Crazy idea???
Author
Discussion

miniman

Original Poster:

30,201 posts

293 months

Tuesday 25th March 2003
quotequote all
My company car is getting less and less cost-effective with the new tax rules etc so I'm thinking of opting out when it goes back (a while away yet...)

I should be able to get somewhere in the region of £5k per annum cash instead of the car, plus the tax savings. I'm wondering whether I can PCP / contract hire a TVR for that money.

Accepting that I will get clobbered on the mileage rate the company will pay for business use, what do you think about my plan?? I only do around 10k miles per year, including business, so I'm thinking that reliability shouldn't be a huge issue.

Anyone have a TVR on this basis (i.e. on finance)? What sort of monthly payments am I looking at? What are the hidden costs (e.g. servicing, tyres etc.)?

Am I mad???

plotloss

67,280 posts

301 months

Tuesday 25th March 2003
quotequote all
Last time I looked all TVR leasing was over £1K a month...

Matt.

alunr

1,676 posts

295 months

Tuesday 25th March 2003
quotequote all
Not sure if its you're thing or not but there are TONNES of deals about for financing Lotus Elise's.

minimax

11,985 posts

287 months

Tuesday 25th March 2003
quotequote all
well if you can get a TVR for 25k then look here loan info here the payments come out at about £488 p/m over 5 years. Otherwise I suggest taking out a PSL if you have a flexible mortgage and setting the term at 5 years as you will be able to borrow more due to the lower interest rates. If you need any further help post or mail me and I will help you.

Tom (CeMAP level 3 advisor)
here's a nice one
>> Edited by minimax on Tuesday 25th March 10:12

>> Edited by minimax on Tuesday 25th March 10:16

>> Edited by minimax on Tuesday 25th March 10:25

CarZee

13,382 posts

298 months

Tuesday 25th March 2003
quotequote all
come on then.. what's a PSL.. ?
CarZee (Grade 4 Financial Fcukwit )

trackdemon

13,480 posts

292 months

Tuesday 25th March 2003
quotequote all

CarZee said: come on then.. what's a PSL.. ?
CarZee (Grade 4 Financial Fcukwit )




Personal loan? F#kced if I know....

minimax

11,985 posts

287 months

Tuesday 25th March 2003
quotequote all
Personal Secured Loan. basically an extension to your mortgage by your current lender or a external one which would then be known as a second charge. as opposed to a USL which is an Unsecured Secured Loan or just "a loan"

>> Edited by minimax on Tuesday 25th March 10:21

nicholasblair

4,111 posts

315 months

Tuesday 25th March 2003
quotequote all
No chance.

The company car is an easy target for the Chancellor, but still hell of a lot cheaper than financing your own.

If you elect to pay for you own fuel, you can at least save on the Fuel Benefit which really is horrendous.

tonybav

15,519 posts

296 months

Tuesday 25th March 2003
quotequote all
Not sure I agree nb. Did the calculations for myself very low business use, no fuel, scheme managed by one of the big leasing companies, included all the costs of ownership including depreciation and I was better off buying my own car and taking cash alternative. The only risks are if the depreciation or maintenance is higher than expected. Whats more I get to drive the car I want, which is a griff.

It also may not work if you have a car scheme which does not properly reflect the economic cost of the car.

MikeyT

18,494 posts

302 months

Tuesday 25th March 2003
quotequote all
Normally though, for a car as expensive as a TVR, don't you have to put about a third down in cash or whatever?

These £500 a month leasings have a massive balloon at the end too.

Unless your co would sanction s s/hand vehicle?

CraigAlsop

1,991 posts

299 months

Tuesday 25th March 2003
quotequote all

nicholasblair said: No chance.

The company car is an easy target for the Chancellor, but still hell of a lot cheaper than financing your own.

Think it depends on your circumstances - I found it far cheaper to finance my own....

nicholasblair

4,111 posts

315 months

Tuesday 25th March 2003
quotequote all
I do agree with above, but will only work if good cash is offered by the employer.

daydreamer

1,409 posts

288 months

Tuesday 25th March 2003
quotequote all

nicholasblair said: No chance.

The company car is an easy target for the Chancellor, but still hell of a lot cheaper than financing your own.

If you elect to pay for you own fuel, you can at least save on the Fuel Benefit which really is horrendous.
I do 20k business miles a year. I have just bought my own Honda S2000 and am giving back my five year old, A3 1.8T.

Cost to have tha Audi as a company car £244 pcm
Cost to own the S2000 (inc depreciation, tax, personal petrol, service, insurance etc) £190 pcm

The Honda is worth at least double the Audi , and if I were to buy the Audi from work, I could probably ruin it for nothing (doesn't rev to 9000 rpm though )

What is stupid, is that if you do no miles for the company, then you are better off having a company car. If you need to do milage for your job, then you are better off buying your own.

Excellent thinking Gordon

Rich