What will £450 a month get me

Honest John Back Room » Motoring discussion
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Tue 20 Jun 2006 23:59
What will £450 a month get me - PhilDS
I may be changing jobs soon which will see me saying goodbye to my current company car - 320d ES Touring. The new company doesn't offer a car just an allowance. I will have £450 a month to spend on a car excl. insurance. I drive around 30,000 miles a year which will include some business. I need a decent amount of practical space so an estate, large hatch or MPV would be ideal - car before the 320 was an Alhambra. Has to be diesel and have good performance and a reasonable spec.
What do you recommend? Personal Contract Hire or buy something with a loan? I have no deposit and can finance £15,000 over 3 years. PCH looks good as it can include maintenance but will be more limited in my choice. Trade Sales have Mondeo 2.2 ST TDCi's for around £14k with less than 10k on the clock.
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Wed 21 Jun 2006 10:35
What will £450 a month get me - Mutton Geoff
Although the car may need to last you 3 years under your arrangement, the loan need not. After all if you are buying outright, there will be some value left in the car at 3 years, especially if it's a Merc, BMW or Audi. Factor your loan over 4-5 years, then work on the numbers by assuming the car is worth half it's basic price (exclude any options) at 3 years. See if that leaves enough to pay off any outstanding loan and if the sums work. Do your own "PCP scheme" as personal lending is so cheap these days.

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Wed 21 Jun 2006 10:42
What will £450 a month get me - y2k+4
Must be something wrong with me here, but I suddenly thought Vauxhall Signum and FIAT Croma. Unbelievable 150 diesels. Economical, and I dare say you could get a VERY good deal on them and quite exclusive. That said, depreciation would be steep.

Sensible thought = Golf Plus?
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Wed 21 Jun 2006 11:55
What will £450 a month get me - Big Bad Dave
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Wed 21 Jun 2006 12:00
What will £450 a month get me - stevied
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Wed 21 Jun 2006 12:03
What will £450 a month get me - DP
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Wed 21 Jun 2006 12:13
What will £450 a month get me - T Lucas
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Wed 21 Jun 2006 12:47
What will £450 a month get me - artful dodger {P}
Your idea of buying a nearly new car seems to be your best bet as the initial steep depreciation has been avoided. You do not mention whether you have to have a car which is less than x years old or of a certain type for the car allowance. You may have some rules that your new company insists on.

My advice would be to arrange finance from a bank or building society as the rate should be keener than a car dealer. Then the car will technically be yours, so if you change jobs and then no longer need a personal car, you can dispose of it and settle any outstanding finance easily. With PCH this may not be possible, so check any terms carefully.


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Roger
I read frequently, but only post when I have something useful to say.
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