Advice on Leasing a car for work but keeping personal?

asoe209

Evening go a bit of a random question about leacing.

I have not long started a new position within my company which I have to travel to different sites. The company have issued me with a car allowance on top of May wage this works out roughly to around £250-300 after deductions.

Now the company policy says users have to have there cars within a 5 or 8 year range. I'm currently driving a 2005 vs polo with 50,000 on the clock.

I did not have any place to get rid of my car at this point as its in good running condition plus I'm not in a position to buy out right and I never really wanted to finance another car as I'm trying to clear my debts.

It's come up on a couple of occasions what I'm looking to do about my car so it seem the company is expecting a change at some point.

I have been cossidring leasing as an option mainly with the car allowance this would should cover the cost of the monthly payments. But also keeping my personal car as that's paid for. So purely using the lease car for work. And I would still have a car should the worst happen there is still a vehicle or let's say emergency cash.

So I wondered if any one has gone down this route before and how it's worked for them. And if I do this are there any sort of discounts or tax reliefs as the lease is just for work?

Moto2

TBH, I'd just carry on with your old one until someone mentioned something.
What sort sort of position would it leave you if you got a new car and they didn't keep you on?

asoe209

That would come down how my bills looked at that point.

I personally don't want to be locked into another finance position for 5 or so years. And all the while my car is in good running order there no reason to get rid of it.

I would say I'm at least a year for looking at getting a new car once bills are sorted.

WellKnownSid

How much finance is outstanding on the Polo?
What mileages do you expect to do - business and personal?
What form does the business usage take - just your travel or are you carrying other staff / clients?
What does the company handbook say about this car allowance?

asoe209

The polo is paid.
So far I'm averaging about 500 miles a month give or take.
It's mainly just travelling to different sites of work, not carry anything sometimes may take clients out not often.
I have not seen anything in the handbook. I need to re check.

asoe209

Personal about 100-300 max. I don't really drive on the weekends if I do its local and the odd trip here and there for weekend away etc.

WellKnownSid

Leasing could be a fairly cheap option given your low mileage, maybe try to find a 12-24 month deal rather than something longer term.

I can understand the sentiment about maintaining a newer car with clients - but a ten year old car kept maintained and clean is better than a two year old one treated like a rubbish bin. Take a close look at the official line, though, don't take the disapproving glances and comments as gospel...

TBH - if the Polo is in good nick, I'd just buy a personalised plate...

forgotmyname

Stick some private plates on it?

asoe209

If I'm honest my personal car is mechanically good, cosmetically it's not great I'm not comfortable using that with clients. But I don't want to rush and lose it just to get a car for work.

I'll need to get more info on leasing to see what's around as my knowledge is limited on the matter.

WellKnownSid

Leasing is a cheap way into a new car if you don't want a particular car, and even better if you don't do high miles. Manufacturers will happily discount cars by 50% in order to shift volumes and especially beat other brands - just not to retail customers. To keep pricing opaque - these are all business deals where the car ends up as a rental or lease vehicle. Half of all cars are sold this way in the UK, It's where all the nearly new stock comes from...

Quod erat you get cracking deals. Downside - you may get a car cheap - but you are responsible for the whole of the car. So it might only cost you £99 a month but it's still a £20k car which needs to be maintained and returned with everything intact.

Expensive German cars are best avoided - look good on paper until you need a service or a new heated / massaged / dimming door mirror for £800. If you're the sort of person who looks after a car, this won't be an issue.

Maintenance deals are rarely worth it. If you get a 24 month deal and you do 10k a year - you may not need anything more than an oil change - no tyres, brakes, anything - before handing back. Plan ahead and research service intervals, etc.

Get gap insurance - because your fully comp policy probably won't provide for a new replacement for a vehicle which you are not the owner / keeper of. Don't buy gap from the leasing co for £400 - buy off the internet for £80. Some insurers can be funny about insuring cars which are leased - you may need to spell it out to them... as call centre staff aren't well trained in my experience.

Just a few pointers.

loskie

simpson skoda have some good lease deals and will part ex your old car. seems no benefit in keeping it to me,
http://www.simpsonsskoda.co.uk/new-car-offers/yeti-outdoor/