Doing long miles every day

**craig1** · 5 July 2011, 14:32

If leasing, go for a premium brand that holds its value as they tend to be cheaper to lease than brands that devalue quickly. ((purchase price - residual value)/lease term in months) plus interest charge plus maintenance = typical monthly lease payment. Unless someone has any better information than I do, don't lease through your company as it becomes a stupidly expensive taxable benefit if you go for a big car.

Also, the HMRC mileage rate isn't set in stone. Anything you expense above that rate is a taxable benefit but you may find that it's better to do that if you're paying yourself a peppercorn salary. Ask a friendly accountant.

On cars themselves, I've just handed back an Audi A4 2.7TDI, lovely car that just eats through motorway miles. Previous cars I've had include Mercs and BMWs but the Audi was by far the best long-distance driver.

**Dearnla** · 5 July 2011, 14:47

You're better off keeping the car you have and paying the petrol than going for a new car, whatever the fuel.

The depreciation and running cost compared to your old banger, plus any co. car tax you end up paying will far outweigh the fuel savings.

So if your current car does, say, 35mpg and you do 6k business miles a year, petrol costs are £1018 @£1.32 a litre. Go for a diesel that does 50mpg, and your fuel costs drop to £729 @ £1.35 a litre.

Hardly worth it, is it....

On the other hand, if you're after a new car, take a look at the Jag XF 3.0D or a BMW 3 or 5 series with a 6-cylinder diesel. Very comfy, although the 2.0D is more economical.....

**meanttobeworking** · 5 July 2011, 14:53

Leasing

A little tip on leasing - be careful of adding factory extras, they really sting you. As above, they work out your monthly fee based on the depreciation, then add their fees. So for a standard car lets say:

Purchase price: £30,000
Residual value: £20,000

Charge pm over 2 years = (£10,000 / 24) + fees

So far so good. However, if you add extras, let's say metallic paint (£500), big alloys (£700) and a BOSE stereo (£600) they take the value of those extras and load them all into your payments:

Charge pm over 2 years = (£10,000 / 24) + (£1,800 / 24) + fees.

So basically, you pay for the full cost of the extras, even though they actually add residual value to the vehicle. On the above example, you end up paying an extra £75pm, which is a reasonable hike from the prices they first quote you for standard cars.

**northernladuk** · 5 July 2011, 14:57

I was in exactly the same positions. 2.5L car and 400 miles a week. I worked out it was costing me 5K a year in tax/insurance and petrol.

I did some digging about and and just decided to get a steady middle of the road workhorse. Hunted around and the best thing I could find was <drum roll> Ford Focus TDCi. I am very very happy with it. In the first two weeks I was getting over 43mpg which was approaching double my old car. Tax is £90 a year, insurance didn't change me oddly. You can get an 03 from a dealer with about 45k on the clock for a smidge over £3500. It is a great car, bit dull but does exactly what it says it should, nice alloys, couple of the mod cons. It will not only pay for itself in 2 years but hold a bit of value and eat up the miles in some comfort.

My old one was 2+2 so her indoors not best pleased but now she has a good family run around so double bonus.

Definately recommend.

Also lease cars often have a cap on the mileage so check that. Also won't putting it through the business incurr BiK on top of everythign else as it is 'available' to use for personal business?

**eek** · 5 July 2011, 14:58

Originally posted by Dearnla View Post

You're better off keeping the car you have and paying the petrol than going for a new car, whatever the fuel.

The depreciation and running cost compared to your old banger, plus any co. car tax you end up paying will far outweigh the fuel savings.

So if your current car does, say, 35mpg and you do 6k business miles a year, petrol costs are £1018 @£1.32 a litre. Go for a diesel that does 50mpg, and your fuel costs drop to £729 @ £1.35 a litre.

Hardly worth it, is it....

On the other hand, if you're after a new car, take a look at the Jag XF 3.0D or a BMW 3 or 5 series with a 6-cylinder diesel. Very comfy, although the 2.0D is more economical.....

He is doing 22k business miles a year.
So business petrol costs are: 3732
Diesel costs would be 2673
difference - £1059.

Its probably not worth changing cars to cover the difference unless you buy something which has already done the bulk of its depreciation. But if you just want a new car try the audi a5 2.7 or Jag XF

**DaveB** · 5 July 2011, 15:01

Ford Mondeo. 10 plate with all the toys will cost you less than 15k and will eat the miles and keep you in comfort. Should also still be in warrenty and servicing doesnt cost an arm and a leg.

**SimonMac** · 5 July 2011, 15:02

Originally posted by ChimpMaster View Post

Hey all. I'm doing a lot of mileage every week, 500 miles or so, which at the moment I can expense (< 2 years etc.). However, it's costing me a far whack as I have a 2.5L petrol car.

I'm looking at getting a diesel as most of the driving is constant motorway/A-roads. Thing is, I've no idea which car to get, except that I want something decent and it's got to be comfortable for long drives. I would say top spending limit is circa £30k.

I may in fact have to lease the car, so again if you can provide any tips on this it would be appreciated - especially if there's a tax efficient way of using my Ltd Co. for it.

So to summarise:-
1) Which car?
2) Is it worthwhile to lease through the Ltd?

I am in the exact same boat (although doing 800 miles a week) and I have plumped for a BMW 520d, its big enough to be comfortable on long journeys but still be a very fun drive (although I not as fun as the MG it replaced), can easily get 50mpg from a 2008 model onwards (there was a change in engines or something which upped the fuel economy around this time), usually very well specced for the price and good resale value

I can't give you any suggestions on a leasing though.

**smckeown** · 5 July 2011, 15:26

Over the last 2-3 years i've been doing around 40k per year. I use a 2nd car as the depreciation on your main car will be a killer.

Can't finance a car on PCP as there're a mileage limit. Can't lease as again there's a mileage limit.

So I generally spend upto about £5k on a Mondeo Diesel (the ST is decent enough) or when i want even more practicality a Volvo v70.

**NorthWestPerm2Contr** · 5 July 2011, 15:48

I bought a VW golf 1.9 TDI 9 months ago. Very reliable, excellent economy but absolutely awful drive. Definitely do not buy a VW Golf - stiff, bland ride and kills your back. I would recommend a lexus as my family car is a toyota (and it's an amazing drive) and with lexus being toyota but with all the extra luxury I can't wait to get my hand on one of those (after I buy a damn house). My mechanic tells me everybody he knows who test drove one ending up buying one and that their economy is also really good.

Doing long miles every day