Buying advice from a company car to Tesla

[bbtom10]

Hi all, (this is a long post, no apologies, just a warning!)

I've been lurking for a while but just wanted to share my current dilemma to get your thoughts.

I currently drive a Skoda Superb, 2.0 estate and love every bit of it. Fully loaded, adaptive cruise, auto tailgate, android auto. I drive around 20K miles per year.

The Skoda is a company car but there are no decent cars on the new list so when the contract ends in April I am planning to purchase it and take a car allowance instead. I will keep the Skoda for a while until I sort out my next car, which my heart tells me should be a Used Tesla Model S, ideally 2017 facelift unicorn car.

I am concerned the Model 3 is too small for my family. We have driving holidays once or twice a year to France and whilst I can now close the cover on my boot once everything is packed, we take a lot of stuff, so I think the Model 3 is going to be too small.

I also prefer the 'executive saloon' look of the Model S. Not too bothered about facelift or not but seems like 2016 or newer is best for 2nd hand models.

I'm obviously working up a spreadsheet as moving from a company car to my own car introduces a lot of extra costs, not least insurance (£1,000 p/annum - I'm assuming no NCD, though that might be possible), tax, MOT, servicing. I will be able to claim 4p per mile from my company and make a tax claim for the tax difference on the rest at 45p/25p per mile (about an extra £1000 per year).

By making the switch I will be about £650 per month better off than I am now - but then I need to pay for insurance and a loan for the purchase of the current car.

I am buying the Skoda because the balloon payment is £7,500, whereas as I haven't done the mileage, private sale should be around £12,500. By the way, Tesla have offered £9,000 part-ex. Webuyanycar offered £10,500! So £5K 'profit' sounds like a no brainer. Running the Skoda will cost me about £400 per month in loan, service & insurance, so £250 per month to save up.

Plan would be to save up for a few months, then sell the Skoda, increase the loan to £25K and buy a used Model S for around £35-£40K. My monthly outgoing would then increase to about £650, so I'd be in the same position I'm in now - wouldn't I?

I think the Model S would be great, performance would be great, autopilot is a must (for adaptive cruise), not too concerned about FSD at the moment, but AP2 car would be nice so I could consider it in the future.

But what am I thinking when I could quite easily go buy a second hand BMW 530 Touring for half the price? It would cost me a packet in servicing I suppose, and of course fuel.

Anyway, that's my dilemma and plan - where am I going wrong? Convince me the Model S (or a new Model 3) would be the right way to go!

Thanks in advance
Tom

 

[Alan J]

Hi all, (this is a long post, no apologies, just a warning!)

I've been lurking for a while but just wanted to share my current dilemma to get your thoughts.

I currently drive a Skoda Superb, 2.0 estate and love every bit of it. Fully loaded, adaptive cruise, auto tailgate, android auto. I drive around 20K miles per year.

The Skoda is a company car but there are no decent cars on the new list so when the contract ends in April I am planning to purchase it and take a car allowance instead. I will keep the Skoda for a while until I sort out my next car, which my heart tells me should be a Used Tesla Model S, ideally 2017 facelift unicorn car.

I am concerned the Model 3 is too small for my family. We have driving holidays once or twice a year to France and whilst I can now close the cover on my boot once everything is packed, we take a lot of stuff, so I think the Model 3 is going to be too small.

I also prefer the 'executive saloon' look of the Model S. Not too bothered about facelift or not but seems like 2016 or newer is best for 2nd hand models.

I'm obviously working up a spreadsheet as moving from a company car to my own car introduces a lot of extra costs, not least insurance (£1,000 p/annum - I'm assuming no NCD, though that might be possible), tax, MOT, servicing. I will be able to claim 4p per mile from my company and make a tax claim for the tax difference on the rest at 45p/25p per mile (about an extra £1000 per year).

By making the switch I will be about £650 per month better off than I am now - but then I need to pay for insurance and a loan for the purchase of the current car.

I am buying the Skoda because the balloon payment is £7,500, whereas as I haven't done the mileage, private sale should be around £12,500. By the way, Tesla have offered £9,000 part-ex. Webuyanycar offered £10,500! So £5K 'profit' sounds like a no brainer. Running the Skoda will cost me about £400 per month in loan, service & insurance, so £250 per month to save up.

Plan would be to save up for a few months, then sell the Skoda, increase the loan to £25K and buy a used Model S for around £35-£40K. My monthly outgoing would then increase to about £650, so I'd be in the same position I'm in now - wouldn't I?

I think the Model S would be great, performance would be great, autopilot is a must (for adaptive cruise), not too concerned about FSD at the moment, but AP2 car would be nice so I could consider it in the future.

But what am I thinking when I could quite easily go buy a second hand BMW 530 Touring for half the price? It would cost me a packet in servicing I suppose, and of course fuel.

Anyway, that's my dilemma and plan - where am I going wrong? Convince me the Model S (or a new Model 3) would be the right way to go!

Thanks in advance
Tom

Model 3 is really quite a generous car with great internal space and large but maybe slightly narrow boot opening, frankly I'd be surprised if it wasn't big enough for your Family Holidays and is obviously a much newer design and more practical as a day to day car, but obviously your call.

 

[BK11SBY]

I also have a Skoda Superb estate (67) company car and wish I could use my Model S for work. Mine is an early 2014 with AP1 but don't miss ACC when I switch. I think your best bet is a 2nd hand Model S as the access to the boot is vastly different to the 3. Go for an early single motor and you'll have a huge frunk too!

 

[tess19]

Why don't you run the skoda for a couple years and get a model y when that comes to the uk? Its bigger and will have the latest mcu and drivetrain.

 

[MrBadger]

You will miss weight carrying capacity over the Skoda. We had a Passat estate and could throw pretty much anything into it without worrying about exceeding weight limits - sometimes have a need to carry 6 lead acid batteries for electric car racing. The Model 3 is very much restricted in its weight carrying - ours is 375kg which includes occupants and cargo - I have no idea why it is so low, well within tyre loadings. Add the batteries and 4 up plus kit becomes a problem, even marginal without batteries. I hope the Model Y gets a better weight carrying capacity.

 

[gangzoom]

I am buying the Skoda because the balloon payment is £7,500, whereas as I haven't done the mileage, private sale should be around £12,500. By the way, Tesla have offered £9,000 part-ex. Webuyanycar offered £10,500! So £5K 'profit' sounds like a no brainer. Running the Skoda will cost me about £400 per month in loan, service & insurance, so £250 per month to save up.

Plan would be to save up for a few months, then sell the Skoda, increase the loan to £25K and buy a used Model S for around £35-£40K. My monthly outgoing would then increase to about £650, so I'd be in the same position I'm in now - wouldn't I?

So what's the finance numbers?

Am not sure how your loan cost is £400/month based on £7.5k purchase cost of the Skoda.

But only goes up to £650/month for another additional £15k ish of borrowing? So in effect your loan amount is 3 time higher but your monthly repayments only 1.6 times more?

With a decent APR of sub 3% a £25k loan over 3 years is £700/month, that's before insurance costs.

Also don't assume £5k profit is so easy to return on a used car with private sale. Look at the CHEAPEST car on Autotrader, be honest how good condition your current car is, and than take 10% off, that's probably your true in the pocket money if you want a quick sale.

 

[gangzoom]

Why don't you run the skoda for a couple years and get a model y when that comes to the uk? Its bigger and will have the latest mcu and drivetrain.

Starting price of the Y will be well over £40k more likely over £45k. If the OP can budget to save that amount up over the next 2 years thats fine, otherwise it'll be beyond reach financially.

 

[pgkevet]

Other things to consider. I suspect you may be optimistic over used S prices depending on age and model and battery size - which then depends on how much business mileage you need and possibly include stops/recharge and work-time delays. Do you have chaging facilties at work? Also when it comes to servicing/repairs then tesla are hardly cheap (or efficient)...so ideally a decent warranty. Insurance costs may suprise you too.

 

[Lupe]

I’m pretty sure you won’t be able to claim the Difference from HMRC. I don’t even think the 4p can be classed as a tax free payment if I read correctly. Ideally you get this car as a company car as 0% BIK from April and your effective rental is reduced through the VAT the company can reclaim

 

[Rooster6655]

I am buying the Skoda because the balloon payment is £7,500, whereas as I haven't done the mileage, private sale should be around £12,500. By the way, Tesla have offered £9,000 part-ex. Webuyanycar offered £10,500! So £5K 'profit' sounds like a no brainer. Running the Skoda will cost me about £400 per month in loan, service & insurance, so £250 per month to save up.

Well you can knock about 1k off the webuyanycar quote as they also find some problems to justify their lower offers.

You would probably be best sticking with the Skoda for 1/2 years as to build up your NCB as well then have a look at getting an AP2 Model S or a Model Y

 

[booyaka76]

I’m pretty sure you won’t be able to claim the Difference from HMRC. I don’t even think the 4p can be classed as a tax free payment if I read correctly. Ideally you get this car as a company car as 0% BIK from April and your effective rental is reduced through the VAT the company can reclaim

agreed - my understanding, after discussion with my accountant, is that the 4p a mile I claim from my company, is the full amount I can claim for business miles. I can't then claim the difference between that and the old 45p a mile from previous ICE car days.

 

[davidmc]

Regards NCB, ask your company or company insurance provider to write you a letter stating the time you have been with the company and how many years NC you have had.

I got this from my company and got 9years added. You can not protect it tho until after your first year. It made a big difference in cost.

 

[R4zb3rry]

I think it’s important to understand the term ‘car allowance’ and how the OP is using this.

I read that the company will be providing a flat monthly rate for the OP to run a personal vehicle in which case they are entitled to Mileage Allowance Payments for each business mile which, is currently the 45/25p noted, if they are paid less then they can claim the tax on the difference.

If however the company is providing/buying/leasing the vehicle and the ‘car allowance’ is the figure they are contributing then the AER rate of 4p applies and is the limit of the claim that may be made.

Currently the MAP rate does not differentiate between fuel source for cars which, is why it is typically more financially beneficial to run an EV as a personal car for business use IMO.

 

[DJP31]

I think it’s important to understand the term ‘car allowance’ and how the OP is using this.

I read that the company will be providing a flat monthly rate for the OP to run a personal vehicle in which case they are entitled to Mileage Allowance Payments for each business mile which, is currently the 45/25p noted, if they are paid less then they can claim the tax on the difference.

If however the company is providing/buying/leasing the vehicle and the ‘car allowance’ is the figure they are contributing then the AER rate of 4p applies and is the limit of the claim that may be made.

Currently the MAP rate does not differentiate between fuel source for cars which, is why it is typically more financially beneficial to run an EV as a personal car for business use IMO.

I read it the same way. At the moment OP has a company car, and he’s changing to a car allowance which will be taxed and NI’d under the PAYE system. The 45p/25p applies, with tax due back on the difference between this and what the employer pays.

 

[DJP31]

I'm obviously working up a spreadsheet as moving from a company car to my own car introduces a lot of extra costs, not least insurance (£1,000 p/annum - I'm assuming no NCD, though that might be possible)

Most Insurers will allow an ‘introductory’ discount if you can provide a letter from your employer/fleet insurer to confirm you’ve driven claim free for X years. Some have a form specifically for this purpose, so worth investigating that - it will help with the spreadsheet

 

[Ant M3]

Hi all, (this is a long post, no apologies, just a warning!)

I've been lurking for a while but just wanted to share my current dilemma to get your thoughts.

I currently drive a Skoda Superb, 2.0 estate and love every bit of it. Fully loaded, adaptive cruise, auto tailgate, android auto. I drive around 20K miles per year.

The Skoda is a company car but there are no decent cars on the new list so when the contract ends in April I am planning to purchase it and take a car allowance instead. I will keep the Skoda for a while until I sort out my next car, which my heart tells me should be a Used Tesla Model S, ideally 2017 facelift unicorn car.

I am concerned the Model 3 is too small for my family. We have driving holidays once or twice a year to France and whilst I can now close the cover on my boot once everything is packed, we take a lot of stuff, so I think the Model 3 is going to be too small.

I also prefer the 'executive saloon' look of the Model S. Not too bothered about facelift or not but seems like 2016 or newer is best for 2nd hand models.

I'm obviously working up a spreadsheet as moving from a company car to my own car introduces a lot of extra costs, not least insurance (£1,000 p/annum - I'm assuming no NCD, though that might be possible), tax, MOT, servicing. I will be able to claim 4p per mile from my company and make a tax claim for the tax difference on the rest at 45p/25p per mile (about an extra £1000 per year).

By making the switch I will be about £650 per month better off than I am now - but then I need to pay for insurance and a loan for the purchase of the current car.

I am buying the Skoda because the balloon payment is £7,500, whereas as I haven't done the mileage, private sale should be around £12,500. By the way, Tesla have offered £9,000 part-ex. Webuyanycar offered £10,500! So £5K 'profit' sounds like a no brainer. Running the Skoda will cost me about £400 per month in loan, service & insurance, so £250 per month to save up.

Plan would be to save up for a few months, then sell the Skoda, increase the loan to £25K and buy a used Model S for around £35-£40K. My monthly outgoing would then increase to about £650, so I'd be in the same position I'm in now - wouldn't I?

I think the Model S would be great, performance would be great, autopilot is a must (for adaptive cruise), not too concerned about FSD at the moment, but AP2 car would be nice so I could consider it in the future.

But what am I thinking when I could quite easily go buy a second hand BMW 530 Touring for half the price? It would cost me a packet in servicing I suppose, and of course fuel.

Anyway, that's my dilemma and plan - where am I going wrong? Convince me the Model S (or a new Model 3) would be the right way to go!

Thanks in advance
Tom

I LOVE my model 3 but with 3 kids it will never be the real family car ... that’ll still my wife’s FPace... it’s just to small in the back for the three kids to sit comfortably for a long drive

 

[bbtom10]

Model 3 is really quite a generous car with great internal space and large but maybe slightly narrow boot opening, frankly I'd be surprised if it wasn't big enough for your Family Holidays and is obviously a much newer design and more practical as a day to day car, but obviously your call.

Thanks, I also deliver cakes for my wife so power tailgate is a very useful addition, as in model s. I am aware of aftermarket model 3 boot springs... any experience?

 

[bbtom10]

Sorry for lack of replies, bad form on my part posting a question then not monitoring replies,

 

[bbtom10]

So what's the finance numbers?

Am not sure how your loan cost is £400/month based on £7.5k purchase cost of the Skoda.

But only goes up to £650/month for another additional £15k ish of borrowing? So in effect your loan amount is 3 time higher but your monthly repayments only 1.6 times more?

With a decent APR of sub 3% a £25k loan over 3 years is £700/month, that's before insurance costs.

Also don't assume £5k profit is so easy to return on a used car with private sale. Look at the CHEAPEST car on Autotrader, be honest how good condition your current car is, and than take 10% off, that's probably your true in the pocket money if you want a quick sale.

Thanks for your thought. Main difference would be 10k loan, 2.9% Sainsbury’s, 36 months to buy Skoda, 25k loan, same rate and bank but over 60 months.

I am wary of the expected value of the Skoda so I am being conservative in my expectations. All really depends if I can get the 12.5k private sale (i’ll List at 14k, 70k miles, top spec, fdsh, not a scratch.)

 

[bbtom10]

U

Starting price of the Y will be well over £40k more likely over £45k. If the OP can budget to save that amount up over the next 2 years thats fine, otherwise it'll be beyond reach financially.

used model x though in two years... tempting, but I’m already excited so doubt I will have the patience to see out the year.