Tuesday, 18 February 2014

Back of An Envelope Revelations

My three year long NHS lease car contract expires soon so the best way forward is to just take out a new one isn't it?  I fancy this little job here, Skoda's top of  the range Citigo in the rather fresh sounding Spring Green. All I need to do is pop in a request and the fleet manager will come up with the goods, a shiny new fresh smelling car.

Hang on a cotton picking minute though. There's two things stopping me.  Firstly, I'm not at all sure that I want to tie myself into a three year agreement with the NHS. Future plans could well involve beating a retreat to self  employment in the near future.  If you leave the scheme early there are hefty penalties, up to six months of the total rental costs paid by the Trust in first year.  Now, that's not to be ignored.  So, I wondered that with the higher mileage costs paid to people using their own cars, could it possibly be cheaper to go to Skoda and lease the exact same car with an inclusive service package myself?  After all their 0% finance deals seems second to none at the current time.  I got out my trusty spreadsheet and did the figurework based on an estimate for the same car that a friend had been given.

The short answer to the last question is yes it seems to be!  If anyone spots a glaring error please let me know.  And it doesn't seem a trifling amount either By my estimate, there's a cool annual £700 saving.  Plus I'd be buying the car as I was going along.  There's an option to pay a final balance at the end of the lease scheme.  And if I were to forego the idea of having a new car, and I'm thinking of a Seat Leon Sport with around 60,000 miles on the clock, the savings over a three year period on running that particular secondhand motor would pay for running the car outright.

The moral of this story isn't just for those in the same scheme as my own.  Of course, it applies to any regular expense that you might incur.  Is there a way of thinking creatively and reducing your overall costs so that there's more pennies to save or spend on lovelier things?

1 comment:

  1. I know that you will make the right decision, you are that type of woman.

    My car is fourteen years old and I have owned it for most of that time. I do not want to think about having to change it as I haven't driven a right-hand drive car for a lot of years. Bood luck with your future plans.