Decision minefield!!!!

[NickdeBug]

Okay, help me out with a bit of cold logic as I seem to be in danger of pulling an oozulum bird and disappearing up my own rear end with this!

Situation:

Starting new job in beginning of August. Comes with decent car allowance and pays gov rates on mileage (confirmed in contract). So I will be going from doing 20k miles a year commuting to approx the same but for work. BIG net gain as I go from £5k/yr cost to £12k/yr benefit.

I have been running a Volvo V70 for a few years and love the comfort and practicality. It is beginning to show its age now (58 with 116k) and only makes 40mpg with a light right foot. Hence me thinking the time is right for a change.

Options:

1. Offered a 36 month PCH on Passat Estate GT 190ps for ~£350/month with 3 months initial payment. Available in Sept. 20k/yr inc servicing.

2. Offered a 48 month PCP on Audi A4 Avant Sport 190ps for ~£360/month with V70 as deposit (£4K). Available in July. 20k/yr inc servicing and warranty extension for 4th year. = 19% discount on list, 3.9% APR.

3. Take personal loan at 3.4% + V70 px and buy Skoda Octavia Scout 2015 with ~22k miles at £375 month for 36 months

I can see pros and cons for each so would be interested in hearing from anyone who has gone through a similar process.

Car wise, I like them all although the A4 is definitely the nicer environment and most economical. Passat comes with panoramic sunroof and their version of virtual cockpit which sounds good, Scout has the 4WD and no mileage restriction.


Yup, definitely about to fly up my own @rse!

Any advice?

[exelero]

Take a bank loan and go for a V90

[steve-5snwi]

run the v70, see if you like the job or if they like you, then buy a 2 year old ford mondeo outright with a bank loan and run it until it breaks. I wouldn't want to be getting tied up in a lease so early on with a new job. If you buy outright you should be able to get out reasonably cheaply.

[NickdeBug]

Beginning to think that you are right about settling in to job first.

Can't see any reason why it wouldn't work out but if i had a working crystal ball I probably wouldn't need to work in the first place!

Lease is not at all flexible - I think VWFS charge 12 months to leave early

Salesman insists the PCP on the Audi can be ended at anytime with one month's payment and interest, but I guess that will depend on the car valuation at the time.

Buying a nearly new can just be moved on if necessary so seems the smart choice.

V70 is just beginning to become less reliable so time for a change.

I'm afraid I won't be buying a Mondeo. I don't care about the badge or how good they are to drive - staring at that tinny dash for 4 hours a day would make me sad.

Shame that they don't still make the V70 anymore. V60 is no where near as good and V90 is a bit too shiny new and pricey at the moment.

[steve-5snwi]

I wouldn't have said the current shape mondeo has a crap dashboard, certainly no worse than the octavia.

Yes you can get out of a PCP at any point however you will usually find they break even after 24-30 months.

[CubanPete]

Defo settle into the job first, and get probation signed off.

Personally I find the VAG stuff very dull to drive and none of those would be my first choice... As suggested, I'd be looking at a Mondeo or 3 series for outright purchase or alternative brand on PCP.

[NickdeBug]

No probation to get through.

Didn't have an interview either come to think of it.

Company has just landed 12 million Euro investment so hopefully I am pretty safe.

Happy with car choices so really after advice on buying mechanism. Info offered has been very useful, so thanks.

Used buy seems to offer best flexibility so I will probably go that route for now.

Won't be a Mondeo though

[exelero]

OP in the meantime, you know that 120k for a Volvo D5 means that is just been run in?

[NickdeBug]

exelero said:

OP in the meantime, you know that 120k for a Volvo D5 means that is just been run in?

Yep, doing nothing is always an option and often a good one.

Having made the decision to change I am now just waiting for the next unexpected £400 garage bill. That really would feel like dead money.

[steve-5snwi]

we have 2 poorly Volvos at work, one threw its aux belt off and took the cambelt off with it, the other decided 6 litres of oil in 700 miles was acceptable. One is a 2.0 D5, the other 2.4 D5

[exelero]

2.0 D5 are you sure?

[JeremyH5]

Hang on a minute; you're worrying about a single potential £400 garage bill for the car you currently have and know about but are willing to pay up to £375 every month to change to a new car? Madness.

[steve-5snwi]

exelero said:

2.0 D5 are you sure?

D3

but it is a 2.0 5 cylinder

Edited by steve-5snwi on Thursday 15th June 23:13

[NickdeBug]

JeremyH5 said:

Hang on a minute; you're worrying about a single potential £400 garage bill for the car you currently have and know about but are willing to pay up to £375 every month to change to a new car? Madness.

Not really.

I am happy to pay a monthly amount to get a new vehicle - it will be more than covered by my mileage expense claim alone.

I simply said that it would be annoying to have to spend money on something that I am planning to move on.

Madness would be buying something that I don't really need, would not be suitable for the job and that I couldn't afford. Some tasteless sports car for example.

Thanks for your input though.

[rgw2012]

Presumably you have factored in that the mileage rate drops from 45p per mile to 25p per mile after the first 10k miles?

[NickdeBug]

rgw2012 said:

Presumably you have factored in that the mileage rate drops from 45p per mile to 25p per mile after the first 10k miles?

yup

Anticipated mileage - 20k per annum - same as my current commute

10000*0.45 = £4500
10000*0.25 = £2500

total - £7000

I understand that this is not taxable as it is an expense.

If I spend £360/month on payments, £180/month on fuel (50mpg), £30/month insurance = £6840/annum

payments include servicing and 1st year tax, so I just have 2nd/3rd year tax and some new boots to cover + GAP. Car allowance is £750/month before tax so this should be covered.

Yes I know I could carry on driving current car and pocket the difference.

The thing is, I am one of the fortunate few who work because they enjoy their job rather than because they need the money. Mortgage was paid off in my 30s after selling a flat that I bought for £40k in Wimbledon in 1992, no kids and earning enough to worry about Labour's proposed tax changes (although I actually agree with them). Never been into flashy purchases hence the car choices still being fairly conservative, but bearing in mind my wife spends about double this on her horses every month I feel that I have earned a treat

Edited by NickdeBug on Friday 16th June 09:52

[rgw2012]

Excellent, nice situation to be in OP. The only other "gotcha" that I've seen people fall foul of is that some companies pay a lower mileage rate if the employee is receving a company car allowance and will only pay the full HMRC rate if no allowance is received and they are using their privately owned car. I know you have it in your contract that HMRC rates are to be paid but make sure you check that there is no dilution of the rate on the basis of a car allowance being paid.

[NickdeBug]

thanks for the heads up

I did double check as the company is in the Eurozone and their govt mileage rates are a little lower (add up to £6080 for 20K miles) but I was told that UK rates would apply.

Audi have just called and offered the same deal for £330/month if I buy this month. I guess they have some big targets set!