Hi All,
It really is time for me to bite the bullet on buying a newer vehicle.
I've got a family with two children and we both currently drive around in 15-20 year old (volvo estate and a fiesta) cars (neither which have air con). I think we've done bangernomics for long enough and now need something that is suitable to growing toddlers.
I work in renewables (and so probably should be more conscious of what I drive), with this I have the option of using Octopus' salary sacrifice scheme (the only caveat is we're not able to have a Tesla, we can have any other manufacturer regardless of price point).
I've test drove the Polestar 2 (boot is a little bit small), Tesla Model 3 and Model Y, Audi Q4-etron. I also, alternatively really like the Land Rover Discovery. My preference is the Model Y.
I've been trying to work some maths out and could do with a sense check on what to do next. I've been trying to use the Model Y as a comparison in the below.
A £33k loan over 3 years would cost me £1028.48 monthly. Now, accounting for old, lowers my take-home by £529 or £19,044 for 3 years. However, this includes all insurance, tax, MOT, maintenance tyres, breakdown cover, etc.ke this. I've always driven around in a crap car because I've always wanted to 'own' it and not have a PCP or anything like a lease - I don't like the idea of throwing money down the drain to keep up with the Jones's.
I earn c. £90-100k p.a. and my partner £33-35k p.a. Currently our cars are our own and only cost is fuel, insurance, MOT, tax, breakdown cover, maintenance, tyres etc.
Octopus Salary Sacrifice
A £33k loan over 3 years would cost me £1028.48 monthly. Now accounting for old lower my take home by £529 or £19,044 for 3 years. However this includes all insurance, tax, MOT, maintenance tyres, breakdown cover etc.
Second Hand Model Y
I could buy a second-hand Model Y (2-3 years old) for around £30-33k via Autotrader, etc. I'd do this through a loan (and/or some cash). Question: Should I use some cash and take out a smaller loan? Lower interest?
Loan options:
This gives the following all-in cost over the term / per month:
Should I be using the salary sacrifice scheme? Or am I letting the tax tail wag the proverbial dog? Should I look at PCP or HP or private lease?
Should I look at an ICE vehicle? I can get a Land Rover discovery for c. £20k?
It really is time for me to bite the bullet on buying a newer vehicle.
I've got a family with two children and we both currently drive around in 15-20 year old (volvo estate and a fiesta) cars (neither which have air con). I think we've done bangernomics for long enough and now need something that is suitable to growing toddlers.
I work in renewables (and so probably should be more conscious of what I drive), with this I have the option of using Octopus' salary sacrifice scheme (the only caveat is we're not able to have a Tesla, we can have any other manufacturer regardless of price point).
I've test drove the Polestar 2 (boot is a little bit small), Tesla Model 3 and Model Y, Audi Q4-etron. I also, alternatively really like the Land Rover Discovery. My preference is the Model Y.
I've been trying to work some maths out and could do with a sense check on what to do next. I've been trying to use the Model Y as a comparison in the below.
A £33k loan over 3 years would cost me £1028.48 monthly. Now, accounting for old, lowers my take-home by £529 or £19,044 for 3 years. However, this includes all insurance, tax, MOT, maintenance tyres, breakdown cover, etc.ke this. I've always driven around in a crap car because I've always wanted to 'own' it and not have a PCP or anything like a lease - I don't like the idea of throwing money down the drain to keep up with the Jones's.
I earn c. £90-100k p.a. and my partner £33-35k p.a. Currently our cars are our own and only cost is fuel, insurance, MOT, tax, breakdown cover, maintenance, tyres etc.
Octopus Salary Sacrifice
A £33k loan over 3 years would cost me £1028.48 monthly. Now accounting for old lower my take home by £529 or £19,044 for 3 years. However this includes all insurance, tax, MOT, maintenance tyres, breakdown cover etc.
Second Hand Model Y
I could buy a second-hand Model Y (2-3 years old) for around £30-33k via Autotrader, etc. I'd do this through a loan (and/or some cash). Question: Should I use some cash and take out a smaller loan? Lower interest?
Loan options:
- a) £28k loan (£5k cash) 36 months £872.65 p/m
- b) £33k loan 36 months £1,028.48 p/m
- c) £28k loan (£5k cash) 48 months £678.71 p/m
- d) £33k loan 36 months £799.91 p/m
This gives the following all-in cost over the term / per month:
- a) £40,645 / £1,129 p/m
- b) £41,255 / £1,146 p/m
- c) £43,218 / £900 p/m
- d) £44,036 / £917 p/m
- a) £22,645 / £629 p/m
- b) £23,255 / £646 p/m
- c) £28,218 / £588 p/m
- d) £29,036 / £605 p/m
Should I be using the salary sacrifice scheme? Or am I letting the tax tail wag the proverbial dog? Should I look at PCP or HP or private lease?
Should I look at an ICE vehicle? I can get a Land Rover discovery for c. £20k?