Resolution Ideas - new car or not?

CeePeeBee

Hi Guys,

Right here is the background to my request...Essentially I run through easily 30,000 miles per year (business and personal) and I've currently got a 5 year old Alfa I've had for 18 months with 90,000 miles on the clock. It's currently not cost me a lot but the next service is the best part of £800 at the dealer, and it's only a matter of time before things start to go wrong.

Here are my options:
1) Run this into the ground until I can't afford it and then dump it and get another user car and hope I get the same luck in terms of reliability.
2) Go PCP with somebody....however whilst the monthlies will be fine, the options at the end/before the end of the term of the PCP are not great:

• Hand it back and pay the extortionate mileage rates after the term
• Avoid the mileage charge by trading it in against another new car, but I'll get hit with less valuation due to the high mileage
• or, pay the rest of the car off which at 24months for example will mean paying around £8k (for a decent hatchback) for a car which is 2 years old and done almost 80k mileage

I currently do get car allowance, but not a lot at all so I'm not factoring that in. I could go with a company car but the car allowance would then disappear as would 90% of my mileage claim.

I can afford almost any option, but I'm trying not to be frivolous with money and actually be sensible so any ideas anyone had would be greatly received.

Thanks in advance.

andrewf75

Is there not a third option - trade it in for a newer replacement (whatever you can afford), but buy something outright

I'd do that.

parking_question_chap

What exactly is the reason for the £800 cost. Seems excessive ......

Option 4, find another garage.

Double_V

If you cant afford go for PCP.
Worry and stress free.
Any problem you can take it to the dealer, they will give you courtesy car, whilst they work on yours.
And mileage don't count unless you hand it back and walk away.
Otherwise don't worry about them.

CeePeeBee

DoubleV - you're right, however the most likely course of action is that I'll end up trading in my car on PCP for another new one before the end of the term as most people do. Therefore, whilst the mileage isn't an issue in terms of paying for the additional miles, they will take the mileage into account when trading in as deposit for a new car and as such I'm being stung anyway.

Andrew...I think that is the other option yes...something I'm looking at. Get something a bit newer, still in warranty and try and buy outright.

PArking....it's the "big" service requiring a cambelt change from a dealer. I could find another garage, and I think I might.

jimjames

CeePeeBee wrote: »

I could go with a company car but the car allowance would then disappear as would 90% of my mileage claim.

This would seem to be the best option? Any reason why it's not one of the ones you're considering?
Fully funded car that you only have to pay tax on?


You might lose mileage claim but that's money out the door anyway to pay for your car. No worries on service cost or unexpected bills or depreciation.

WellKnownSid

What's the rough split business to personal?
Are you getting the full whack per mile expenses under 10k / over 10k?
What mpg does your Alfa give?
What class / style of car are you ideally looking for?

Personally, I cheat by running an efficient lease car for business miles and the bulk of the personal miles. My other (own) cars take up the remainder - with the added benefit that they aren't being run into the ground / cheap insurance (low miles) / etc.

If you are thinking PCP, why aren't you opting for a 30,000 mile annual limit from the outset? You won't get an extortionate bill at the end, but it won't be as expensive as straight finance either with at least some residual value plus you may get dealer contributions / better APR / other goodies thrown in etc. As with leasing - the PCP calculations will vary wildly according to make / model at that mileage - so you may need to shop around.

CeePeeBee

Morning - thanks for your input guys. Decided to take it in for it's 90k service...costing my £690 at a dealer (only 100quid more expensive than local garage and I know them). Looks like I've opted for the status quo and running it into the ground until it starts costing lots!

Touch wood...not much been wrong with it over the 18 months I've had it..just older so services expensive.

Fingers crossed eh.

WllKnownSid - to answer your question, I do about 1000-1500 a week business mileage...the rest is personal.

I was thinking PCP, but the offers on the table were okay, but only at 5k annual mileage...which put me in a tough spot decision-wise at the end of the lease.

saverbuyer

CeePeeBee wrote: »

Morning - thanks for your input guys. Decided to take it in for it's 90k service...costing my £690 at a dealer (only 100quid more expensive than local garage and I know them). Looks like I've opted for the status quo and running it into the ground until it starts costing lots!

Touch wood...not much been wrong with it over the 18 months I've had it..just older so services expensive.

Fingers crossed eh.

WllKnownSid - to answer your question, I do about 1000-1500 a week business mileage...the rest is personal.

I was thinking PCP, but the offers on the table were okay, but only at 5k annual mileage...which put me in a tough spot decision-wise at the end of the lease.

52 x 1000 = 52,000
52 x 1500 = 78,000


You must be doing way more than 30,000 a year?

jimjames

I still can't understand why you wouldn't take a company car for that mileage. Fixed cost and no surprises for faults with a brand new car every few years and none of your own money tied up.

gonzo127

saverbuyer wrote: »

52 x 1000 = 52,000
52 x 1500 = 78,000


You must be doing way more than 30,000 a year?

probably meant per month, so between 12 and 18k miles a year