Buy car from employer?

catt_2

My employer changes the car fleet every 3 years.

An opportunity is coming up to buy a 3 1/2 year old diesel.

It has acceptable mileage. It will need its first MOT and a service.

I'm told I'll be given a fixed price and there can be no negotiating on price and no service prior, etc. The fixed price is the depreciation formula used by the company. If I wait a month the price will drop another £200 which sounds good, as I have a car to sell to fund the purchase.

I want to check I'm being offered a good deal so I did a valuation search on the Autotrader website. I heard this is unrealistic compared to Glass Guide. What is the best source for comparing prices for 3 year old cars? Any tips on how to proceed would be appreciated. I also need to sell a car worth £3000 max and wondered whether Ebay or Autotrader was the best route.

jimbo_the_jetset

Parkers guide for prices, not sure you can look at prices for 3 year old cars online but nip into a newsagent and browse the hard copy. Or just do a search on Autotrader/Fish4/Local paper to see what price similar spec cars are being sold for.

I think the local paper is often best for selling a car and a note in the window is free and doesn't do any harm.

Hintza

You can use Glass' guide via this link

http://www.vauxhall.co.uk/vx/finance/valueyourcar.do

Couple of points:- if its 3.5 years old it will have been MOT'd. Take the cost of the service into account when you decide whether the price is fair. If it's a good price it will probably be a good buy but if the price is just OK the way car prices are going it might be worth passing.

Are you sure they will hold it whilst you sell yours? Stick yours on Autotrader but DO NOT price it too high, many owners have an over inflated opinion of the value of their own cars. If it doesn't sell then EBay might be worth a shot.

One other thing to bear in mind is how secure is your job or personal circumstances? The way the economy is going a little prudence might be in order.

catt_2

Jimbo

I've just checked Parkers and the prices are coming up the same as AutoTrader's. I'm looking at the lowest price category as the company won't do the service that's due.

hewhoisnotintheknow

find out who the previous driver(s) was and ask peoples opinions on how they drive and look after cars. Fleet cars in my previous places of work have been driven so harshly its unreal!

catt_2

Hinza

Thanks for the link. It comes up with a lower price than AutoTrader.

You're right, the company won't hold the car while I sell mine. It's just that it could take an extra month for staff to make their new vehicle choice and take delivery. Every extra month's delay results in the price droping by an extra £200 according to the company's formula. But I don't think it will delay by more than a month.

We are trying to do our sums in the light of the worstening economy and bearing in mind rising fuel prices. If we went ahead, I would be going over from petrol to diesel. I'd replace:

1796cyl., 120ps, Insurance 13, Petrol, 49.3mpg, 99/V plate.
with:
1995cyl., 114Bhp, Insurance 7, Diesel, 48.7mpg, 05 plate.

Those manufacturers' fuel figures are laughably unreliable. We know that the replacement car achieves almost twice the mileage out of a full tank! Having said that, my annual mileage is low.

The replacement would be part funded by the sale of current car but would need some money on top.

Also, about to get an insurance quote.

What does a full service cost?
And what to do about stone chippings to bodywork?

Mmmm....lots to consider and weigh up!

catt_2

We know who the previous driver was. We have been passengers and he drives smoothly and looks after the car.

In its favour, it has done less than 70,000 miles. That's the lowest mileage in the fleet.

It has no bodywork damage except minor stone chippings which I think I could match in myself, though the paint is metallic. It's had one minor bodywork repair.

It has main dealer FSH except it is due the next service.

I'd be only the second owner on Dvla if we went ahead.

Hintza

From what you say it sounds like a good buy and I imagine when they sell there has to be some margin in it for a dealer to make a good turn. Sounds like your major problem will be tieing in the sale of yours.

Good luck

catt_2

Hinza

Just to clarify, I'd be buying the car from my employer/company but they are not a car dealer. The car on offer to me is a car in the company's sales reps fleet cars. I don't knnow whether there is any margin or profit for my employer when selling to me. Normally my employer returns the 3 year old cars to the dealership they were bought from. I don't know what price my employer would get for it that way. As you say, if my employer goes the dealer route, then the dealer has to get rid of it and still presumably make a margin.

Perhaps someone posting here who is in the car trade knows.

catt_2

Just learned that there will be VAT on top of the price!

jonathon

if its 3 1/2 years old and has not had an mot does that mean its been on the road for 6 months without an mot