Company car vs private purchase?

[S8QUATTRO]

If you had the choice would you lease a new car for circa £400 a month or buy a used one with the car allowance?

With regards to buying one, £10k buys a really nice diesel motor, Audi A8, A6, Mercedes CLS, E, C class, Bmw 320 m sport, 520d etc. if you get a used car with an original high retail p11d value, what tax do you pay?

Will be doing 10 to 15k a year, not fussed about buying a high miler either

Thanks

[stumpage]

None of those options is a company car. They are different uses for a car allowance. A company car is paid for by the company, insured, maintained and repaired by the company. All you do is pay the BIK tax and fill it with private fuel.

[gizlaroc]

£249 a month for an M135i, £309 for a CLS250cdi shooting brake or £520 a month for an M5.

They are all including vat.

I know what I would do.

[gizlaroc]

M135i...

http://www.gateway2lease.com/z_bmw_m135i_m135imper...

[deltashad]

My company car is free (Romania). Just been upgraded to a new Land cruiser which is great.

If I had to pay out 400 ukp a month for a car that wasn't mine, I don't think I'd be taking that option. I also don't believe in PCP. When I buy a car I want it to belong to me.

[gizlaroc]

M5...

http://www.silverstonefleetmanagement.com/business...

Monthy gone down slightly but now deposit is 9 month rather than 6 months. But changing daily.

[gizlaroc]

deltashad said:

My company car is free (Romania). Just been upgraded to a new Land cruiser which is great.

If I had to pay out 400 ukp a month for a car that wasn't mine, I don't think I'd be taking that option. I also don't believe in PCP. When I buy a car I want it to belong to me.

But when you can hire one for £250 a month but it will loose £600 a month if you buy cash you would have to be an idiot to buy it.

[havoc]

If you're doing <15k a year I wouldn't be buying a diesel...

Lease deals - the headline numbers are before-options and (most importantly) usually with a 5k mileage limit. So add 20% to the numbers quoted above, at a guess...


I'd buy 2nd hand but if buying 'modern' I'd get a good warranty alongside it. Plan to keep for 3 years, so a £10k car costs ~£2k a year in dep'n + £1,500-2,000 a year in other non-petrol running costs (ins/tax/tyres/servicing/MOT/warranty).

Which is less than a leased car would...BUT possibly not massively less if you were set on having a brand-new car...

[Fun Bus]

stumpage said:

A company car is paid for by the company, insured, maintained and repaired by the company. All you do is pay the BIK tax and fill it with private fuel.

Some companies provide private fuel - the tax man of course loves this too.

[Matt UK]

If your opt out allowance is not precious about type/age of car and allows you to claim business miles at HMRC rates, then an older barge + toy is the way forward.

[gizlaroc]

CLS 250 cdi amg shooting brake..

http://www.contracthireandleasing.com/car-leasing-...

[gizlaroc]

Most company cars are pointless these days, the BIK tax is now working out more than the rentals on anything nice to own.
You are financially better off to say you don't want it and just buy it yourself, that is before even discussing an allowance in lieu.

[anonymous-user]

gizlaroc said:

deltashad said:

My company car is free (Romania). Just been upgraded to a new Land cruiser which is great.

If I had to pay out 400 ukp a month for a car that wasn't mine, I don't think I'd be taking that option. I also don't believe in PCP. When I buy a car I want it to belong to me.

But when you can hire one for £250 a month but it will loose £600 a month if you buy cash you would have to be an idiot to buy it.

So everyone that buys a new car is an idiot? What if you actually want to own it? Leasing is just car hire.

[deltashad]

gizlaroc said:

deltashad said:

My company car is free (Romania). Just been upgraded to a new Land cruiser which is great.

If I had to pay out 400 ukp a month for a car that wasn't mine, I don't think I'd be taking that option. I also don't believe in PCP. When I buy a car I want it to belong to me.

But when you can hire one for £250 a month but it will loose £600 a month if you buy cash you would have to be an idiot to buy it.

I wouldn't buy a car new, unless it was something I really wanted. Then, if it was something I really wanted I wouldn't be thinking about selling it on.
My dream is to have as many cars that I desire in my possession. Not to use a nice car which belongs to someone else then give it back.
I don't rent, it would be cheaper I'm sure.

Out of the four cars I own, two have depreciated (down 4.5k). one is stagnant and one has increased in value (6k).
I've had the costs of running and repairs but I'm 1.5k in the green and only one has remaining finance at about 3k.

Edited by deltashad on Wednesday 27th November 21:46

[Fun Bus]

gizlaroc said:

Most company cars are pointless these days, the BIK tax is now working out more than the rentals on anything nice to own.
You are financially better off to say you don't want it and just buy it yourself, that is before even discussing an allowance in lieu.

But then there is insurance and maintenance My company don't give any other alternative to a lease car - no allowance, nothing as an alternative.

[gizlaroc]

deltashad said:

I wouldn't buy a car new, unless it was something I really wanted. Then, if it was something I really wanted I wouldn't be thinking about selling it on.
My dream is to have as many cars that I desire in my possession. Not to use a nice car which belongs to someone else then give it back.
I don't rent, it would be cheaper I'm sure.

Then it doesn't apply to you.

For someone who wants a new car that has full warranty and only plans on keeping it 2-4 years it is all about the cheapest way to do it.

In the UK we are the worst for 'must own it' and owning a depreciating asset is stupid, unless of course that is the cheapest way, and then it is great. But these people who buy something that costs then far more than it would to hire it I just don't get.

[gizlaroc]

St John Smythe said:

So everyone that buys a new car is an idiot? What if you actually want to own it? Leasing is just car hire.

Touched a nerve have I?

If you want to own it great, pay loads more for the privilege. If you keep it 10 years it may even work out cheaper as an average.

New car sales are great for companies who can write it off against profits and claim half the vat back, but as a private individual you have to really want brand new to 'buy' something in these days of such cheap contract hire deals.

[gizlaroc]

Fun Bus said:

But then there is insurance and maintenance My company don't give any other alternative to a lease car - no allowance, nothing as an alternative.

But I think this is a bit of a cheek.

BIK tax is going up and overtaking the contract hire prices.

OK if you want some 2 litre diesel worth £25k I guess, but it is no longer much of a BIK, which is the whole reason you're taxed on it in the first place.

[anonymous-user]

gizlaroc said:

St John Smythe said:

So everyone that buys a new car is an idiot? What if you actually want to own it? Leasing is just car hire.

Touched a nerve have I?

If you want to own it great, pay loads more for the privilege. If you keep it 10 years it may even work out cheaper as an average.

New car sales are great for companies who can write it off against profits and claim half the vat back, but as a private individual you have to really want brand new to 'buy' something in these days of such cheap contract hire deals.

Not at all, you're the one that stated anyone who buys a new M5 is an 'idiot'. You'll probably find there are a few of them on here seeing its a motoring enthusiasts website

[deltashad]

If thats the case then maybe you're right, but I would be tempted to lease the cheapest thing I could lay my hands on to the job and use the rest of the money would go towards a toy.

I think people get wrapped up in spending too much money on cars that don't belong to them.