Best way to buy a car

mapen

Hi

I've just taken a new job that means I will need to commute approx 25k miles per year.

I'm considering buying a new car and would like some advice on the most economic way of doing so eg buy a banger and run it into the ground (car must be reliable), purchase new vs lease hire etc etc. Deisel vs petrol.

My current car has finance outstanding against it and a balloon payment due at the end of the finance period. With the current milage I'm doing the car won't be worth the balloon payment!!! :eek:

Fuel is not an issue as I've been given a fuel card up to 2.5L engine. I'm not self employed so cannot recover tax (not that I'm aware of) or VAT.

emmell

Do you have a mileage limit on your current car, if you do be careful about exceeding it.
If you lease a new car you will have to check the prices with your annual mileage as I think it is more expensive the more miles you do.
Why don't you just keep your car and pay the balloon payment at the end of the term.
Also if you have been given a fuel card and the company are paying your fuel bills this is a benefit in kind and you will be taxed on it.
ML.

AdrianHi

With that kind of mileage you are quite dependant on a car for your income and your going to wear them out fast.
I wouldn't even think about an old banger as the frequency of trips to a garage when you covering 25K miles will "do your head in".
Think about it, at least 2 services a year, 1 MOT, probably 1 or 2 visits for tyres or brakes, odds are 1 visit for something other wear and tear repair. 5 or 6 trips a year which is on average every other month.

I'd suggest buying a 6-12 month old low mileage Mondeo/Vectra that's lost a big chunk of value from new, learn to haggle hard for best price, will "only" loose about £1500-£2000 in the next 12 months of it's life if you sell privately, put 1 year and 25,000 miles on it and move onto the next one.
I know people who do this who have proved it is no more costly and is in some cases cheaper than running the older car. Partly because the newer cars are more fuel efficient and that makes a enough of a difference on 25K miles a year.
Before anyone be-moans "depreciation expenses" do the sums. In this scenario you pay more depreciation but less on maintenance and fuel and it balances out.

Leasing will probably be too expensive as 25K is so far above the standard 10,000 miles they want you to be doing.

motorguy

AdrianHi wrote: »

With that kind of mileage you are quite dependant on a car for your income and your going to wear them out fast.
I wouldn't even think about an old banger as the frequency of trips to a garage when you covering 25K miles will "do your head in".
Think about it, at least 2 services a year, 1 MOT, probably 1 or 2 visits for tyres or brakes, odds are 1 visit for something other wear and tear repair. 5 or 6 trips a year which is on average every other month.

I'd suggest buying a 6-12 month old low mileage Mondeo/Vectra that's lost a big chunk of value from new, learn to haggle hard for best price, will "only" loose about £1500-£2000 in the next 12 months of it's life if you sell privately, put 1 year and 25,000 miles on it and move onto the next one.
I know people who do this who have proved it is no more costly and is in some cases cheaper than running the older car. Partly because the newer cars are more fuel efficient and that makes a enough of a difference on 25K miles a year.
Before anyone be-moans "depreciation expenses" do the sums. In this scenario you pay more depreciation but less on maintenance and fuel and it balances out.

Leasing will probably be too expensive as 25K is so far above the standard 10,000 miles they want you to be doing.

+1

Totally agree with you.