Weird company car criteria
Discussion
I just started a new job and the company car offer is as follows
12k to spend
Be below 45,000 miles
No older than 4 years old.
No list of cars to pick you basically have this criteria and you have to get it from a the manufactures dealership, ie no ebay cars or private sales has to be from an official dealer.
Seems a bit odd but i guess i works out cheaper for them as apposed to buying a fleet of brand new cars.
Anyway i don't have any real criteria tbh i already have a diesel on the drive along with a 135i so i may as well take advantage of this and try and get something fun or maybe even a nice barge although im struggling because cars that drop to 12k in 4 years don't seem to be very good ones lol any suggestions?
12k to spend
Be below 45,000 miles
No older than 4 years old.
No list of cars to pick you basically have this criteria and you have to get it from a the manufactures dealership, ie no ebay cars or private sales has to be from an official dealer.
Seems a bit odd but i guess i works out cheaper for them as apposed to buying a fleet of brand new cars.
Anyway i don't have any real criteria tbh i already have a diesel on the drive along with a 135i so i may as well take advantage of this and try and get something fun or maybe even a nice barge although im struggling because cars that drop to 12k in 4 years don't seem to be very good ones lol any suggestions?
Slow said:
Get rid of your own diesel and just get a company diesel?
This is probably the best optionIts a pretty strange criteria though and does seem oddly restrictive. Something like a VW Golf Match 1.6 TDI on a 10 or 11 plate is probably the best option. Boring perhaps but tax and fuel efficient.
Slow said:
But with the money gained from selling your own diesel you could buy a interesting car thats over 4 years old?
My diesel is only worth around 4k the plus side to the company car is free insurance they pay so much of the tax and fuel and have their own private warranty company. I can't get the tax and fuel on my own car unless its no older than 7 years which it isn't.TheBurgerKing said:
My diesel is only around 4k the plus side to the company car is free insurance they pay so much of the tax and fuel and have their own private warranty company. I can't get the tax and fuel unless my own car is no older than 7 years which it isn't.
They might pay the car/VED tax... But what about your BIK tax...? Have they explained your liabilities? It could be quite high.
Grenoble said:
TheBurgerKing said:
My diesel is only around 4k the plus side to the company car is free insurance they pay so much of the tax and fuel and have their own private warranty company. I can't get the tax and fuel unless my own car is no older than 7 years which it isn't.
They might pay the car/VED tax... But what about your BIK tax...? Have they explained your liabilities? It could be quite high.GadgeS3C said:
^This - IIRC you'll be driving an "old" car but still paying tax as if it were a new one. Nice win for your employer - not so good for you.
Right - it's based on list price of the vehicle as originally delivered?So a car that costs the company 11k, and sits as a deoreciating asset for 3 yrs cats them relatively little. If that car cost £40k then the monthly BIK tax would be horrible.....
Grenoble said:
I'm struggling to see how this works for them.
Companies very rarely want the asset on their books - hence lease schemes.
Very odd... How would your tax / BIK work on a used company car?
It's not having the asset that's the issue it's having the cash to acquire the asset.Companies very rarely want the asset on their books - hence lease schemes.
Very odd... How would your tax / BIK work on a used company car?
GadgeS3C said:
^This - IIRC you'll be driving an "old" car but still paying tax as if it were a new one. Nice win for your employer - not so good for you.
Nothing "nice" about that for the employer - they pay employers NIC on the value of the employee's BiK.As said, tax is charged based on the manufacturer's list price on the day prior to first registration and the CO2 emissions of the car, just like any other company car except you are driving an older car.
The only advantage to the employer here is that they are limiting their costs quite a lot - try and get an acceptable car brand new for £12k - this way, you atleast have the choice of cheap and cheerful or a bit of junior bangernomics.
GoneAnon said:
Nothing "nice" about that for the employer - they pay employers NIC on the value of the employee's BiK.
As said, tax is charged based on the manufacturer's list price on the day prior to first registration and the CO2 emissions of the car, just like any other company car except you are driving an older car.
The only advantage to the employer here is that they are limiting their costs quite a lot - try and get an acceptable car brand new for £12k - this way, you atleast have the choice of cheap and cheerful or a bit of junior bangernomics.
But the employee will be liable for higher tax based on the list price, not the purchase price by his company? As said, tax is charged based on the manufacturer's list price on the day prior to first registration and the CO2 emissions of the car, just like any other company car except you are driving an older car.
The only advantage to the employer here is that they are limiting their costs quite a lot - try and get an acceptable car brand new for £12k - this way, you atleast have the choice of cheap and cheerful or a bit of junior bangernomics.
Grenoble said:
But the employee will be liable for higher tax based on the list price, not the purchase price by his company?
I think I said that, and that means the employer pays the same employer's NIC as he would if he had provided a new car (allowing for any list price inflation).This is just the employer limiting their purchase price but giving drivers some options that they wouldn't get in most jobs.
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