Discussion
Im going to talk to my boss next week about a business idea ive had where I will bring up the subject of a company car.I was wondering what if any advantage/disadvantage financially there would be by selecting a used/nearly new car over a brand new one ?
Thats assuming this option exists.
Did I post this in the right place ?
Thats assuming this option exists.
Did I post this in the right place ?
There's no advantge for the user; the BIK is based on the original new OTR price. The company is the benficiary because the purchase price/contract hire rates will be reduced.
We sometimes buy ex demo, very low mileage, high spec cars for senior staff. My two last BMWs have been dealer demonstrators with around 2000 miles at six months old.
We sometimes buy ex demo, very low mileage, high spec cars for senior staff. My two last BMWs have been dealer demonstrators with around 2000 miles at six months old.
There's no advantage to you as you pay tax based on the list price of the car when new.
There's an advantage you your employer as it'll cost them less, although not much less if they lease it, and it could be a lot more hassle.
Most people these days (both employers and employees) seem to prefer a cash allowance plus business mileage payments, although I think company cars do make sense for lots of people, especially those not paying higher rate tax.
There's an advantage you your employer as it'll cost them less, although not much less if they lease it, and it could be a lot more hassle.
Most people these days (both employers and employees) seem to prefer a cash allowance plus business mileage payments, although I think company cars do make sense for lots of people, especially those not paying higher rate tax.
530dTPhil said:
There's no advantge for the user; the BIK is based on the original new OTR price. The company is the benficiary because the purchase price/contract hire rates will be reduced.
We sometimes buy ex demo, very low mileage, high spec cars for senior staff. My two last BMWs have been dealer demonstrators with around 2000 miles at six months old.
Cheers PhilWe sometimes buy ex demo, very low mileage, high spec cars for senior staff. My two last BMWs have been dealer demonstrators with around 2000 miles at six months old.
I was also thinking that you could get into a higher spec car if used rather than new even if as you say the BIK is calculated on price when new.
Deva Link said:
There's no advantage to you as you pay tax based on the list price of the car when new.
There's an advantage you your employer as it'll cost them less, although not much less if they lease it, and it could be a lot more hassle.
Most people these days (both employers and employees) seem to prefer a cash allowance plus business mileage payments, although I think company cars do make sense for lots of people, especially those not paying higher rate tax.
Cheers thats certainly another option.There's an advantage you your employer as it'll cost them less, although not much less if they lease it, and it could be a lot more hassle.
Most people these days (both employers and employees) seem to prefer a cash allowance plus business mileage payments, although I think company cars do make sense for lots of people, especially those not paying higher rate tax.
Personally I see a comp car as a huge advantage, I effectively have access to a very nice, brand new, car I couldn't otherwise afford. And if you choose smartly it can be relatively cheap too, I mean mine is roughly 60 a month in cc tax and for that I get a fully spec'd 320D (ED) and I never have to pay a dime for tyres, maintenance etc etc
Granted I don't see the point if you went for a 335i which would cost the earth in tax....
Granted I don't see the point if you went for a 335i which would cost the earth in tax....
BIK tax to you - No difference between new and used.
Cost for what you get can be significant. Lease through a large company can, in many cases, be undercut by a local main dealer. Some used vehicles are non-VAT qualifying and this can have an impact.
Get the business to give you a budget for the cost of the car (except fuel) and work from there. You will need an estimated mileage, lease term and payment ratio (1+35 will be more than 3+33). You will also need to work out the maintenance options (full service, maintenace only or non-maintained).
Cost for what you get can be significant. Lease through a large company can, in many cases, be undercut by a local main dealer. Some used vehicles are non-VAT qualifying and this can have an impact.
Get the business to give you a budget for the cost of the car (except fuel) and work from there. You will need an estimated mileage, lease term and payment ratio (1+35 will be more than 3+33). You will also need to work out the maintenance options (full service, maintenace only or non-maintained).
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