Just like to get the board's thoughts on the following as a plan.
I currently drive a 52 plate Skoda Octavia Elegance diesel (110 bhp) estate which is provided by my employer through a lease scheme. I contribute £33 a month to the lease cost plus have the associated tax implications of having a company car.
The lease expires at the end of the year and I am considering taking the £5,000 offered to me as an alternative to participating in the lease scheme because I think that I could do better with the money and the lease scheme runs for 4 years, which is a bit of a long tie in.
I would ideally like a new shape Subaru Legacy estate but I think that I won't be able to afford one until the end of 2007 (gives me a bit of time to save up towards one) so I can opt out at the end of the year, spend about £7000 to buy something to fill the gap (like another Octavia Estate of roughly the same vintage as the one I'll be giving back) until I can afford a Legacy. Hopefully by then there will be a decent amount to choose from at semi-reasonable prices.
While we're on the subject - anyone got anything to say on running a new shape Legacy ? I know there's been a few threads on general Subaru ownership, is there anyone who's owned one of these specifically. I'd probably go for the 2 litre engine.
Thanks
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Soupytwist !
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Shame they dropped the 2.5 as this is probably the best compromise - still available in Outback form. The 2.0 lacks low down torque. The 3.0 is amazing but can you live with the comsumption?
Cracking cars. What do you want to know?
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Great cars but your fuel bill will probably close to double compared to the Octavia.
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I realise that I'd spend more on fuel - according to my calculations I'll be spending about £500 a year more with a 2 litre Legacy - that's on the basis of 22k miles per year, a 2p difference per litre between petrol and diesel and MPG figures of 36.7 and 48 (the former Subaru's official combined figure and the latter my calculations on the Skoda). Realistically, that's probably optimistic.
However, the combination of no company car tax, no £33 a month towards the lease and the cash alternative to the company car means that I can cover most of the increased fuel cost before I think about the lower tax implications and cash alternative. Of course by choosing a Subaru I cannot take into account the cheaper purchase cost of a petrol model compared to the diesel equivalent.
At the end of this year I won't be in a position to buy a Legacy but during 2007 as certain financial commitments come to an end I will be. I think that I'm just looking for some contributions on whether it's a good idea to opt out. I don't think that my company's lease is particularly generous but I'm wary of taking the leap into sorting it out myself. I'd lke an estate car that's interesting to drive, a bit different, practical and reliable. If I can achieve all of that without putting myself in penury then great. Otherwise I'll just have to buy myself an Octavia estate.
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Soupytwist !
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If you use finance to a lesser or greater extent for your new car, then just make sure you protect yourself in case the job goes pear shaped, leaving you stuck with payments on a car that might not be approriate for your new circumstances.
Have a look at getting the car on a personal contract hire, with redundancy and resignation protection. It's not the cheapest way of doing it, but it does take away much of the risk, and you might be able to get the car sooner rather than having to wait a year.
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I can't see you getting 36.7 mpg on the Suburu - 26.7 would be more like it.
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I think that the 2.5 is still available in the early versions of the new shape. The twin pipe exhaust puts me off - how much are they to replace? Perhaps I shouldn't be thinking of Subaru ownership at all if that sort of thing concerns me!
I'd like to get a handle on how long tyres last, servicing costs, that sort of thing. There's some of that kind of info in the forum archives, I'll do a search.
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Soupytwist !
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You can get an idea by looking at a personal leasing site (like the RAC Leasing, for example) and looking at a quote including maintenance for the annual mileage that you'll be doing.
OK, they load the cost a bit, to be on the safe side, but it won't be a million miles out. You might get a shock.
A Subaru dealer will be able to tell you the service intervals and costs.
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You would pay tax and NI on your £5000, plus you would have maintenance costs, that (I assume) you don't have now.
I would gladly take an Octavia for £33 per month, it's peanuts really.
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OK - Legacy Tourer 2.5 SE Just over 1 year old.
1st service (free labour) £40
12,000 mile service - £140
Body check at year 1 - £130 (this is then bi-annual)
Economy - 32 mpg over 16,000 miles - I do a fair bit of motorway & fast A road. Best for a gentle motorway run is around 35mpg, worst for town/back road thrash is about 25mpg.
Tyres - still fair bit of tread after 16,000. No idea what the exhaust would cost to replace - not cheap I'm sure!
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I think you?ll be alright, you won?t pocket much extra cash if any but you should cover your costs and very importantly you get the car you really want. IMO the three key points are that you?ll be buying a used car so the allowance you need to make for depreciation will be a fair bit less than with a new model. Secondly, someone will pay a fair price for it when you?ve finished with it and lastly nearly half your business mileage will be at the IR 40p per mile allowance.
Make sure you are realistic about service costs ? you?ll be nudging 100,000 if you buy one with 30,000 miles and run it for 3 years, quite a few tyres and if you?re taking out a loan or PCP consider redundancy protection unless you?re confident in keeping your job or finding another if the worst happens.
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I don't actually do much business mileage - my main journey is 34 miles each way to work and back along dual carriageway mainly. Then there's a few 3 hour each way journies to see the inlaws, a couple more to see other family and a family holiday once a year. So, I can't claim much back.
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Soupytwist !
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in response to OP, why not offer to buy the Octavia you're currently driving to use until you can afford the Legacy? After all, you know where it's been, plus you can make sure it's serviced / re-tyred while under lease!!!
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Yes, I had thought about that. I'll have to look up when it had new tyres on and see if I anticipate getting another set on before the end of the year. If I can I think that will play a part in whether I buy it.
The Octavia itself is not a bad car by any means, it's pretty much ideal for my needs but I do fancy a Subaru. Perhaps I should buy an old shape Legacy to see how I get on with one before taking the more expensive plunge.
Thanks for the replies everyone.
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Soupytwist !
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