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longtomsilver

Company Car Or Car Allowance/mileage Allowance?

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Company car could be something like a Mercedes C Class or Audi 5 Series with no private mileage. The other option is a paltry Car Allowance of £450 per month gross (higher rate tax payer) so ~£250 net.

Currently company car benefit equates to ~£200 tax per month.

Assuming 20,000 business miles per annum reimbursed at 45p first 10k and 25p latter 10k the sum total frees up £1,033 to run a private car.

So buy a new car (Mercedes A class from discount site) taking out a £15k loan (£230 a month) and using savings for the remainder (£7.5-10k) and be responsible for all running costs or go with the company car (the taxable car benefit has reliably increased (cost) over the years and forecast to be £260 in three years(effectively doubled in last 10 years))?

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Company car could be something like a Mercedes C Class or Audi 5 Series with no private mileage. The other option is a paltry Car Allowance of £450 per month gross (higher rate tax payer) so ~£250 net.

Currently company car benefit equates to ~£200 tax per month.

Assuming 20,000 business miles per annum reimbursed at 45p first 10k and 25p latter 10k the sum total frees up £1,033 to run a private car.

So buy a new car (Mercedes A class from discount site) taking out a £15k loan (£230 a month) and using savings for the remainder (£7.5-10k) and be responsible for all running costs or go with the company car (the taxable car benefit has reliably increased (cost) over the years and forecast to be £260 in three years(effectively doubled in last 10 years))?

Fools game running your own car for this mileage you need something comfortable also you will get bored doing 20,000 a year in an A class.

But have a look at sweet spot models.

Audi A3 New 1.4 TFSI SE 150PS - BIK tax £1545

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Have you gone and got yourself a job then? I thought you were kicking back on easy street subbed with a bit of bar work.

I agree with Greg - for 20k miles, let your company deal with it and go for something more drivable. I don't envy your miles.

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I predict this thread will soon be full of people telling you to buy a very old car, at least 10 years old and probably north of 90k miles, for not more than £1000 and probably less. You have to service it yourself (but don't worry, their ownership examples only needed a change of oil and new wiper blades in 75k miles of trouble-free motoring) and when it expires you can buy another old car. The jury will be split as to whether you buy an old V8 (never mind the atrocious mpg, you save far more in depreciation) or an old jap car preferably Honda or Toyota. You should pocket the car allowance and be quids in!

Absolutely do not buy a new Audi, only c0cks do that and they are a waste of money and have the wrong image.

(My suggestion? Post on a car forum.... :) )

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Once I took the allowance, otherwise it was a very boring lease car, with not enough engine. Actually I should have taken the "travel allowance" which was less, but didn't actually require me to run a car.

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I think you need to be clearer in terms of what you're trying to achieve. Whether money, status, comfort etc is the prime driver.

There is another old adage not mentioned, 'the cheapest car is usually the one you already have'.

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I think you need to be clearer in terms of what you're trying to achieve. Whether money, status, comfort etc is the prime driver.

There is another old adage not mentioned, 'the cheapest car is usually the one you already have'.

Absolutely, but I'm an HPC tightwad! :huh:

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I think you need to be clearer in terms of what you're trying to achieve. Whether money, status, comfort etc is the prime driver.

There is another old adage not mentioned, 'the cheapest car is usually the one you already have'.

It's not for me but a family member. We've done the status cars (without trying) to death and just want the most cost effective mode of transport with a corporate angle (can't be a ****heap). Thanks Gregg that's a nice example and worth noting in 3 years the BIK would be pushing £2,000 the taxation upwards march is relentless hence consideration to a private car that I might inherit. Old big engined cars aren't my cup of tea either I'd much prefer a mid CC'd motorcycle for kicks and I'll be getting a Suzuki GSXR600 next year.

:)

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Given you like the A3 look at a year old Seat Leon FR (its the same platform as is the golf and octavia - but a few of the bits may be slightly cheaper)...

You should be able to find one for £14,000 or so

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Honestly.. it mainly comes down to the buggeration factor.

Running you're own car usually works out a bit cheaper. On the other hand you have to bugger about with insurance, MOTs, servicing, tax plus you have to pay for the dents and scratches yourself.

The reason most people go for the company car option is just because it's easy.

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OK time to sort car;

Expected annual business mileage 32,000 which is reimbursed at 13 pence per mile (£346.50) Tax relief (the difference) comes to £194.60 (higher rate). Monthly Car allowance £529 gross £317.40 net) and not have to pay BIK on a £32k car at 21% year 1, 23% year 2 and 25% year 3 (~£275). I can get the same car new from a dealer via a website for £25,000 using a £15,000 loan at £200 a month over 7 years.

?Servicing £750 per annum

?Tyres £750

?Insurance £750

?Fuel £2,750 (500 gallons at a cautious £5.50)

Run in lieu of company car for 4 years and I inherit the car for the 3 remaining years selling for £5-6k.

Net month cost £625

Receive £1,133.50

Bank £500 x 48 = £24,000

Have I got this right?

It's a Mercedes C220D SE 7G Auto (had as a company car at last place).

Alternative is company car up to £750 a month (including servicing, tyres, insurance).

Thanks.

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Suzuki 600 ?

Yay !!

You read my mind. I'll be getting a Suzuki GSXR600 next spring and handing my lease car back end of next summer. This isn't for me and the car has to meet certain criteria (an A class isn't suitable).

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Wow ! You guys live in a different world to me . I have to buy my own cars!

Still it has nice seats! :(

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Wow ! You guys live in a different world to me . I have to buy my own cars!

Is that like Heseltine having to buy his own furniture?

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Is that like Heseltine having to buy his own furniture?

I've bought everything I have, even guitars

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