Should I take this job?

Lmh71365

Been offered a job at Mercedes.

Our outgoings each month (including £785 childcare) come to £3130 per month.

My OH earns £20,000 a year which is about £1500 after tax.

The Mercedes job is £20,000 basic salary with commission on top, on target earnings of £40,000. Actual monthly wage will vary (obviously).

But the catch is I'm going to be paying £4-500 for the car that comes with it (including insurance) and obviously an expected to drive a new Merc and nothing else.

What would you do?

makeyourdaddyproud

Well, given the figures it would seem on lean months (those where no cars have been sold), you'd still be shy of your monthly outgoings by £500+ per month.

So, assuming the commission on one sold car exceeds the £500 (the point at which you would break even), you are still living hand to mouth.

Obviously you cannot rely on the OTE, as that is the target earnings, which are nearly always ambitious. This would see you only £20k gross (or £1500 - £500 car) or £1000 per month better off.

In the absence of an alternative job with better pay, I would take it. At least you can buy time and an up to date CV. YMMV

Takeaway_Addict

Lmh71365 wrote: »

Been offered a job at Mercedes.

Our outgoings each month (including £785 childcare) come to £3130 per month.

My OH earns £20,000 a year which is about £1500 after tax.

The Mercedes job is £20,000 basic salary with commission on top, on target earnings of £40,000. Actual monthly wage will vary (obviously).

But the catch is I'm going to be paying £4-500 for the car that comes with it (including insurance) and obviously an expected to drive a new Merc and nothing else.

What would you do?

Have they actually said you have to drive a merc?

Lmh71365

Takeaway_Addict wrote: »

Have they actually said you have to drive a merc?

He did, but I haven't seen the company policy or contract yet. I know they have to park on site and we use them for company use, so I can't see my BMW being deemed appropriate. (BMW is my OH's anyway so I can't really use it).

My mum has suggested I can have her E-Class and just pay the insurance, but it's an 11 plate and I'm not sure if they have to be under two years old (again, heavily implied).

To be truthful, I am not 100% sure what the actual company policy is. I didn't object during my interview and ask further questions, I just got told that's how the car scheme works and I would be expected to do it.

Working for Hyundai previously, I didn't have to have a Hyundai as long as I didn't park it on site, they let me use demonstrators for company use.

Lmh71365

Having spoken to other employees, there is absolutely nobody there who hasn't opted in to the scheme, so they have no advice. It is "the done and expected thing", apparently. Presumably a bit like Next expect you to wear their latest clothes.

Takeaway_Addict

I get why but surprised they don't heavily subsidise it?

Just checking, it is 4-500 a month correct?

I guess, by the sounds of it it is a first job back for a while so Mercedes would be seen as quite a prestigious company on the CV and if you suck it up for 18 months or so you can move on to something better?

makeyourdaddyproud

Mercs are good cars, so what's the problem?

Either way you will need a car for the travel to the job.

Takeaway_Addict

makeyourdaddyproud wrote: »

Mercs are good cars, so what's the problem?

Either way you will need a car for the travel to the job.

if its £4-500 a year then it seems a no brainer to do, but £4-500 a month is a lot.

Lmh71365

Takeaway_Addict wrote: »

I get why but surprised they don't heavily subsidise it?

Just checking, it is 4-500 a month correct?

I guess, by the sounds of it it is a first job back for a while so Mercedes would be seen as quite a prestigious company on the CV and if you suck it up for 18 months or so you can move on to something better?

They offer an enormous subsidy (40%) and use something to do with national insurance as a deposit so you pay no deposit.

He said there's a whole bunch of cars in the range and they all work out close to £300 a month, some less, some more.
Then I have to pay insurance on top of it, which is (estimating) £100-200 a month. I pay £100 for my other car, so it's got to be more.

I checked the company car tax for Mercs if I didn't opt in to the lease scheme and the cheapest one they've got is a very basic A-Class which is just shy of £300 a month (and over if I hit the 40% tax bracket). So it is a really good deal, I just don't want to pay it!

makeyourdaddyproud

Wouldn't lease purchase of a "nearly new" one be a better deal. At least you would have ownership than paying "dead money" indefinitely? Just a thought.

Lmh71365

makeyourdaddyproud wrote: »

Wouldn't lease purchase of a "nearly new" one be a better deal. At least you would have ownership than paying "dead money" indefinitely? Just a thought.

No because 40% off a new one and deposit paid = cheaper than a used one?