its proportional so on a regular basis the amount under £35k will be taxed at 22%. Its only the amount above £35k thats taxed at 40% so the car allowance technically wont be taxed at 40%.
So my regular, accounted for cost for the vehicle allowance will be c.£350 per month.
>>If I were you it would be that 3 year old TDCi - otherwise it will be costing you money.>> I said it will cost me money to get something different.
Look, this post was a what car, not a what cost. I'm a big boy now and i can add up and be aware of what costs what. I also know how the tax works. I drive for pleasure, and that will include work, as painful as that sounds. This will also be a car i have to use at weekend so its got to be a bit nicer than the norm, and if i ever end up in a rep box like a TDCI, laguna, vectra etc, i'll shoot myself through realising that my motoring life has become such a non event of boringness.
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Rightio, I have to add my two penniworth, and b4 all the sensible people tell me off, I will tell you that I am nearly 50, car mad, and very irresponsible, I am going to answer the question as asked.... what car???
BMW M3 what else if u can afford go 4 it, drove one in germany recently (and I have a beemer 330d) and have to say most fun I have had out of bed for years!!!!
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Ok for wiw, on choice of car
drive in wet/snow?
Forget any rwd car.
M3 is super idea in south of UK. In North or hilly areas (Peak District) recipe for sudden death in winter or brown trousers...imo
(and yes I have driven one:-)
madf
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I find this thread really interesting...
I was in a similar place this summer - I am self employed so have no car scheme, but was fed up driving the 'sensible and reliable' Vauxhall Cavalier I had had for two years on an interim basis (bought it as a stop gap, and it would not die), so passed it on to a friend once it had 12 months MOT.
I wanted to spend about 12k, have some fun, not have painful fuel consumption, be 'a bit different' and really fun to drive. Now own a Porsche 968 - not for you AK76 (not enough toys!), but it presses all the right buttons for me. Was it a prudent move? Possibly not, but for the same money I could have got a nearly new TDCi Mondeo, or a slightly older exec mobile. In the case of the former, I have traded off depreciation for running costs; in the case of the latter, I could of had a lot of BMW / Audi for the money, but could have purchased a money pit. And it wasn't a porsche, which is what I really wanted.
Having said all that, I am clear that I could haemorrage quite a bit on my car, but for the 12k miles I do a year, when it goes well (and touch wood, it hasn't missed a beat thus far) it is a real pleasure to drive, sufficient practical (two kids in back plus some luggage space), sufficient parsimonious on the fuel (30mpg on Optimax) that although a rep-mobile would be a sensible choice, I am only passing this way once....
Chose what you fancy, just make sure you have your eyes open... Those suggesting more sensible cars are right in many ways, but it is your decision.
And of the cars you have chosen, I'd have a 330d (or even a late 320d).
Enjoy it
Jono
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Thanks for all those who posted.
Based on the fact that people who went and enjoyed their cars and suggested something a bit different dont regret it, it reassures me i may not be so mental to get something different.
Will keep you updated.
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>>if i ever end up in a rep box like a TDCI, laguna, vectra etc, i'll shoot myself
That is your right, and was allowed for in the opening sentence of my post! It's your money, you can do what you like with it. I just think that your budgeting is lacking in intellectual rigour.
>its proportional so on a regular basis the amount under £35k >will be taxed at 22%. Its only the amount above £35k thats >taxed at 40% so the car allowance technically wont be taxed at 40%.
No! You miss the point. You fall into a popular trap and appear not to understand the marginal tax rate on your extra income, which (if my scenario is correct and from your statements it appears to be although we don't have much information on which to go) is 40%. If you didn't get the car allowance you would run no risk of 40% tax, therefore the car allowance is taxed at a marginal rate of 40%.
>Look, this post was a what car, not a what cost
It was actually a 'what car' for 5k pre-tax income, i.e. 3k p.a., and the consensus was that you couldn't do any of them.
Once you made it clear that in fact you had no budget in mind, the field becomes wide open.
Anyway, good luck & do what you want (you will anyway!) Don't get angry with me, I'm only trying to look at it differently.
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In fact, here is an annual budget for an M3 bought for £10,000. Let's say that you run it for three years, after which it is worth £4,000.:
850....Insurance
300....3/4 of a set of tyres p.a.
350....major service
175....minor service
300....towards exhausts, brake discs, sundry repairs
2000...depreciation
185....tax
140....AA
700....interest on 10k bank loan at 7% (if you're lucky)
That's costing you over £5,000pa - and you told us you only have £3,000 pa to pay for it.
Fair enough, do what you will - you will anyway. But don't ask for advice on running a posh car on a car allowance of 5k pa if that's not the question you are asking!
What about running a MK II Jaguar. You can buy one for 15k. Or an MGB. Or a big American car. Or a W123 MB coupe. Probably more affordable than your current swanky modern suggestions as the depreciation is less of a killer. Volvos, Mercs, Alfas, Subarus, Jags, Audis have incredibly painful depreciation.
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No i didnt. Re-read it. I said i have an allowance and then re-iterated a few posts later stating that i would pay maintenance and tax myself.
So Mapmaker, that wasnt the question i was asking. I was asking what the forum might run for a company car that is a little different. Not how much can i get for £5k p/a.
Also what have depreciation figures got to do with running a car within a budget when all i said is i would like depreciation to be better than a rep mobile. So taking that out of the equation as it wasnt even part of it leaves an annual cost of -- ooh £3,000 so i can run an M3(by your own figures) for £3k p.a!
My suggestions were based on used cars where the majority of the depreciation has already been accounted for.
Regards your suggestions i figure the cost of the time needed to upkeep them would be more than £5k p/a.....
On a serious note does anyone use depreciation when deciding what car to buy within a certain budget? I figured that most people would look at the purchasing and service costs, along with sundrys and probably would be aware what level of depreciation they would encounter but wouldnt break it down to a regular figure. I'm not fussed myself as i cant help depreciation, and figure i'd suffer a lot more with some more run of the mill vehicle.
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I always consider depreciation, but I think 60K miles over 3 years is going to slaughter any value regardless even in a used prestige car. I think that with a run of the mill car the used value will be low enough that the value (not the percentage) of the depreciation will be less. ie 60% loss on a 7K mundano is better than 50% on a 12K bmw. Different cars plateau in the value curve at different points you just need to work out when is the best period of ownership.
It seems to me that model changes are getting more frequent, which hits older model used values more.
I usually have a quick look on autotrader to see what values are for a model a couple of years older and higher mileage than the car I am considering. It isnt scientific but gives me a feel - and I hope that there will be some financial compensation for the driving enjoyment (lack of) of the volvo diesel I have at the moment (needed the space).
I would say that if you are looking at minor exotica like m3 etc. then have a cash pool in reserve, they can always deliver surprises and the warranty might not be all that you think it is.
do your research and enjoy.
In your position I would think about changing cars at the two year point. It still seems that taking a car over 100K has a big hit on resale. I would either buy at the 100K point and keep to 160K taking the risk of reliability or buy at 70K and sell at 90K every year. An m3 should always be reasonably easy to sell under 100K.
all imho, ymmv, dyor, etc
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>>I said i have an allowance and then re-iterated a few posts later stating that i would pay maintenance and tax myself.
I obviously completely misunderstood you, sorry! But when you're given an extra 5k to run a car then you're paying ALL the costs yourself. That was what I thought you meant. And it's not a company car! It's your car.
I apologise unreservedly for the 'intellectual rigour' comment. 'Not the way I would do it' might be better. Problem is that I'm an accountant, and my budget for a car looks like the one I posted. If I were to ignore any of it then I would be deceiving myself.
I'm serious about the MB W123 coupe. www.mercseller.com/popup.cfm?p_n=346921&p_i=346921
Anyway, please tell me what you think your pre-tax £5,000 is supposed to cover? I am becoming less and less clear about this. If you take out depreciation and financing, then that leaves you an awful lot of tax, insurance and servicing and you probably CAN easily run an 'affordable' classic on 3k pa - and suffer much less depreciation.
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>>I just think that yourbudgeting is lacking in intellectual rigour.
Sorry its these sort of comments that can offend. I think its more a matter of different thinking. You couldnt care about motoring, its more the cost of it, so you obviously look at things differently. I think your viewpoint is narrow minded more than a lack of intellectual rigour
>>If you didn't get the car allowance you would run no risk of40% tax, therefore the car allowance is taxed at a marginal rate of 40%.
To clarify my car allowance will not suffer 40% tax. >Look, this post was a what car, not a what cost It was actually a 'what car' for 5k pre-tax income, i.e. 3k p.a., and the consensus was that you couldn't do any of them. Once you made it clear that in fact you had no budget in mind, the field becomes wide open.
Well as i mentioned cars from say £7k to £14k you would be right its fairly wide open.Anyway, good luck & do what you want (you will anyway!) Don't get angry with me, I'm only trying to look at it differently.
There is different and then theres argumentative.
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Bak to cars - do what Nick said - second hand Legacy, pref a tourer - at least the 2.5
OK as an owner I'm biased, but you will have huge fun!
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Worth looking at for sure - thanks!
Whats the mpg like for the legacy's?
I only really ever considered a BSK model but not really great for a lot of mileage!
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I also have a Legacy - an '04 2.5 Tourer - and they really are a hoot to drive - nothing like one might expect from a largeish estate car.
Thirsty, though. I never get more than 28mpg from mine, although it is an auto and this is mainly on A roads / rural B roads (27.9 mgg today driving to Norfolk from Central London).
The manual feels much quicker - to be honest, the auto box isn't the best, but my knees can't take a manual for long.
Might be a bit tight within your budget, but worth a test drive, if only for the experience.
Davros
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average 32 mpg from my manual 05 Tourer 2.5SE - mixed motorway & back roads. 35+ on a long steady run, 25-28 round town.
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