Budget Information
Don't know what you can afford? Never had a car before and want some budget advice? You have come to the right place. From the budget you have for motoring you have several things to take into account:
Monthly Payment
This is the money you pay every month to the finance company for the car. This amount varies dramatically depending upon the make & model of car, the rate it depreciates, the length of time you agree to have the car for and what specification the car has. For an exact quote please contact us, or request a quote on line.
If you have a budget for the monthly payment, but don't know what you can afford take a look at our budget guide. Or for a good indication of the price you will have to pay for a car please follow this link.
Routine servicing and maintenance can be included for a small increase to the monthly rentals, this work will be carried out by the main dealer network at a dealer of your choice. Maintenance packages can include replacement tyres (excluding punctures), batteries, exhausts and all parts that are subject to fair wear and tear.
Maintenance & Repair
There are several things to consider with maintenance and repairs not covered within the lease agreement. Repair bills for damage beyond fair ware & tear is payable to damage at the end of the agreement as is excess mileage. Additionally you may wish AV Leasing to have the maintenance costs included within your monthly repayments. This can include all routine servicing and maintenance, tyres, exhausts and other consumables.
When selecting a car it is advisable to leave a little bit of slack in your budget as all motoring costs are flexible and cars do pick-up minor damage that will need repairing.
Fuel and Insurance
Fuel consumption varies dramatically dependent upon many variables including the make, model, engine size, fuel type, gear box, type of driving conditions, and style of driving. With the increasing oil price this is more of a consideration in the past. Also you may want to remember that even if your company pays for your fuel the higher the consumption, typically the higher the CO2 emissions thus increased company car tax! As a very rough guide you should allow at least 10p /mile for the smallest cars and up to 60p +/mile for more exotic vehicles. Please refer to the manufacturers fuel consumption data to generate a more accurate estimate. Also please remember you are required to provide fully comprehensive insurance for the car leased to you.
Company Car Tax
From April 2002 a graduated rate of car tax was introduced based on the car's CO2 emissions. A Vehicles CO2 emission level helps determine what percentage of the on-the-road price is taxable. The lower the CO2 level the lower the tax liability.
The effect is low business mileage users now pay tax at the same amount as high business mileage users.
How are CO2 emissions measured?
Each vehicle is sample tested to produce a figure for the weight of CO2 produced every 100 km (hence g/km).
Can you give me an example?
You purchase a new Mercedes C180 SE Auto. This car has a CO2 emission of 202 g/km which, from the CO2 vs Tax Rate Table, means it is taxable at 20% in 2003/4. This percentage is then multiplied by the on-the-road price given the figure the driver pays tax against. In this example the amount the driver is liable to pay tax against is £5519.28. So for a lower level income tax payer driving this car would pay 23% of this figure: 5519.28 x 0.23 = £1269.37 /year which is the same as £105.78 /month.
How can I reduce my Company Car Tax bill?
As you will have realised by now the lower the CO2 emissions of your car the lower the tax liability you have. When deciding upon which car to have look for low CO2 emitting cars. Diesels often have significantly lower CO2 emissions than their petrol counterparts. Also automatic gearboxes tend to increase fuel consumption,thus creating more CO2 emissions.
What about Diesel Euro 4 compliant engines?
A Euro 4 compliant engine has been developed and tested to meet the latest European emissions test regulations, offering greater performance and lower emissions. Because these engines pollute less the government will waive the 3% diesel loading supplement making the cars more attractive to a company car driver.
Budget Guide
Prices From: | Business: | Personal: |
| City | £121 | £124 |
| Family | £187 | £198 |
| Prestige | £293 | £324 |
| Sports | £209 | £229 |
| 4x4s | £236 | £253 |
| Not out of Reach Dream Cars | CALL | CALL |
