How much to run a car?

Hagar

Hagar

Hagar

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I have been insulated from the costs of running a car since 1991 when I started with company cars. The last four years I have had a leased Honda Civic 2200 CDTi. The lease is up in May. I have a choice whether to go back to a company car and pay £1200 pa in tax or to buy the lease car and take a cash allowance.

I will get £6k pa allowance which after tax and NI will be about £3k. I expect to lose about £1k per annum in depreciation on a purchase price of £3800. Insurance I have budgeted £500, (I am 59)

The car has currently 84k on the clock with FSH. I do 24k miles pa. I plan on keeping it for two more years.

So excluding fuel as that is generally covered by business miles is £1.5k enough to cover , tax, MOT, tyres, servicing, AA recovery, other costs and repairs? My calculations suggest it is about
 
The lease car option is, by your figures, £4200 a year more expensive. So, I guess your question is can you run the Civic, including depreciation, for less than the £4200 a year you'd effectively pay for the lease car.

IMHO the answer to this is a resounding 'Yes'.
 
The company car option is the fully funded, benefit in kind sort which I am trying to avoid as I may partially retire in a couple of years and need to get back into owning my own car.

You are saying that I get £3k and avoid paying £1.2k to the taxman hence the £4.2k pa.
I understand that.

I will purchase the existing lease car from savings and write off £1k pa in depreciation. Running costs will come from the remaining £2k pa. After 2 years if I sell the car for > £1.8k and have money left from the £2k pa I should be quids in. That is my thoughts.
 
Your logic sounds quite reasonable to me. On the plus side you know the history of the car in question as it's you that's been running it etc.
 
Are you certain on the purchase price? As that is very, very low for a 4 year old civic even with the mileage. For comparison I paid 7k about 7 months ago for a 57 plate car on 60k when its going trade rate was about 5.75 to 6k, whilst mine wasnt the cheapest car around it was far from the most expensive.

If you can get the car at that price it sounds like a bit of a no brainer to me I would imagine you will far exceed the 1.8k calculated resale, closer to double that even with 120k, I can't find any cdti regardless of age or mileage for under 4k at the moment, would imagine trade price on your car would be closer to 4.5 or 5k at the moment

On a side note, does your civic make a bit of a whine in 1st and second? Like a belt noise (but not the auaux belt). About 3 quarters of all the cdti cars I have listened to do it, but nobody seems to know what it is
 
rodenal said:
Are you certain on the purchase price? As that is very, very low for a 4 year old civic even with the mileage. For comparison I paid 7k about 7 months ago for a 57 plate car on 60k when its going trade rate was about 5.75 to 6k, whilst mine wasnt the cheapest car around it was far from the most expensive.

On a side note, does your civic make a bit of a whine in 1st and second? Like a belt noise (but not the auaux belt). About 3 quarters of all the cdti cars I have listened to do it, but nobody seems to know what it is
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The price is the end payment on the lease (contract purchase) PCP so it is not market rate, More like 90% trade value estimated at the start of the agreement.

In answer to your question, no, so far luckily no gearbox noise or belt noise. There is a bit of an induction roar on heavy acceleration, but I like that.
 
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nkata said:
The price is the end payment on the lease (contract purchase) PCP so it is not market rate, More like 90% trade value estimated at the start of the agreement.

In answer to your question, no, so far luckily no gearbox noise or belt noise. There is a bit of an induction roar on heavy acceleration, but I like that.
Click to expand...

I would by the car if its only £3800. It is a steal. If you wanted to buy one of those right now private/froma dealer you would be looking at 6k-6.5k probably.

If you were to sell it privately in 2 years time, i doubt you would lose a huge amount.
 
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