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blobloblob

Work Related Car Allowance

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I've just left a job where I had a company car and am now starting a new one where I get a car allowance instead. £450 per month sounded OK to begin with until I realised it's just part of my salary and therefore taxed. On the positive side though (A) I get my personal allowance back and my company car was counted as £6.5K benefit in kind and (Bee) instead of 13p per mile that didn't even cover the cost of fuel on businss trips I not get 45p per mile, for the first 10,000 miles anyway. Interested to hear any tips. Failing that, amusing puns and anecdotes from anyone else in this position will do.

Average for me has been 12,000 personal and 10,000 business miles and I would guess that the new job will be broadly similar; I may find myself doing more business miles in the early days but could do fewer personal miles if nicked the wife's car more often. Overall split will be 1/3 each urban / A or B road / motorway. Mrs blobloblob has a big 4x4

So what do I do? There are no rules in my new job over the size or age of car. I can put in about £2,500 up front but honestly would prefer to put as little as possible in.

1)- Buy a used car on finance, say for example 3 to 4 year old Vauxhall Insignia over 3 years.

Pros - probably the least expensive. Up to me how many miles I do, how badly I screw it, whether I choose to smoke in it etc. Even after 3 years will still have a sale value or use as a trade in on the next one.

Cons - probably the most likely to break down

2)- Personal contract purchase

Pros - slightly lower monthly payments than just buying on finance. Probably under manufacturer warranty. I own a 3 year old car at the end which I can keep or sell.

Cons - the balloon payments at the end look stupidly high. Mileage limit or excess mileage charge. Need to put it through a body shop and proper valeter before returning it to avoid crazy fines.

3)- Personal lease

Pros - brand new car including maintenance, breakdown cover and tyres like a top end Volvo V40, Gold, Merc A Class for example under £400 per month

Cons - as per 2 except for the balloon payment, plus "Renting is just throwing money down the drain" :rolleyes:

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A 1972 Buick Riviera would suit you just fine!

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Well, if you put it that way, then option 2 is silly.

So its between option 1 and option 3

Option 1 - You get a used car - don't see why it has to be an Insignia, you could get something better surely like a jag XF or a 5-series Idiot Mobile? - that's 3 years old. After 3 years its paid off and you have a 6 year old car with probably a decade of motoring left in it.

Option 3 - You get a new car - flashy as hell but at the end of the day you won't have a car and might be stuck with a large final payment.

Option 1 is the sensible option.

Option 3 is the yolo option.

Up to you really....

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Yes option 1 for sure. I effectively did option 1 when I left my company car scheme, bought the car I had been driving for the previous three years in it, and kept it as my own for another three and a bit years (and counting).

I had the advantage that I knew exactly what I was buying but my car allowance is considerably less generous than yours!

Buy a good quality 2 or 3 year old car and it should run for three years with little to no problems. £450 a month and 45p a mile means driving it will probably make you money in that time.

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Forget the car allowance and just treat it as salary. Then make a decision based on your circumstances. Buying a brand new car is always a waste of money so it depends whether you have cash to burn. Buying a 2 year old car from an official dealer will feel as good as new and save you the worst of the depreciation.

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Well, if you put it that way, then option 2 is silly.

So its between option 1 and option 3

Option 1 - You get a used car - don't see why it has to be an Insignia, you could get something better surely like a jag XF or a 5-series Idiot Mobile? - that's 3 years old. After 3 years its paid off and you have a 6 year old car with probably a decade of motoring left in it.

Option 3 - You get a new car - flashy as hell but at the end of the day you won't have a car and might be stuck with a large final payment.

Option 1 is the sensible option.

Option 3 is the yolo option.

Up to you really....

I'm not going to buy an Insignia honestly. I was merely trying to illicit some sympathy.

It won't be option 2 for sure. People keep telling me to lease but I'm not so sure.

Brick? Is that like Starsky and Hutch or maybe the Dukes of Hazard?

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Don't scrimp the £450 will lease a lot of car/merc on a 3+23 plan. My wife had the same dilemma leaving a job and fully expensed car for an allowance and business mileage as per your post. She got a merc C220 with servicing for <£400 a month. The business mileage helps towards overall 'ownership' costs in our case adding a few hundred quid back to the pay packet.

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I get a big bung to run a car. For many years I simply trousered it and omitted to buy a car. No one could object as our Safe Transport policy said "use trains if possible" (which everyone ignored bar me). So the company paid me hundreds per month for a car I didn't have, paid for first class rail and taxis for business travel, and I cycled to work on a massively discounted cycle to work scheme bike. The icing on the cake was that I could also claim 20p per mile for business miles on the bike. I once did 100 miles riding to and from a conference.

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