Car to do 50k/year in
- Thread starter Abyss
- Start date
How do you manage that? Company scheme?
Your budget may be better than you think - it depends how your company operates its car scheme(s).
Are they saying you can have £7000 p.a. + diesel at cost to run your own car? Or is the fuel paid on a mileage basis?
If the former, that equals about £12,000 p.a. assuming (say) 50,000 business miles at £1.00 per gallon based on 50 m.p.g. The tax-free rates approved by HM Revenue & Customs are 40p for the first 10,000 miles and 25p thereafter. That equals £14,000 p.a. tax free. You can claim the difference of £2000 from HMRC as a tax deduction at your marginal rate(s) of Income Tax.
That should give you a MINIMUM monthly budget of just ~ £1050.00 per MONTH to fund everything - which leaves ~ £600 per month after the diesel costs. Even more, if the company are more generous with mileage alloewances.
If it were me, I would be looking for a low mileage 18 month old diesel and change it every year while still in warranty.
Are they saying you can have £7000 p.a. + diesel at cost to run your own car? Or is the fuel paid on a mileage basis?
If the former, that equals about £12,000 p.a. assuming (say) 50,000 business miles at £1.00 per gallon based on 50 m.p.g. The tax-free rates approved by HM Revenue & Customs are 40p for the first 10,000 miles and 25p thereafter. That equals £14,000 p.a. tax free. You can claim the difference of £2000 from HMRC as a tax deduction at your marginal rate(s) of Income Tax.
That should give you a MINIMUM monthly budget of just ~ £1050.00 per MONTH to fund everything - which leaves ~ £600 per month after the diesel costs. Even more, if the company are more generous with mileage alloewances.
If it were me, I would be looking for a low mileage 18 month old diesel and change it every year while still in warranty.
That only applies to company cars not personal cars.
It would depend on the car - but anything over 100K miles can be more difficult to sell. BMW/Audi/Mercs only make good money with low mileages.
I reckon an 18 month old car with (say) 10,000 miles will still have lost over 30% of its value. So at 60,000 miles and 2.5 years it's not looking so bad.
Again that would depend on the individual.
Personally, I would probably have a Mondeo type diesel and spend the balance on something more to my liking which would do a lot less miles privately.
Thanks for all your advice. To answer a few of your questions:
I work for a major retailer managing the development of new stores, visiting numerous sites on a weekly basis. I do around 30k/year business milage and 20k/year private/commute to the office (250 mile round trip).
I currently have the equivilant of a pool car and claim 16p per mile for business milage. I am however taxed based on the company car tax and pay a personal contribution. The overall cost per year for everything (including fuel for both business and private milage) is around £2k/year.
If I decide to run my own car I can claim 35p per mile for the first 10k, and 15p per mile after that. As these figures are below HMRC reccommended figures I can offset the difference against tax.
Taking all this into account for me to be no worse off I need to be able to run my own car for £7k per year. This includes:
o Depreciation
o Servicing
o MOT
o Tax
o etc.
It excludes
o all Fuel (this is included in the calculations).
In terms of purchase price I am not too fussed as long as it fits within the 7k per annum sum.
I work for a major retailer managing the development of new stores, visiting numerous sites on a weekly basis. I do around 30k/year business milage and 20k/year private/commute to the office (250 mile round trip).
I currently have the equivilant of a pool car and claim 16p per mile for business milage. I am however taxed based on the company car tax and pay a personal contribution. The overall cost per year for everything (including fuel for both business and private milage) is around £2k/year.
If I decide to run my own car I can claim 35p per mile for the first 10k, and 15p per mile after that. As these figures are below HMRC reccommended figures I can offset the difference against tax.
Taking all this into account for me to be no worse off I need to be able to run my own car for £7k per year. This includes:
o Depreciation
o Servicing
o MOT
o Tax
o etc.
It excludes
o all Fuel (this is included in the calculations).
In terms of purchase price I am not too fussed as long as it fits within the 7k per annum sum.
How about something like this?
http://pistonheads.com/sales/969738.htm
Or this
http://pistonheads.com/sales/1030819.htm
I assume you will still get 3/4k back for it with an extra 100k on the clock?
http://pistonheads.com/sales/969738.htm
Or this
http://pistonheads.com/sales/1030819.htm
I assume you will still get 3/4k back for it with an extra 100k on the clock?
Would the 4 services a year not eat into my £7k/year quite rapidly?
Also the 19mpg would cripple me doing 50k/year, it would cost me nearly £7k a year, leaving nothing to cover depreciation and running costs.
Interesting thought. If depreciation is £8k over 2 years, that leaves me £3k/year to service/mot/tax/repair. This should all come in budget other than if something major goes wrong.
Last edited:
haha, that wasn't a serious suggestion
my serious suggestions were posted earlier. big volvo diesels or the like
Soldato
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If I were doing this I'd pick up a Mondeo ST TDCi for £8-£10k and run it for 2 years. You'll easily get £3k back for it with 130k on the clock and they are relatively cheap to run. Its a much nicer long distance car than an Octavia vRS - more comfortable and more refined. I've had both, although my vRS is a 2.0T - love the engine, but overall if I had both outside for a 500 mile trip I'd take the Mondeo every time.
Soldato
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Why are people recommending sportyish cars with stiffer suspension when the OP will be doing serious miles, surely softer and more comfortable cars are a more sensible choice..
i dunno, im doing about 24k a year atm in a sports model. other than really crap roads its more than ok.
Soldato
- Joined
- 18 Oct 2002
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- 4,898
Stiff suspension isn't uncomfortable if you get the suspension design and damping right. Some cars are much better than others - the Focus and Mondeo ST models run stiff springs with relatively little compromise to the ride and comfort over the ordinary models, in fact I found my ST rode better than the Zetec I had before.
VAG cars with sports suspension are a bit crashy at times.