PCP, HP, loan, who is best to speak to?

CashStrappedTeen89

Moving companies shortly and struggling to find who is best to speak to on this sort of matter.

Back history is existing company provides a Tesla model 3 for a pool car and me to use (I pay BIK and take it home). I’m currently a director through an EMI scheme with a single share although this is being sold back as a bad leaver.

New company is standard employee, 50k plus a 6K car allowance. The eventual plan here is I become a shareholder here (subject to me proving my worth).

I have no real savings but no debt (past the mortgage). I’m looking at the best move, as it stands a 6K car allowance probably means I come out with £200-£250 after tax to use so that puts a lot of vehicles out. My first thought is a low interest loan for around 5-10k and pay this off over 2-3 years and look for something like a Audi A5 or Vauxhall insignia.

I’m just wondering if I’ve approached it from the best way and if anyone else in a similar position found a better way or more efficient way to use the money.

Grumpy_chap

If you have a salary of around £3.5k / month take home and your mortgage paid off, can you buy something from whatever you can make as "left over" from this month's salary and then save up to buy a better car over the next few months?  Then you will be able to either buy outright, or buy with a suitable deposit to get a better car.  You will also be through the probationary period on the new job so feel more secure in signing up to credit (though there is no real security for 2 years).

lopsyfa

Grumpy_chap said:

If you have a salary of around £3.5k / month take home and your mortgage paid off, can you buy something from whatever you can make as "left over" from this month's salary and then save up to buy a better car over the next few months?  Then you will be able to either buy outright, or buy with a suitable deposit to get a better car.  You will also be through the probationary period on the new job so feel more secure in signing up to credit (though there is no real security for 2 years).

They still have a mortgage - I read it as mortgage is their only debt but I agree with your general advice.

Jenni_D

The other thing to bear in mind (although with a Tesla being an EV the BIK will be relatively low) ... the tax you were paying out on the BIK can also be added to the monthly "fund" to boost the allowance total.

Grumpy_chap

lopsyfa said:

They still have a mortgage - I read it as mortgage is their only debt but I agree with your general advice.

Aaah, yes.  

CashStrappedTeen89 said:

I have no real savings but no debt (past the mortgage). 

I read that as the OP was past the mortgage, i.e. fully paid off, it is history.

You have read it as no debt other than the mortgage, which is probably more correct.

I still think the "it'll do" car in the very short term is still sound advice, then get the more suitable car on whatever finance in a more relaxed timeframe is generally viable.  The catch might be if the new employer has conditions attached to the car allowance £6k - even then, there may be an understanding and time to comply.

CashStrappedTeen89

Grumpy_chap said:

If you have a salary of around £3.5k / month take home and your mortgage paid off, can you buy something from whatever you can make as "left over" from this month's salary and then save up to buy a better car over the next few months?  Then you will be able to either buy outright, or buy with a suitable deposit to get a better car.  You will also be through the probationary period on the new job so feel more secure in signing up to credit (though there is no real security for 2 years).

Apologies grumpy, we have a 95k mortgage left. I am the main earner and £1700 currently just covers all the bills. I was planning to put £2,000 aside to start building our account up for anything unexpected.

my other half brings in around £1300-£1400 but covers days out, birthdays etc.

CashStrappedTeen89

Jenni_D said:

The other thing to bear in mind (although with a Tesla being an EV the BIK will be relatively low) ... the tax you were paying out on the BIK can also be added to the monthly "fund" to boost the allowance total.

Thank you! I am looking forward to the tax side of things being sorted by them and not having to complete a self assessment anymore albeit I will have to do one for this financial year to cover up to when I leave.

CashStrappedTeen89

Grumpy_chap said:

lopsyfa said:

They still have a mortgage - I read it as mortgage is their only debt but I agree with your general advice.

Aaah, yes.  

CashStrappedTeen89 said:

I have no real savings but no debt (past the mortgage). 

I read that as the OP was past the mortgage, i.e. fully paid off, it is history.

You have read it as no debt other than the mortgage, which is probably more correct.

I still think the "it'll do" car in the very short term is still sound advice, then get the more suitable car on whatever finance in a more relaxed timeframe is generally viable.  The catch might be if the new employer has conditions attached to the car allowance £6k - even then, there may be an understanding and time to comply.

No conditions I already checked. They just asked it’s a suitable car for the job (IT).
considering my position without debt etc it’s comforting others agree. Once settled and hopefully share holding sorted and probation I can then look into another company vehicle would be the logical next move.

Appreciate you taking the time to respond.