Whats the best option for high mileage?

Munchkin08

Hello!

My Husband is potentially changing jobs, for the last 20 years we have both had company cars, which are fully maintained, serviced etc, and so we are both out of the loop when it comes to anything else.
The new company do not offer company cars, he would have a £9k per year car allowance instead.
He does a lot of miles - 30k+ spends 2-4 hours a day driving, and is tall with back problems. So needs a decent size & spec car.
He has typically had Audi A6/Jag XF type cars, and would ideally want to stay in that range.

I've been having a google and it seems if he were to lease a car, they do not like high mileage drivers?
So would it be better to go to a dealership and buy a car on a PCP type plan?
And then be able to change every 2/3 years?

Ideally he doesn't want to have to pay a huge deposit/down payment and doesn't want to spend over the car allowance if possible.

But we really don't have a clue, so any advice would be amazing, thank you!

AdrianC

Whether he looks at PCP or lease, of course the monthly pricing is going to take account of mileage - simply because you're paying for the depreciation, and that's heavily influenced by mileage.

If he goes PCP or lease, he's tying to a fixed term.

If he finances the entire cost of the car, then he frees himself from the mileage and gives himself flexibility on the term - BUT exposes himself to variability in depreciation.

Going PCP rather than lease means he can benefit from lower depreciation than expected, and can extend the term if he wishes by buying the car at the end.

Remember the £9k is before income tax - but he won't be paying the BiK income tax that he's used to on the company car. Then there'll be a fuel allowance, presumably, for his business miles (how many of the 30k are business, how many are private including commuting?)

mgfvvc

Munchkin08 wrote: »

I've been having a google and it seems if he were to lease a car, they do not like high mileage drivers?
So would it be better to go to a dealership and buy a car on a PCP type plan?

Probably not. PCP plans have limited mileage and excess mileage charges too. You would need to look at how much a lease or PCP would cost with a realistic mileage limit and compare.


I really can't say what would be best. I always buy a 3 to 4 year old car, which means that the depreciation costs are much lower, but that might not suit you? Buying/leasing a new car you are always looking at more than 50% depreciation over 3 years on a normal mileage. Add in high mileage and it could be even more.

Ectophile

Rather than get stuck with the inflexibility of a lease or PCP, why not just buy a reasonably new used car? One that somebody else has already paid for the depreciation on.


You can change it whenever you like. There's no excess mileage fees. Minor damage can be fixed or not, your choice.

DrEskimo

Munchkin08 wrote: »

So would it be better to go to a dealership and buy a car on a PCP type plan?
And then be able to change every 2/3 years?

I don't know where this idea comes from, but dealers must love it...

It is not any easier to change a car every 2/3years on a PCP than it is on a used car bought outright. In fact, owning a car without finance secured on it makes it much easier to sell privately and so gives you more options.

However buying a car, whether cash or PCP, and then trading it in later on is exactly the same process.

View PCP for what it is, just a finance product to loan you money to buy a car. It will stop clouding your judgement that somehow a £30k brand new car with predicted depreciation of around £20k and interest costs well into £3k is somehow cheaper than a £15k used version of the same car, with a small bank loan costing £200 in interest costs, all because the monthly cost is lower.

[Deleted User]

A Skoda Superb diesel would be a good high mileage car. They are huge inside so good for tall people. Loads of luxury for at lot less than a Jag and will be more reliable.

foxy-stoat

Probably about £425 after tax - why not get a 3 year loan for £10,000 (low interest rate repayments about £275 a month) save the other £150 a month for running costs and buy a good secondhand car and replace it every 3 years. If he doesn't manage to spend £5,400 on repairs at the end of the 3rd year then put that towards the next car and the value of the existing and get a smaller loan. Maybe even save a bit more and be in a position to buy a car outright without using the loan.

Are there any restrictions of the type, age and mileage of car is has to buy? I have where I work but happily run a £5,000 car without any issues.

Cisco001

You need to check with the company if there is restrictions on car for company allowance.
Mine need to be car under 6 years and 100000 miles.

username901

If theres no restriction then the easy answer is a Lexus LS. Will do half a million miles on nothing more than servicing

foxy-stoat

username901 wrote: »

If theres no restriction then the easy answer is a Lexus LS. Will do half a million miles on nothing more than servicing

Of course - recommend a car with a 4+ ltr V8 engine if they are doing 30,000 miles a year.

Crazy stuff.

almillar

^ Yes - lots and lots and lots of petrol will also be required.