My wife's company car,a 2002 (02) Mondeo Ghia X 2.0 Auto Petrol is due for renewal. She has decided that for tax purposes it would be financially advantageous to take an increase in salary and buy her own car. She has the option to purchase the Mondeo which was leased through Godfrey Davis. It has approx 65k on the clock, full service history, leather all the toys and is finished in Black metallic. It has been and continues to be relatively problem free though there are a few scratches and stone chips and the alloys have a few dings commensurate with the mileage and use it gets. The car will be supplied with a 12 month warranty and they are asking for £4968.00 and have offered finance at 4.9% APR if we need it.
First thoughts are that this is reasonable and it will get my wife on the first rung of car ownership. Any views from the backroom would be much appreciated.
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PS it is a 5 door hatchback!
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www.whatcar.co.uk says:
Dealer £4,795
Private £4,145
Part exchange £3,895
Trade £3,645
These are common cars, and this one hasn't finished depreciating. In a couple of years it won't be worth much, and being a petrol may not be that easy to sell.
I wouldn't want it, but if I did, I wouldn't be inclined to pay more than 4k for it.
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It does seem on the high side, but you have the huge (over buying any other second-hand car) advantage that you know the cars complete history (assuming your wife had it from new). Plus you haven?t got the hugely painful and time-consuming task of traipsing around dealers trying to find a suitable car / deal.
Also, with a half-decent car allowance she'll have paid for it by the time the 12 mth w'tee runs out, she'll then have the use of a car for its running costs only.
Keep in mind that opting out isn?t just about the money ? there?s a significant ?peace of mind? benefit in having a company car that I reckon is worth at least £100/mth.
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...and having just checked out Autotrader, it looks like whatcar a bit on the low side on their valuations. Worth closer to 4.5k?
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The car will be supplied with a 12 month warranty and they are asking for £4968.00
What a strange valuation?
I would guess it is some calculation to recoup their costs rather than the open market valuation.
Have a look at Autotrader (on the left) to see the range of asking prices of similar Mondeos.
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WhatCar? does all kinds of weird mileage adjustments that don't work.
I'd say this car is slightly above trade price but significantly below retail by about £800 or so. Given the cheap finance (are you sure the finance is APR, not flat rate - there's a huge difference) and the warranty value, I'd say it looks like a good deal although not so good she should snap it up to sell it on if she's not happy with the car.
As long as she's happy to continue driving the car for another year or two and this is how much money she'd spend anwyay, it looks like a good deal. (Although there can't be any harm in chipping a few hundred quid anyway, can there?)
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This is what the computer generated figures are for a 52 plate, same spec, on Auctionview just now.....
CAP Value
New: £20190
Ret: £6275
Cln: £4375
Avg: £4000
Blw: £3600
Glass Value
New: £20265
Ret: £5719
Trd: £4220
If it helps, you're paying around 15% over what they'd get for it & saving their 'marketing' & disposal costs.
VB
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What is th tax and MOT position. You want 12 months' MOT and some tax.. or some biggish bills due soon..
I'd offer a little less say £250 and see the reaction...
madf
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Surely the right company car (i.e. diesel, low co2) would be much more eonomical than running your own vehicle for company use?
By the time you take into account all the running costs and the loan repayments, interest, future depreciation and repairs etc.
I would rather pay the tax than a loan, insurance, road tax, running costs on your own car. Something like a Focus diesel, Accord Diesel would only cost around £1200 per year (40%) or £800 per year (22%) in tax if you pay for your private fuel.
Are the company offering a large pay increase?
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Glass's online values it as follows (part-ex prices);
Ford Mondeo Ghia X 2.0 Petrol 5-door Hatchback
4+Overdrive Automatic Front Wheel Drive
Year: 2002 02
Mileage: 65,000
Part-exchange Price:
Excellent condition:
£5270
Average condition:
£4720
Below average condition:
£4140
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Surely the right company car (i.e. diesel, low co2) would be much more eonomical than running your own vehicle for company use? By the time you take into account all the running costs and the loan repayments, interest, future depreciation and repairs etc. I would rather pay the tax than a loan, insurance, road tax, running costs on your own car. Something like a Focus diesel, Accord Diesel would only cost around £1200 per year (40%) or £800 per year (22%) in tax if you pay for your private fuel. Are the company offering a large pay increase?
It all depends on the deal, and there's a surprisingly large variety of circumstances. In my companies case it was a no-brainer financially - they really wanted us out of company cars and offered big allowances, plus good business mileage rates. Several empoyees bought 2 smaller cars (one for wifey).
I opted out too, but I'm not thrilled about it - bashing up and down the motorway in my own car is not something I'm enjoying. And unexpected things occur that are quite expensive - a dented door in a car park becomes a complete disaster.
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Yes, it is good value, you have had it from new, you know the history, it is warrantied, I would jump at it.
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£18,788was £18,891Details
£22,578was £23,132Details
£10,936was £11,264Details
£19,115was £19,286Details
