Buy another car to avoid mileage charge on lease

kmb500

My lease is ending at the start of May and I'm almost at the mileage limit. I reckon I will be ~3500 miles over the limit by the time the car goes back.

3500 miles over = £438 charge

I'm facing enough charges with handing the car back as it is and would like to spend as little as possible.

I will be buying a car in April/May anyway so does it make any sense to just get the next car early?

Having two cars on the go for more than a very brief period seems strange to me - and I'm aware there will be tax & potentially insurance to consider.

I'm not sure how to weigh things up to be honest.

forgotmyname

Dont forget yout insurance will have zero no claims if its in use on the current car. Will it actually save you £438? unlikely.

Depreciation on the new car is going to be more than that, plus the 2nd lot of insurance.

AdrianC

kmb500 wrote: »

My lease is ending at the start of May and I'm almost at the mileage limit. I reckon I will be ~3500 miles over the limit by the time the car goes back.

3500 miles over = £438 charge

12.5p/mile?

Well, it's money you've saved by not having a higher-mileage lease... Has your usage increased markedly over the term? If so, then perhaps it'll be cheapest to look into closing the lease down early.

I'm facing enough charges with handing the car back as it is

How come? Is it because it's in poor condition?

and would like to spend as little as possible.

Look into paying yourself to repair whatever's going to cause you to face the penalty charges before it goes back. It may well be that the penalties are cheaper, all things considered.

I will be buying a car in April/May anyway so does it make any sense to just get the next car early?

Having two cars on the go for more than a very brief period seems strange to me - and I'm aware there will be tax & potentially insurance to consider.

I'm not sure how to weigh things up to be honest.

Doubled-up insurance, especially with NCB taken into account.
Tax unless it's kept off the road (but that's probably minimal anyway on something ~3yo).
Parking permits?
Nah, it sounds like it's going to be a right PITA, spending a lot of money to save a relatively small amount.

kmb500

forgotmyname wrote: »

Dont forget yout insurance will have zero no claims if its in use on the current car. Will it actually save you £438? unlikely.

Depreciation on the new car is going to be more than that, plus the 2nd lot of insurance.

I had 4 years no claims on my most recent insurance policy renewal, can I not say on a second insurance policy that I have 4 years no claims?

Or I could ask current insurer if they can do a second car on the remainder of the policy (which would be easier regardless of NCB).

Depreciation should not be a factor as I intend to buy something like £1000 or less, some old banger. I don't want to have another new / expensive car, I want something super cheap.

AdrianC

kmb500 wrote: »

I had 4 years no claims on my most recent insurance policy renewal, can I not say on a second insurance policy that I have 4 years no claims?

No, because that NCB is already in use. You can't use it on multiple policies.

Or I could ask current insurer if they can do a second car on the remainder of the policy (which would be easier regardless of NCB).

They may offer you a marketing bonus of a similar discount. Or they may not.

custardy

Sounds a lot of hassle and minimal savings (if any) for 6 months.
As asked already. What other costs are you facing at the end of the lease?

kmb500

AdrianC wrote: »

12.5p/mile?

Well, it's money you've saved by not having a higher-mileage lease... Has your usage increased markedly over the term? If so, then perhaps it'll be cheapest to look into closing the lease down early.


How come? Is it because it's in poor condition?


Look into paying yourself to repair whatever's going to cause you to face the penalty charges before it goes back. It may well be that the penalties are cheaper, all things considered.


Doubled-up insurance, especially with NCB taken into account.
Tax unless it's kept off the road (but that's probably minimal anyway on something ~3yo).
Parking permits?
Nah, it sounds like it's going to be a right PITA, spending a lot of money to save a relatively small amount.

Usage has gone up and down as I've moved house twice and changed jobs 3 times in the last 3 years. But generally mileage has slowed down in past year. I'm changing jobs again in February and may have longer commute, dont know.



Costs of handing it back:
- Replacement spare key - £130
- Replacement rear bumper - £200
- Replacement fog light - £60
- Fix front wing dent - unknown cost (got a quote for £700 last time car was in dealership LOL nothanks)
- Alloy wheels refurb - £200
- "Admin fee" of removing registration plate - £42



Above are just guesstimates.


If I kept the lease going until 2 May and had a second car - I have no idea what insurance is tbh, I want to keep my NCB going so I guess I'd need my insurer to add it on which I would have thought they can do for a small fee...
The tax on a car, i know it depends on car. But if I got little old runabout then its £80 for half a year, so £40 for three months.
Tax on my current car is not considered, because it's included in the lease.

No parking permit or anything required.





The thought of ending lease early is a good point. I am not sure exactly what it would be if using that 55% figure, but I've got early termination quotes before and they've always been more than I'd thought they would be. I will calculate later what the pro rate fees on mileage would be.


And yes, 12.54p / mile, and then 19p / mile if you go over 15% over the 12500/year.

AdrianC

kmb500 wrote: »

Usage has gone up and down as I've moved house twice and changed jobs 3 times in the last 3 years. But generally mileage has slowed down in past year.

So you may well find that you're more over the pro-rata than you will be at the end of the term.

I'm changing jobs again in February and may have longer commute, dont know.

And, if you are, will you want to be doing that longer commute in a shed?

Costs of handing it back:
- Replacement spare key - £130
- Replacement rear bumper - £200
- Replacement fog light - £60
- Fix front wing dent - unknown cost (got a quote for £700 last time car was in dealership LOL nothanks)
- Alloy wheels refurb - £200

Above are just guesstimates.

How on earth have you got it into that state in not much over 2.5yrs...?!?

I think you're best just accepting the mileage cost.

kmb500

AdrianC wrote: »

12.5p/mile?

Well, it's money you've saved by not having a higher-mileage lease... Has your usage increased markedly over the term? If so, then perhaps it'll be cheapest to look into closing the lease down early.


How come? Is it because it's in poor condition?


Look into paying yourself to repair whatever's going to cause you to face the penalty charges before it goes back. It may well be that the penalties are cheaper, all things considered.


Doubled-up insurance, especially with NCB taken into account.
Tax unless it's kept off the road (but that's probably minimal anyway on something ~3yo).
Parking permits?
Nah, it sounds like it's going to be a right PITA, spending a lot of money to save a relatively small amount.

AdrianC wrote: »

So you may well find that you're more over the pro-rata than you will be at the end of the term.


And, if you are, will you want to be doing that longer commute in a shed?


How on earth have you got it into that state in not much over 2.5yrs...?!?

I think you're best just accepting the mileage cost.

Indeed I could be worse off with mileage fee if I end early..!


I don't think the "state" is that bad.



We all know how easy it is to kerb alloys.
As for actual bumps, it's only one, the rear bumper, happened just after I got the car. I reversed into my house the day I moved in. lol.


The front wing just suddenly turned up with a dent one day, someone must have opened a door into it I think.

Fog light is smashed, I would imagine a stone flicked up, not much I can do about that so I just left it rather than replacing.


Not to mention the new gearbox and new clutch & clutch cylinders I've had :P

And I already had a few bumps with animals but I fixed those anyway.



I lost my key when I was out running, fell out of my pocket and i never found it.


Fortunately I did not have to pay for the new gearbox and clutch that I had last year....! (Warranty)



As for my desire to drive a shed, yes I just want some very cheap motoring. I have spent a lot of money on my car in the last 3 years, spent lot of money on modifying and track days etc and £7000 or whatever the lease has been. So now I just want to spend as little money on cars as possible, even if it only for 6 months or a year or so.

silverwhistle

For starters it might be a good idea to at least start cutting out the short trips you can do by other means. Up to a mile I don't even bother getting the bicycle out, but that's another option.



At least you'll be starting on addressing the issue and may even be able to avoid all those expensive runs!;-) [I just take a house key on an elasticated hair band round my bra and tucked away..]

kmb500

silverwhistle wrote: »

For starters it might be a good idea to at least start cutting out the short trips you can do by other means. Up to a mile I don't even bother getting the bicycle out, but that's another option.



At least you'll be starting on addressing the issue and may even be able to avoid all those expensive runs!;-) [I just take a house key on an elasticated hair band round my bra and tucked away..]

Thanks. Yeah I do try to avoid short distance drives. If I am not short on time, if it's less than 2 or 3 miles I'll generally walk. I was cycling to work (10 mile commute) in the summer, but not very nice weather to do that at the moment.


I've also been using my parents' spare car (I live with them) when possible but atm its being used so I can't until my brother goes back to uni. (We're both insured on it and he gets it in holidays)