Smallest/cheapest new car to do 120k in 4 years

[A900ss]

I'm thinking of opting out of the company car scheme and taking the cash.

I do about 30k a year and the scheme means it is still financially advantageous to opt out of my company car.

Most of my driving is single A roads at 60/70, perhaps 15-20% on the motorway at 80 and a VERY small amount in town.

90% of the time it will be 1 up but I need a hatch for when I take the dog out for a walk.

Thankfully I have a V8 in the garage for fun so don't need a 'fast' car, just transport. Comfort is probably the most important thing so I'm currently thinking either a V40 D2 or a 116D. Neither are balls of fun but 115/120HP should be sufficient.

Any other cars/comments on those two above most welcome.

Possibly a DSG Octavia, a Focus?

PS - Car would be on bought new on a PCP with no intention whatsoever to retain the car as I have a hard 5 year limit on the scheme

[ZX10R NIN]

Take a look at the 1.5d Focus ST Line in Auto trim there are some good deals on these at the moment.

This is just an example so you can see an example:

http://www.autotrader.co.uk/classified/advert/2017...

Or take a look at the Alfa range not sure the Alfas come with big discounts:

http://www.autotrader.co.uk/classified/advert/2017...

http://www.autotrader.co.uk/classified/advert/2017...

Mazda3 Sport Nav

http://www.autotrader.co.uk/classified/advert/2017...

Fiat Tipo

http://www.autotrader.co.uk/classified/advert/2017...

Kia Optima

http://www.autotrader.co.uk/classified/advert/2017...

Kia Pro_Ceed

http://www.autotrader.co.uk/kia/proceed/hatchback/...

Kia Ceed

http://www.autotrader.co.uk/classified/advert/2017...

From the list above I'd take the Kia Optima it'll eat the miles & most importantly be a comfortable place to eat up 30k a year

Edited by ZX10R NIN on Friday 19th May 21:30

[Trabi601]

30k miles?

Take the company car. The calculations only work until you pick up a couple of punctures or other bills in a short timespan.

And at 30k miles you want something fit for purpose, not a money saving cheap hatch.

Your business miles are similar to mine, I do them in a 5 series and would be reluctant to move to anything smaller and less refined.

[A900ss]

I've currently got a c class, had a 5 series prior and you'd be surprised on the savings.

Let's say a DSG Octavia VRS (reasonable car) on a 30k p.a. lease over 4 years.

Versus my company car the Octavia would be £250/month after tax better off with full maintenance, tax and insurance plus another £50/month for contingency.

45p for first 10k and 25p after plus allowance and not paying the BIK goes a long way.

[Trabi601]

Either you're stuffing up the calculations, or your company pays a silly amount as an opt-out.

Most people doing 20k or more miles per year who opt out end up in a very similar car to their company car and would be buggered if a reasonable sized bill hit them.

[daemon]

A900ss said:

PS - Car would be on bought new on a PCP with no intention whatsoever to retain the car as I have a hard 5 year limit on the scheme

Have you priced a new car with a PCP deal and those miles? I think the figures wouldnt stack up?

You could buy something like a year old Passat 2.0 DSG SE Business with low miles. With SE Business spec you've adaptive cruise, Nav, DAB, parking sensors front and rear, etc.

http://www.autotrader.co.uk/classified/advert/2016...

A £15K personal loan over five years will come in at less than £300 a month.

[A900ss]

Thanks for your lovely comments but I’m fairly sure no ‘stuffing’ up of calculations on monthly numbers:

Current BIK -£240
Private fuel contribution - £100
Current Cost -£340

Opt out:
Allowance £300 after tax (£500 gross, 40% tax)
Octavia Vrs -effective of £387/month (£345 PCP/month + £2k deposit/48 months) for a 120k/48 month PCP
Insurance -£41.66/month
VED -£11.66
Fuel cost -£295 (at 45MPG)
Tyres/brakes/servicing -£145
Ad Hoc -£50
Fuel expenses to be claimed at 45p/25p a mile +£583
Opt out total cost -£47.32

Current cost -£340
Opt Out £-47.32

Difference £292.68 in my favour

Welcome to challenges if I’ve missed any costs. All costs are monthly

[Trabi601]

Fuel expenses.

They're HMRC rates. Very, very few companies actually pay those rates for those opting out. Usually it'll be around 12p / mile. Makes the calculations very, very different!

Also, where is the cost of your private miles in the opt out calculation?

We get charged our private miles at our average fuel cost per mile (calculated by our fuel card account), so you. It's be doing lots of private miles per month!

Edited by Trabi601 on Friday 19th May 22:18

[A900ss]

Trabi601 said:

Fuel expenses.

They're HMRC rates. Very, very few companies actually pay those rates for those opting out. Usually it'll be around 12p / mile. Makes the calculations very, very different!

Correct. HMRC rates and I do get paid at those rates.

[Trabi601]

A900ss said:

Trabi601 said:

Fuel expenses.

They're HMRC rates. Very, very few companies actually pay those rates for those opting out. Usually it'll be around 12p / mile. Makes the calculations very, very different!

Correct. HMRC rates and I do get paid at those rates.

Check, double check, triple and quadruple check. Then get the most senior person in HR to send this to you in writing, signed in blood.

I've seen many people make this mistake!

Company policies quote a rate for using a private car for business, but this is for those not in receipt of a car allowance. If you get a car allowance, I suspect you'll still have the company fuel card.

As I said, very few companies pay the full HMRC rate if you get a car allowance, but lots of people find this out after signing up for a lease.

[A900ss]

Trabi601 said:

Check, double check, triple and quadruple check. Then get the most senior person in HR to send this to you in writing, signed in blood.

I've done this. Like I said, the numbers work under these conditions.

[Jag_NE]

agree. opt out per mile rates tend to stingy

[BoRED S2upid]

Agree with your choices of a v40 (we have a v60) or the BMW they are nicer places to be than a focus and at 30k a year your going to spend a lot of time in the car.

[Trabi601]

BoRED S2upid said:

Agree with your choices of a v40 (we have a v60) or the BMW they are nicer places to be than a focus and at 30k a year your going to spend a lot of time in the car.

But don't underestimate how horrible they are compared with something a couple of sizes higher. Especially the BMW. At least the V40 D2 doesn't have enough power to show up the inadequacies in the chassis!

[interstellar]

Personally after a couple months with a cheaper car I would regret it.

I would go middle of the road and get a 320D BMW and it least it would be comfortable, 4 doors and have enough power.

[daemon]

A900ss said:

Thanks for your lovely comments but I’m fairly sure no ‘stuffing’ up of calculations on monthly numbers:

Current BIK -£240
Private fuel contribution - £100
Current Cost -£340

Opt out:
Allowance £300 after tax (£500 gross, 40% tax)
Octavia Vrs -effective of £387/month (£345 PCP/month + £2k deposit/48 months) for a 120k/48 month PCP
Insurance -£41.66/month
VED -£11.66
Fuel cost -£295 (at 45MPG)
Tyres/brakes/servicing -£145
Ad Hoc -£50
Fuel expenses to be claimed at 45p/25p a mile +£583
Opt out total cost -£47.32

Current cost -£340
Opt Out £-47.32

Difference £292.68 in my favour

Welcome to challenges if I’ve missed any costs. All costs are monthly

So £387 * 48 to drive a rented Skoda for four years = £18,576.

From my Passat example and borrowing the full £16K over 4 years comes to approx £17,150.

5 year old passats with a bit of spec and 120K-130K are making at least £5K.

So £12,150 over the same four years in a Passat 2.0 TDI DSG compared to £18,576 in the Skoda?

That would convert the £292.68 per month in your favour to £426.55 per month.

Edited by daemon on Saturday 20th May 08:40

[Backtobasics]

Insurance and Fuel wont be a constant value too

[daemon]

A900ss said:

I've currently got a c class, had a 5 series prior and you'd be surprised on the savings.

Let's say a DSG Octavia VRS (reasonable car) on a 30k p.a. lease over 4 years.

Versus my company car the Octavia would be £250/month after tax better off with full maintenance, tax and insurance plus another £50/month for contingency.

45p for first 10k and 25p after plus allowance and not paying the BIK goes a long way.

I would absoultely not be commited to a 4 year high monthly payment on a rental car.

4 years is an awful long time and circumstances change - you could change roles, change jobs, no longer be with that company, new management / change of policy, etc, etc.

At least if you commit to a low APR personal loan for a car and buy it, its yours to do with as you please and if circumstances change you can punt it on and clear the loan.

A 4 year lease commitment and you're in a very deep hole if you suddenly need out.

[daemon]

Also a 5 year hard limit on the scheme but a 4 year rental doesnt seem wise?

If you did a loan - Passat or otherwise - you could pay it off over 4 years and have a year "free" from payments but drive on at it OR pay it off over the five years.

[A900ss]

daemon said:

Also a 5 year hard limit on the scheme but a 4 year rental doesnt seem wise?

If you did a loan - Passat or otherwise - you could pay it off over 4 years and have a year "free" from payments but drive on at it OR pay it off over the five years.

Good comments.