To do it properly you should really include loss of income on the initial outlay. If you didn't have a car the money could be earning interest.
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L\'escargot.
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Finance: £438
Insurance: £58
Maintenance: £55
Fuel: £150
Road tax: £10
So all in all a rather staggering £711. Having said that, the fiinance costs will go away after 4 years, and I expect the car to last a lot longer than that, so it's not quite as painful as it seems.
Still a bit shocking though, and should serve as a warning to anyone who leases a car based on circumstances that aren't quite finalised. I've got an amazing deal for what I needed then. Shame it's not what I need now, and also rather a shame that the broker I used was less than accurate about both my ability to change lease terms mid-lease (move to longer lease on lower mileage), and my ability to get a settlement figure. Never again.
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Some of these figures are shocking, why do people do it? Almost like having a second mortgage.
Buy second hand and smile :-)
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I can answer that one, for me at least.
At the time, a new car made sense for what I needed. I was going to be doing 35k a year, and needed a car that would be utterly reliable apart from routine servicing. At that mileage, buying new or newish doesn't make a lot of difference to monthly costs, as if you buy at 50k miles, you need to pay the smaller sum off quicker before the car turns into a shed, so you don't really save. With CR diesels, you also have the nagging worry that the previous owner got rid after a slight mis-fuelling, or skimped on the oil changes etc.
I got a large estate as my boss/colleague was convinced that we needed one to transport thte kit we?re using around the place. We don?t, as it happens, very annoying as a new Golf would have been £190 a month less, and would have done 10 mpg more.
Had I continued to have to drive the above miles, then the car would have been a bargain, the perfect choice, and would have had its costs covered by mileage.
As it is, I?m actually stuck in a bit of a s od of a situation. I'm going to start a new thread to continue my story, as I'd quite like people's opinions as to what my options are...
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TVM, I pray that one day I will get a company car. I just need to get lots more experience, a recognised accredited qualification and I will be driving a car on someone elses expense. Amazing!
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As someone else said, there's no such thing as a free lunch. You will be paying for your company car some way or another. I know of a company that gives out a car but uses this as a method of not paying a competitive salary.
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"Some of these figures are shocking, why do people do it? Almost like having a second mortgage."
Yeah it frightens me, I impose a one month's salary limit and pay cash when I buy, that way it's not so heart-breaking if I crash it / break it / lose it in a poker game. I have leased expensive cars in the past when I had different priorities so I would never criticise but second hand and a good night's sleep suits me better.
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I track costs per mile VERY carefully using a spreadsheet, sad but true!
The Porsche is a 87 944 & over 18 months has cost me 26 pence per mile. In that 18 months it's done around 33K miles.
The previous Alfa 156 JTD SW 2000, did 61K miles in 22 months & cost me 33PPM
Worst ever was a Mondeo Ghia X 99 brought ex-Ford irect & sold after 11 months & that worked to £1.36 PM
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Car lease: £139
Insurance: £45
Tax: zero
Depreciation: zero
Petrol: £45 a month
Repairs: zero, exception being any major damages upon return.
Not bad value.
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1994 Peugeot 306 1.9TD
Fuel: £120 a month averaging about 1500-1600 miles per month but the 40p per mile I get for work use more than covers that. Got 500 miles last week on a £40 fill.
Insurance: £30 per month
Tax: £14 per month
Servicing and repairs: Prob about £30 per month totted up, but is difficult to predict what's going to go wrong next!
Depreciation £38 per month
Martin
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In my last job, before I was given a car allowance, all my annual motoring (save for petrol) was paid for - and more - by booking myself on a couple of courses a year that were far enough North for the mileage (at 40p per mile, or whatever) to pay for my annual running costs.
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In light of what I discovered about running even my old banger, ive decided to sell it and just run my Suzuki Carry as my sole transport.
I dont NEED the car, its just useful and since ive worked out that my van and car are swallowing HALF my income, I think its time to put my sensible hat on and start saving for this road charging thats on the way!
It will increase my servicing needs on the van slightly, but its only adding about 3k to my annual mileage per year, which will amount to about £10 a month extra for servicing.
My vans insurance also covers me for nearly double the annual mileage I currently do, so I wont need to adjust it.
It will also mean I can cancel my membership to the AA and get a refund on my car insurance, so should get some money back aswell.
Its been a very useful exercise for me, thats for sure.
Just out of interest, those who have company cars - surely you are simply swapping wages for a car allowance, so infact are taking a pay cut by having a company car, no?
I always thought this was how it worked.
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i suppose you got to take into account running costs as a percentage of your net income. My boss used to lose 50k by changing his bentley's every 6 months, but when your worth 150 million it doesnt really matter. Imagine the depreciation on this lot he owns, all bought brand new 1 rolls royce phantom (in black looks like an undertakers car!), range rover vogue cost 66k with all the bits, 1 bentley gt, 2 nobles and a sl 55 amg.
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Avensis 2.2 D4-D
PCP - £300
Fuel - £130
Tax - £135pa so 11.25
Servicing - quoted £430 for 30k miles (3 services), would take me 18 months, so £23.89 per month
Insurance - £30
Total £495.14 for avg 1666 miles = 29.72ppm excluding tyres and incidentals.
Never worked out the pence per mile before, it's actually a fair bit better than I would have expected.
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>>Total £495.14 for avg 1666 miles = 29.72ppm excluding tyres and incidentals.
You can't exclude these that's part of the running costs!
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>>Total £495.14 for avg 1666 miles = 29.72ppm excluding tyres and incidentals. You can't exclude these that's part of the running costs!
Ok, but hardly significant and not so easy to budget for. Tyres, call it £85 per tyre, would estimate needing no more than 6 over 60k miles (4 front, 2 rear), so that's another 0.85p per mile. Incidentals can't be budgeted for in advance, but allowing another £510 for brakes and wiper blades would add another 0.85p per mile.
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