£250 a month, fully serviced @20k miles a year will get your company 1.6 focus zetec or megane authentique petrol models.
You of course will be financially worse off.
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>>You of course will be financially worse off.
Yes, clearly it might not work out.
However we would have one car we can sell plus only have depreciation etc on one car not two.
I also meant to say that I am thinking of a smaller car so the wife's car is the family car, hence I wonder what would the cost be for a new Clio DCi 106 in reasonable spec or something similar.
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If it helps, we secured a Grand Scenic 1.6. 48 months/full maintenance for £238 pcm and no deposit on a lease syle plan.
My firm withdrew the supplied car scheme but introduced a new provider who could secure these deals with certain manufacturers. Believe that some Renault dealers can come close to these prices if pushed.
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Hello Ian,
What annual mileage is this based on? also who are the lease company?
Thanks.
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Mileage is only 12k per annum but negotiable - advice I received is that it's better to undercook than overcook estimated mileage.
Our company is using Alphabet (a BMW subsidiary). We are told that some of these offers are "special exclusives" but no harm in trying.
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undercook than overcook estimated mileage.
FInd out first how much per mile they will add as a final penalty payment. Add to this any excess refurbishment charge for extra worn interior bits. Overdoing miles on a lease scheme is a minefield
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Clio DCi 106
you are best not leasing brand new to the market cars. The leasing co has to guestimate depreciation and maint costs, so they err on the high side for lease payments.
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You'd have though that RF, but I've got one of the new Leons on order, I got a very good quote for final payment and maintainence. Too good infact to miss, that's why its on order.
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Anyone have any figures on the new Clio DCi 106 or similar, 20k p/a?
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Anyone have any figures on the new Clio DCi 106 or similar, 20k p/a?
The company we use have.
Car: RENAULT, CLIO DIESEL HATCHBACK, 1.5 dCi 106 Dynamique 3dr [AC], 2005
Extras: Pearl - Monaco blue
Contract: 36 months at 20000 miles per annum
Total: £366.72
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WOW thats high for a clio.
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Yeah I think my deal on the Leon is even better now.
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It is a bit high, but we used to contract BMW 3 Series / Audi A4 type cars. You see them for £299/mth deals but we were paying £600/mth due to the mileage and including maint.
Like I said to Cheddar in my longer reply, his current arrangement isn't really being paying him enough now, so anything else is going to look expensive.
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Like I said to Cheddar in my longer reply, his current arrangement isn't really being paying him enough now, so anything else is going to look expensive.
Thanks Bill, yes if I had a new car and were talking about the difference between 30 or 60k over three years then 40p/mile is not enough however my car has done nearly 100k so a few extra miles make little difference, that being said I will want to change it at some point.
I am in effect about £300 a month better of if I do 1000 miles/month minus increased servicing, tyres etc. However I cannot depreciate, run, insure, tax etc, say, a £12k car for £300 a month.
Therefore as a familiy we might be better off letting the company use the £300/month to provide a car and make a saving on the basis of only having one car to depreciate, run etc ourselves, not two.
Regards.
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I am in effect about £300 a month better of if I do 1000 miles/month minus increased servicing, tyres etc. However I cannot depreciate, run, insure, tax etc, say, a £12k car for £300 a month.
Very true. The problem is that neither can your company. Depends what your relationship is like with them, but any alternative is going to cost them more. Don't forget they'll also have to insure it, pay for business fuel and pay employers NI contributions on its value.
Therefore as a familiy we might be better off letting the company use the £300/month to provide a car and make a saving on the basis of only having one car to depreciate, run etc ourselves, not two.
If your employer will go for that then it's a no-brainer for you.
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Have a look at www.cashorcar.com and make some comparisons.
Sites like www.contracthireandleasing.com list loads of contract hire offers but, of course, they're all basd on 10K/yr and no maint.
I reckon anything you do that's different to the current arrangement is going to cost your company more money. That's because, for such regular use, 40p/mile isn't really enough. If you do 12K business miles and similar private mileage, then over 3 years you're going to murder the value of any car, and your payment doesn't really take that into account.
If you're happy with a low CO2 and low P11D value car, then you have a company car for £50/mth tax, even as a 40% tax payer, which makes it a no-brainer. This doesn't include fuel benefit which isn't worth having now unless you do huge private mileage. Bear in mind there's a significant 'peace of mind' benefit of having a company car (someone else bears all the risk of ownership) that, in my opinion, is worth around £100/mth.
The comparison becomes more finely balanced as you choose higher CO2 and more expensive cars.
Using your own car, it's more 'normal' if you do regular business mileage to receive an allowance (which is taxable at your normal rate) at a similar level to the lease cost (inc maintenance) of the sort of car that you'd be given, and a lower mileage payment, typically 15p. Assuming you're a 40% tax payer you'd get a tax rebate of 10p for the first 10K miles and 4p for mileage over that.
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On our "exclusive offers" the best price for new Clio DCi 106 3dr Dynamique AC 20k pa - 36 months is £275.87 pcm + £99 initial payment. This is inclusive of maintenance.
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Hi Ian, Many thanks, might want a 5 door though that is good info.
Regards.
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On our "exclusive offers" the best price for new Clio DCi 106 3dr Dynamique AC 20k pa - 36 months is £275.87 pcm + £99 initial payment. This is inclusive of maintenance.
That's a PCP though, isn't it?
My wild guess for business contract hire (inc maint) would be £250/mth + VAT.
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Yeah, it's a PCP style deal inclusive of VAT. I think this would be a good deal considering the mileage.
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So what are the tax implications, both personal and business, of PCP v a business contract?
Regards.
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Things have moved on, extrapolating my points in the first post I wonder if you guys who have ready access to business lease quotes could give me some idea of the following based on 30k p/a maintained:
Focus estate Zetec 2.0 TDCi metallic
Mondeo 5 door Zetec 2.2 TDCi metallic
Just to get an idea, and not a Ford bias it is just that there is a lot to be said for having a Ford dealer with 1/2 mile of both of your office locations.
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Our company provider - PCP style - costs, including metallic, maintenance, VAT are as below. These are based on 36 month deal and 25k pa (would n't let me go to 30k):
Focus estate Zetec 2.0 TDCi metallic "climate": GBP 355.77 pcm
Mondeo 5 door Zetec 2.2 TDCi metallic: GBP 368.31 pcm
Seems a bit steep to me but could be the mileage.
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Thanks Ian, that does not seem to bad to me and 25k p/a would cover it, and that is VAT inc so the actual cost to the company would be nearer £300/month.
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