Help… £500 per month to spend. What performance car?

[NickMiller82]

Hi everyone, I’m hoping I might be able to get some guidance/advice on this forum.

For the past 10 years I’ve had a company car. Which has meant typical executive type diesels. I’m lucky to have had nice Audi’s BMW’s etc but for a guy who loves performance cars and hot hatches it has been a little boring!

My company have now said I can move to a monthly car allowance if I wish at £600 per month. I can also stump up a deposit of around £10k. Taking into account tax, insurance etc I would look at a monthly budget on a car of approx £500 pm.

£500 per month it seems, opens up lots and lots of options and to be honest I’m a little confused to say the least!

I do around 20k miles per annum which means I need to consider depreciation but also mpg. I appreciate mpg will be far more costly than my current diesel, but I will need to avoid the bigger engines. C63’s, mustangs 5 litre engines etc, as that would push mpg and my monthly fuel outlay too high for commutes.

I also have 2 kids so that rules out 2 seaters.

My initial search has brought up the following:

Golf R - used but potentially new (appreciate there will be a wait)
Merc CLA/GLA/A45 pre latest a models
RS3 used and I’ve actually seen some competitive lease deals for to 2022 model. But again, a long wait I’m sure!
BMW M2 and M2 comp
BMW M3 used
BMW M4 and comp used
BMW m140/240 used
New shape M135/M235
I believe the new 2022 M240 is also due out soon but not sure what costs would be like.

This is what my initial search brought up, but I’m sure there are more options out there.

Has anyone ever searched in this price range and got any guidance as to what might be the best option considering my situation and budget? Also best to lease, PCP etc. I’m so out of the loop!

Any help or suggestions would be appreciated!

Thanks for reading.

[Dohnut]

C7 RS6?

That or F80 M3 comp would probably be my choice.

Edited by Dohnut on Saturday 13th November 12:41

[covmutley]

With that mileage I think I'd be looking at something about 3 years old, approved used and bought via a personal loan.

3 litre bmw should still give up to 40mpg on a long journey. I had a jag xe s and really enjoyed it and that has the 8 speed zf gearbox too so was also good on a longer journey for the power on offer.

C43 could be another good one?

[scoey1001]

340i?

[Hackney]

Dohnut said:

C7 RS6?

That or F80 M3 comp would probably be my choice.

covmutley said:

With that mileage I think I'd be looking at something about 3 years old, approved used and bought via a personal loan.

3 litre bmw should still give up to 40mpg on a long journey. I had a jag xe s and really enjoyed it and that has the 8 speed zf gearbox too so was also good on a longer journey for the power on offer.

C43 could be another good one?

Check with your company before you go for something older than 3 yrs. Some companies insist on certain things: rear seats / doors, a boot and, often, a maximum age. Last company I worked at with a proper policy meant I had to get rid of my 8yr old Saab that was in immaculate condition, with a private plate you'd never have known.

The plus side was I ended up with a brand new Golf R estate (a cancelled order and a better deal than used one at the time)

[cerb4.5lee]

I'm obviously biased, but I've been really happy with my F82 M4. It does the boring stuff well, but you can also change a few settings and it turns it into a very thrilling drive as well.

[Teebs]

£600 pre or post tax?

£600 gross doesn't look so pretty after deductions, sadly.

[ZX10R NIN]

I'd be going for the best M3 I could find.

[NickMiller82]

Teebs said:

£600 pre or post tax?

£600 gross doesn't look so pretty after deductions, sadly.

Thanks for all the suggestions everyone. It’s really helpful.

In answer to the above. £600 pre tax.

I’m trying to get my head around how much extra tax I pay on my current company car vs. How much I will net from the allowance but I’m struggling to work it all out. Does anyone know of a simple to use website? I’ve tried a few but not exactly sure I understand it all!

[Teebs]

NickMiller82 said:

Thanks for all the suggestions everyone. It’s really helpful.

In answer to the above. £600 pre tax.

I’m trying to get my head around how much extra tax I pay on my current company car vs. How much I will net from the allowance but I’m struggling to work it all out. Does anyone know of a simple to use website? I’ve tried a few but not exactly sure I understand it all!

Comcar is pretty good.

[georgeyboy12345]

In terms of financing, I'd go for whatever method gives the lowest APR. The whole tax thingy could be a show-stopper too, I must admit I don't really understand it either as I have never had a company car!

Bear in mind a performance petrol car is going to cost at least another £1100 or so a year in fuel compared to a diesel at the kinds of mileages you are doing.

What about this BMW 440i GranCoupe?
https://www.autotrader.co.uk/car-details/202106143...

If you need the additional mpg, there is always the diesel 435d GC xDrive
https://www.autotrader.co.uk/car-details/202108306...

or this BMW 335d xDrive
https://www.autotrader.co.uk/car-details/202110028...


One last diesel - Audi A6 3.0 Bi TDI Quattro
https://www.autotrader.co.uk/car-details/202108035...


Audi S4
https://www.autotrader.co.uk/car-details/202110268...


Mercedes C43 AMG
https://www.autotrader.co.uk/car-details/202109067...


Maserati Ghibli S
https://www.autotrader.co.uk/car-details/202110299...


Jaguar XE S
https://www.autotrader.co.uk/car-details/202109287...


Volvo V60 T6 Polestar Estate
https://www.autotrader.co.uk/car-details/202111109...


Let's stretch the budget a bit

Kia Stinger GT
https://www.autotrader.co.uk/car-details/202111089...


Vauxhall VXR8
https://www.autotrader.co.uk/car-details/202108176...


Mercedes C63 AMG
https://www.autotrader.co.uk/car-details/202110088...


BMW M3
https://www.autotrader.co.uk/car-details/202110048...

[Mark83]

cerb4.5lee said:

I'm obviously biased, but I've been really happy with my F82 M4. It does the boring stuff well, but you can also change a few settings and it turns it into a very thrilling drive as well.

Also an M4 owner but if you have two children, I'd not get the M4. I rarely carry passengers but when I do, it's a faff. Throw in child seats and it's more difficult. Front seats can clash with the sun visors if not in the correct position so requires moving backwards and forwards to give a decent gap to climb in and out. Doors also open wider as they're bigger so car parks are a faff too. M3, yes. M4, no.

You'll have the same problem with the M2s and the rear is smaller.

[cerb4.5lee]

Mark83 said:

Also an M4 owner but if you have two children, I'd not get the M4. I rarely carry passengers but when I do, it's a faff. Throw in child seats and it's more difficult. Front seats can clash with the sun visors if not in the correct position so requires moving backwards and forwards to give a decent gap to climb in and out. Doors also open wider as they're bigger so car parks are a faff too. M3, yes. M4, no.

You'll have the same problem with the M2s and the rear is smaller.

I've got two kids(13 and 5) so I definitely know exactly what you are saying. I prefer 2 door Coupes and 2+2's though, so I'm happy to put up with the extra hassle. I certainly wouldn't blame anyone for going for the easier option of the M3 with its 4 doors(3 seats in the rear/smaller opening doors) though for sure.

[off_again]

Personally, I would be leaning towards a BMW but know someone who had the supercharger XE and loved it - great blend of performance and comfort. Oh and the Stinger GT is very good, if a little anonymous.

But someone mentioned a C63. Had one and it’s a piece of automotive theater. Fabulous and always interesting. But, test drive one before jumping. The ride is terrible in comparison to some of the other offerings - bar the M3 / 4 Comp models. You have to be sure you can live with it first.

[NickMiller82]

Thanks everyone, some solid options and great advice thank you.

I’ve just used a car tax calculator and it’s thrown out a bik amount of £12310.

Can anyone with knowledge on this subject confirm if I have this right. I’m at 40% tax payer.

BIK £12310 x 40% = £4924 / 12 months = £410 per month

Car allowance £600 less 40% tax = £360 per month.

So technically, I’d be net £770 per month and as long as total costs were the same I’d be no worse off?

[mfmman]

You will be deducted National Insurance from your car allowance as well, 3.25% at higher rate for 22/23. Also you might be above the Child Benefit High Income Charge threshold already but if not then car allowance counts against that as well

[dmsims]

BIK is dependent on fuel type, for a diiseasel it us rightly crippling at around 30%

That’s about £5k a year in tax!

Edited by dmsims on Sunday 14th November 07:21

[NickMiller82]

dmsims said:

BIK is dependent on fuel type, for a diiseasel it us rightly crippling at around 30%

That’s about £5k a year in tax!

Edited by dmsims on Sunday 14th November 07:21

Yes, my car is listed at 32%

[dmsims]

NickMiller82 said:

Yes, my car is listed at 32%

You must love throwing money away

[LayZ]

Get an EV on the company scheme and something actually fun to drive for the weekend e.g. old Boxster S, se7en, Z4 for 5 grand or so (no depreciation). You will save thousands in tax.

For just daily company type use having something fast is no fun and will become boring. Everything feels the same at 53mph on a wet motorway, only more frustrating when you have a > 300hp car.