Downsizing

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Thu 27 Sep 2001 15:30
Downsizing - Paul Robinson
Had a difficult question from a client this morning - This guy has in many ways been ahead of his time, several years ago he handed back his company car and has since had various older large quality cars (BMW/Honda/Audi) charging the Company mileage for the business use of his private car.

In view of the forthcoming reduction in mileage allowance from 63p to 40p his
question was ?What sort of smaller more economical car can I downsize to, that is still appropriate for me as MD of an engineering company?? He went on to say ?obviously it would be a false economy if I switch to something that leaves customers and staff wondering if the business is in difficulties?

What advice would backroomers have given?

PS In the past he has not spent more than £6k on his cars
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Thu 27 Sep 2001 15:56
Re: Downsizing - Richard Hall
He ought to be looking at big turbodiesels - BMW 5 series, Audi A6 or Mercedes E class. Should get 40mpg plus on a long run, but all the visual presence of their petrol equivalents, and there are a fair few around now so they shouldn't be that hard to find. Either that or an LPG conversion - you lose some boot space and a bit of performance, but you can't ignore the appeal of halving your fuel costs. You can run an old shape (classic, will never really go out of fashion) Range Rover with an LPG conversion and see the same sort of fuel bills as if you had a petrol Mondeo, but the reliability probably won't be as good.
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Thu 27 Sep 2001 18:17
Re: Downsizing - Michael
The new system from 2002 is proposing a flat rate of 40p for 10000 miles then 25p thereafter. Unlike the present system, there is not a lower rate for small engined car sand higher rate for big engined cars. Given this, his main concern should be total ownership costs (including depreciation and fuel consumption). He may not have to change from his current policy other than to select a more economic model (eg diesel).
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Fri 28 Sep 2001 11:03
Re: Downsizing - Alwyn
Perhaps you should warn your client that USA research indicates an extra 46,000 RTA deaths in the years since downsizing became fashionable there.
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Fri 28 Sep 2001 11:12
Re: Downsizing - Alwyn
Further to the above post, the report is here....

www.vehiclechoice.org/cafe/usa1.html
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