8k car for work

emetic · 16 Jun 2011 at 13:46

I've just got a new job and am in search of a car. I will be doing an estimated 10-15k business miles a year (mostly a 300 mile round trip to London on a weekly basis) and probably around 3-5k of personal miles.

I get £3k car allowance + should be claiming back around £3k+ in fuel tax relief on top of my fuel cost.

A friend suggested I lease a car however I'm not sure I want to be tied into a lease for 36 months, should I move jobs in that time or worse I will be stuck with the lease. I'm thinking buying something second hand with a loan from the bank, that way should I want to get rid I could hopefully sell the car and cover the loan and at the end of the 3 year loan I would at least be left with something retaining some value rather than just handing back a car with 45k miles on it.

Hopefully my budget will be around 8k, I could possibly stretch it a little to say 10k if it was well worth spending the extra. Apologies if my thinking seems a little naive however i've not been in this position before with regards to travel + work.

Any advice on this would be much appreciated !

Scrutinize · 16 Jun 2011 at 13:52

Ford Mondeo or Mazda 6 seems to feel the right sort of car here, no need for diesel and you could go for a petrol 2.0i. You may get away with something focus sized.

If your job is not 100% ongoing and you may change, don't tie yourself up with leases.

Above everything, as you need it for business, make sure you get something that will be reliable and have minimal capacity to throw up big bills or be off the road a lot.

Participant · 16 Jun 2011 at 13:54

Probably a MkIV Mondeo, Titanium X which is the top but one trim level, e.g. http://www.pistonheads.com/sales/2679880.htm if you end up stretching to £10k. That has the 2.5L 220PS petrol engine. If that's too much then 2.0 as above, there are a few different power levels in 2.0 guise.

£3k per year car allowance and you can write the cost off over three years, ideal imo. I would certainly buy second hand in your scenario...from your wording it sounds like your company don't offer lease cars themselves anyway?

emetic · 16 Jun 2011 at 14:05

Yes there's no company car alternative if I did lease it would be a personal lease contract. A mondeo is something I had thought about, a friend suggested I go to the car auctions with him and get a 3 series but i'm not sure if this would be a smart move or not, i've never bought a car through auction before. I'm pretty sure I will get better advice from motors anyway

Participant · 16 Jun 2011 at 14:09

An £8k 3 series from auctions...rather you than me. You might be lucky if you know what you're doing.

Scrutinize · 16 Jun 2011 at 14:14

Robbie G said:
Probably a MkIV Mondeo, Titanium X which is the top but one trim level, e.g. http://www.pistonheads.com/sales/2679880.htm if you end up stretching to £10k. That has the 2.5L 220PS petrol engine. If that's too much then 2.0 as above, there are a few different power levels in 2.0 guise.

£3k per year car allowance and you can right the cost off over three years, ideal imo. I would certainly buy second hand in your scenario...from your wording it sounds like your company don't offer lease cars themselves anyway?

don't forget 3k car allowance will be pre tax so depending on 20/40% tax bracket you won't see all of it.

emetic said:
Yes there's no company car alternative if I did lease it would be a personal lease contract. A mondeo is something I had thought about, a friend suggested I go to the car auctions with him and get a 3 series but i'm not sure if this would be a smart move or not, i've never bought a car through auction before. I'm pretty sure I will get better advice from motors anyway

I wouldn't take the risk on a auction 3 series given what you need it for and the car you are likely to get in budget (assuming you want a new shape).

Django x2 · 16 Jun 2011 at 14:51

mrk1@1 said:
don't forget 3k car allowance will be pre tax so depending on 20/40% tax bracket you won't see all of it.

I wouldn't take the risk on a auction 3 series given what you need it for and the car you are likely to get in budget (assuming you want a new shape).

Still £2400 a year assuming 20% tax. If it's like mine, the car allowance is not made as part of overall salary so is always taxed at 20%

/\ndy · 17 Jun 2011 at 00:12

Golf MK5 GT?

Nippy, economical as well.

Tute · 17 Jun 2011 at 00:19

/\ndy said:
Golf MK5 GT?

Nippy, economical as well.

Not a bad shout.

Octavia vRS might be worth a shout as well.

emetic · 17 Jun 2011 at 10:37

So my shortlist so far:

Mondeo MkIV
Mazda 6
Golf Mk 5 GT
Octavia vRS

If I was to stretch to 3 series territory what sort of money would I be looking at ? My head is saying the Mondeo should be the cheapest to run and maintain but then i'm 26 and I just think I should have something a little more "fun".

Peerzy · 17 Jun 2011 at 10:42

£8k is a bit no mans land for a 3 series, it'll get you an early high mileage e9x or a mint e46, but be aware of how old the design is.

I'd get the Mondeo personally.

emetic · 17 Jun 2011 at 10:43

yeah i've realised this and I could stretch upto 12k but it would have to be spot on. Would I be in better territory ?

EddScott · 17 Jun 2011 at 11:51

There are plan afoot where I work that might see me spending more time on the road and looking at similar priced cars.

Octavia VRS was one of them. I also quite like 1 series - I know many don't but I quite like them. A client/friend has a car dealers and he has a 4 door 05 plate 120D M Sport which he might let go for £8K.

Tute · 17 Jun 2011 at 17:10

Trouble with the 3 series is that it's not the kind of car you want to "stretch" to as you may end up with a shabby one. Either way it also tends to throw large bills more than the Ford/VAG suggestions.