£62k 2.0 Audi..... Company Car madness

[Ares]

My cousin has just picked up a new Company Car. A Front-Wheel-Drive Audi A6 Avant Ultra. Cost him/his business loose-change under £62,000. 3l BiTurbo? No. 187bhp 2.0 diesel. For £62,000. Same money would have got him a very similar S6, or the near equally specc'd 3l BiTurbo, but CO2 rules forced him into the 'ultra' to minimise his exposure whilst spec'ing it to a level he wanted.


Smart move or lunacy caused by balmy tax rules?

[Ares]

theboss said:

Limpet said:

Tax rules, pure and simple.

You don't have to venture too far up the CO2 scale in the company car world now before the tax bill meets or exceeds the cost of buying or leasing the car yourself. They ain't the perks they used to be, especially if chosen unwisely.

You wouldn't have to try too hard on the options list to get a £500 monthly tax bill on a 3.0 BiTDI

The problem with the OP's example is that the 2.0TDI in question will incur a sizeable BIK liablity by virtue of its list price, negating any 'saving' by sticking to a lower rate CO2 bracket. If the employee concerned is paying 40% tax then he's on the hook for £434/month tax/NI bill anyway.

If it's an S-line the BIK rate is 21% - the 3.0TDI (not bi-turbo) is 25%

Don't know about anyone else but I'd far rather a £50k list 3.0TDI than a £62k 2.0TDI for what amounts to a near identical BIK bill.

Is there some other company policy at play, stating they will only order cars up to a certain CO2 category?

Exactly. Hence a strong route to go. Plus he's the business owner....it could have been that he wants the impression of running a low-end model, but the 20" RS6 wheels and constantly talking about the 1200w stereo negates that...!

[Ares]

Mafffew said:

mat205125 said:

Dapster said:

If you have the means, then wafting about in a barge with EVERY toy on the list, listening to your £6k B&O sound system and doing 60mpg for only £400 month sounds like quite a nice plan - all in something that isn't going to ps off your clients or staff too much either.

The last part of that is very important to consider for many people.

I do agree with this to an extent.

However, an A6 is considered to be at the upper end of the Audi model range.

My boss had the same thought. Get something dark, not very flash, diesel, then have weekend toys.

Then went and bought a fully equipped 640d Gran Coupe.

Yes, very good. But it's still £70k+ worth of car... If you don't want to piss of customers, buy a bloody 3 Series, or an A3 or whatever generic saloon/hatchback. Don't buy a god damn luxury saloon.

There is a point at which if you turn up in a crap car, you give the impression to your customers that you are not doing well. A 320d/A3 would give that impression to me. I want my external 'business partners' to be good and successful. An ex-boss of mine back in the late-80s had a 993 RS. That was too flash, so he had 328i to go to client meetings in.

Personal opinion, for a director/business owner, a 640d GC sets the right tone between success and flashy/over-charging. Hence why I bought one

My cousins £60k A6 probably set a similar tone/impression. Looks impressive, only discloses it's underpinnings when you spot the Ultra badge.

[Ares]

jamiebae said:

Oilchange said:

Couldn't people just turn up in whatever they liked and park it round the corner?

Surely a smart cut suit and some talent would do the job?

Maybe I'm being naive in the fickle world but what business deal ever hinged on the question 'and finally, what car did you turn up in today?'

'Park it round the corner' isn't really practical in a lot of situations. If you're the MD, CEO, FD or similar of a medium or large company and turn up in a 3 series it doesn't give the impression that you're working for a successful company. If you arrive in a 5 year old Mondeo it says 'my business is in trouble' (albeit subconsciously) to some people and this matters when dealing with suppliers who you want to give you 90 day payment terms on six figure sums.

This. Exactly.

[Ares]

fido said:

Oilchange said:

Maybe I'm being naive in the fickle world but what business deal ever hinged on the question 'and finally, what car did you turn up in today?'

Indeed - would you want to do business with someone who paid £60k for a FWD 2.0 litre saloon?! My business would go to Honda Accord man. Having said that I don't make these sort of decisions ..

....and that may be WHY you don't

I do make those kind of decisions. My business goes to people who are good and successful and leading their field. Very few field-leaders drive a Honda Accord.