excludes repairs and servicing etc but you’d have that on the C30 anyway).

Maybe?

The company have stopped any sort of car allowance. They require you to travel 50 miles before you can claim any mileage. Therefore if I traveled 52 miles in one direction I would be able to claim 2 miles! So all my mileage will be at my own cost frown

FrankieMc

Original Poster

16 posts

101 months

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Tuesday 24th April 2018

I've been looking at the skoda rapid spaceback, they seem to be a reasonable price. Has anybody had any experience of them? Remember I'm driving a Volvo C30.

elanfan

5,527 posts

247 months

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Tuesday 24th April 2018

FrankieMc said:

elanfan said:

Get a loan that repays at £250 a month over 3 years which should give you £9kish add your deposit of £2k so that gives you a minimum of £11k plus whatever you get for your C30. So that gives you a nice lump. You could buy a new car with that but i’d suggest you find a very low mileage nearly new car so that you benefit from the vast depreciation over the first 6 months.

If you get 45p a mile that’s £27000 over 3 years subtract fuel from that probably leaves you £18000 (would a hybrid help with that? Different fuel reclaim rate?). If you can save most of that you’ll have the residual value of your car plus £18000 in 3 years time. (Excludes repairs and servicing etc but you’d have that on the C30 anyway).

Maybe?

The company have stopped any sort of car allowance. They require you to travel 50 miles before you can claim any mileage. Therefore if I traveled 52 miles in one direction I would be able to claim 2 miles! So all my mileage will be at my own cost frown

What? So you have to fund business travel out of your wages?? What sort of crap company does that? You are effectively subsidising them. Are you sure this is actually a promotion as such? Madness.

Join a union and get them to take it up with the company. Make sure you claim the fuel as an expense against your tax.

shtu

4,046 posts

166 months

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Tuesday 24th April 2018

FrankieMc said:

The company have stopped any sort of car allowance. They require you to travel 50 miles before you can claim any mileage. Therefore if I traveled 52 miles in one direction I would be able to claim 2 miles! So all my mileage will be at my own cost frown

er, WHUT? You do a 50 mile trip on business and they pay you nothing? This "promotion" sounds like it's just cost you several thousand a year.

Refuse to use your own car (make up an excuse like wife is using it for commuting). Hire one when you need to do business travel.

FrankieMc

Original Poster

16 posts

101 months

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Saturday 12th May 2018

Yep it's quite frustrating especially since I've worked for the company for +8 years & they have always provided a company car for the position I've just been promoted to!

I only have one place of work so how would claiming tax back on fuel work?

I'm roughly 6k a year better off,taking £200 a month petrol costs into account.

grahamm

211 posts

222 months

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Saturday 12th May 2018

Are you driving for work or have you relocated to a different site which requires a longer commute?

FrankieMc

Original Poster

16 posts

101 months

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Saturday 12th May 2018

grahamm said:

Are you driving for work or have you relocated to a different site which requires a longer commute?

I work for a large leisure company.
I live in Manchester & have been relocated to Liverpool. So I will be commuting 5 days a week, mostly all motorway driving.

FrankieMc

Original Poster

16 posts

101 months

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Saturday 12th May 2018

grahamm said:

Are you driving for work or have you relocated to a different site which requires a longer commute?

I work for a large leisure company.
I live in Manchester & have been relocated to Liverpool. So I will be commuting 5 days a week, mostly all motorway driving.