£62k 2.0 Audi..... Company Car madness
Discussion
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?
Smart move or lunacy caused by balmy tax rules?
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
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
Edited by Limpet on Tuesday 1st September 14:05
In a "purchase" of this kind, does the theoretical list price ever actually matter, given that the sum of money involved has not, and will never, change hands.
It's all down to cost per month / mile at the end of the day.
Is a fwd 2.0 A6 WORTH £62k ............ of course not, is my answer. I too can think of hundreds of better ways to spend that cash.
Is a specced up A6 with £x per month on the company car scheme of your mate? .......... quite possibly.
It's all down to cost per month / mile at the end of the day.
Is a fwd 2.0 A6 WORTH £62k ............ of course not, is my answer. I too can think of hundreds of better ways to spend that cash.
Is a specced up A6 with £x per month on the company car scheme of your mate? .......... quite possibly.
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.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
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?
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.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
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?
theboss said:
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?
What if he does 40k miles a year and its purely for the mpg?Is there some other company policy at play, stating they will only order cars up to a certain CO2 category?
Nothing surprising there. If you spec an A4 to the same level as an equivalent A6 , se to se or s-line to to s-line, it will cost more or an A6 se up to s-line. Try specing a golf GT to the same level as a GTD that's a good one.
Anyone who thinks this is VAG catching up up with it's purchase of Porsche has a short memory of the days when a radio was an optional extra in a BMW!, Audi or Mercedes. It was the Japanese who taught everyone else a lesson in equipping cars. I had a Honda Quintet, mid 80's electric mirrors, electric sunshine roof, driver information etc etc. the Germans have come a long way on car specification but they are still the masters of up selling the extras and the profit
Anyone who thinks this is VAG catching up up with it's purchase of Porsche has a short memory of the days when a radio was an optional extra in a BMW!, Audi or Mercedes. It was the Japanese who taught everyone else a lesson in equipping cars. I had a Honda Quintet, mid 80's electric mirrors, electric sunshine roof, driver information etc etc. the Germans have come a long way on car specification but they are still the masters of up selling the extras and the profit
Jezzerh said:
robemcdonald said:
I was going to call custard on this until I loaded up the configurator. Looks like he wasn't trying hard enough with the options though.
Jesus CHRIST. Go on then, what options did you pick? Oh, all of them!Ares said:
Smart move or lunacy caused by balmy tax rules?
Personally I would say lunacy. What options did he "need" that badly?Only ask as I have a Golf GT which is decent spec and I'd genuinely struggle to think what it doesn't have that I'd have wanted in an ideal world, other than maybe the uprated audio system (joys of buying pre-registered).
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