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Hi everyone,
First time poster, sorry in advance if it's been covered already in other sections and is a bit of a long winded headache.
Basically I'm a self employed private hire driver looking to get a new vehicle. I own my current car and was initially looking to go into contract hire for my next one to save any costly problems and gain on the tax expense benefits rather than the capital allowance pool @18% per year etc.
It turns out that I would have difficulty getting insurance and a plate for the car as I do not own the vehicle therefore I have been considering the option of a PCP. I have read various articles and forums and have gained a good insight into how the system works (thanks everyone) however I am not 100% on the best route for someone such as myself.
Currently looking at an approved used vehicle for sale at around £15k mark based on a pcp over 48 months more than likely looking to trade the car in for another one around year 3 or whenever someone on here with experience may recommend. I have read about people voluntary terminating the car after 50% paid with excess mileage etc, trading the car in with equity and using that as a deposit etc but to be honest I still haven't figured out the best path to take
I have done a couple of calculations on the dealers site based on the same car doing either 25k or 30k per year and come up with some different options. Whether they are the actual figures or they may change upon circumstances I do not yet know.
But to give you guys an idea to work off iv crunched a few numbers below. Same car same term just different mileage.
Car value £14990
Term 48 months
Deposit £0
Apr 6.9%
Excess mileage 6p per mile
Annual mileage 25k (100k term total)
47 monthly payments @£283.48 =£13323.56
Optional final payment £4286.59
Option to purchase fee £10
Total amount payable £17620.15
Passed 50% paid [MENTION=43412]mon[/MENTION]th 32 (£9071.36)
Annual mileage 30k (120k term total)
47 monthly payments @£292.47 =£13746.09
Optional final payment £3802.98
Option to purchase fee £10
Total amount payable £17559.06
Passed 50% paid @ month 31 (£9066.57)
As you can see above the payment plan has me paying an extra £422.53 total over the 4 years if I was to go for 30k per year and valuing the car £483.61 less than the 25k per year even though the overall amount payable is £61.09 less on the higher mileage.
However, should I opt for the lesser annual mileage and actually do 30k per year which is generally what I do at the minute then the excess mileage of 20k x 6p would be £1200 that is without vat which I assume they probably add to it.
It may sound like a no brainer as if I'm going to archive 30k per year then why not do that right. Well after reading everyone's posts about VT and trading in early I find myself saying is it better to take less miles with lower payments and trade early before the mileage cap of 100k is hit or do they actually base it on annual figures? As if I took a 25k path and decided to trade at month 32 then theoretically on a 30k annual at month 32 I would only be at 80k which is under the 100k total.
My questions are:-
1- can someone in my position get a pcp deal?
2-is there a mileage cap or is the sky the limit upon sign up and the more you say the more you pay?
3-based on the scenarios about what do people think seems the most sensible and cost effective route?
4-in terms of cutting the term short is it better to trade or voluntary terminate
5- if the car is worth more than anticipated is there any trade in benefits rather than buying it for the final payment and selling private?
Apologies once again if it's been covered already but I have hunted high and low for info on various sites.
Any information would be greatly appreciated
Thanks
First time poster, sorry in advance if it's been covered already in other sections and is a bit of a long winded headache.
Basically I'm a self employed private hire driver looking to get a new vehicle. I own my current car and was initially looking to go into contract hire for my next one to save any costly problems and gain on the tax expense benefits rather than the capital allowance pool @18% per year etc.
It turns out that I would have difficulty getting insurance and a plate for the car as I do not own the vehicle therefore I have been considering the option of a PCP. I have read various articles and forums and have gained a good insight into how the system works (thanks everyone) however I am not 100% on the best route for someone such as myself.
Currently looking at an approved used vehicle for sale at around £15k mark based on a pcp over 48 months more than likely looking to trade the car in for another one around year 3 or whenever someone on here with experience may recommend. I have read about people voluntary terminating the car after 50% paid with excess mileage etc, trading the car in with equity and using that as a deposit etc but to be honest I still haven't figured out the best path to take
I have done a couple of calculations on the dealers site based on the same car doing either 25k or 30k per year and come up with some different options. Whether they are the actual figures or they may change upon circumstances I do not yet know.
But to give you guys an idea to work off iv crunched a few numbers below. Same car same term just different mileage.
Car value £14990
Term 48 months
Deposit £0
Apr 6.9%
Excess mileage 6p per mile
Annual mileage 25k (100k term total)
47 monthly payments @£283.48 =£13323.56
Optional final payment £4286.59
Option to purchase fee £10
Total amount payable £17620.15
Passed 50% paid [MENTION=43412]mon[/MENTION]th 32 (£9071.36)
Annual mileage 30k (120k term total)
47 monthly payments @£292.47 =£13746.09
Optional final payment £3802.98
Option to purchase fee £10
Total amount payable £17559.06
Passed 50% paid @ month 31 (£9066.57)
As you can see above the payment plan has me paying an extra £422.53 total over the 4 years if I was to go for 30k per year and valuing the car £483.61 less than the 25k per year even though the overall amount payable is £61.09 less on the higher mileage.
However, should I opt for the lesser annual mileage and actually do 30k per year which is generally what I do at the minute then the excess mileage of 20k x 6p would be £1200 that is without vat which I assume they probably add to it.
It may sound like a no brainer as if I'm going to archive 30k per year then why not do that right. Well after reading everyone's posts about VT and trading in early I find myself saying is it better to take less miles with lower payments and trade early before the mileage cap of 100k is hit or do they actually base it on annual figures? As if I took a 25k path and decided to trade at month 32 then theoretically on a 30k annual at month 32 I would only be at 80k which is under the 100k total.
My questions are:-
1- can someone in my position get a pcp deal?
2-is there a mileage cap or is the sky the limit upon sign up and the more you say the more you pay?
3-based on the scenarios about what do people think seems the most sensible and cost effective route?
4-in terms of cutting the term short is it better to trade or voluntary terminate
5- if the car is worth more than anticipated is there any trade in benefits rather than buying it for the final payment and selling private?
Apologies once again if it's been covered already but I have hunted high and low for info on various sites.
Any information would be greatly appreciated
Thanks
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