Company car vs private purchase?
Discussion
gizlaroc said:
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.
St John Smythe said:
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 
Just an idiot with money, but then if you aren't worried about the financial aspect of it good on them, I just couldn't enjoy it knowing I was spending twice as much as someone else. A new M5 is £74,000, after discount around £67,000.
At a year old they have lost £20,000, can be bought from BMW for £47k before haggling.
They reckon it will 'only' loose another £10000 in year 2.
So buy it cash it will cost you £1250 a month over the 2 years.
I reckon being realistic to get it down to the £650 a contract hire will cost you you would need to be in it for 7 years. And that is as a cash buyer.
Anyone who uses any finance and then gives it the big 'I want to own it' is talking cobblers.
Fun Bus said:
I couldn't afford to buy and run my company car for less than my monthly tax bill on both the car and all my fuel.
No, of course there are exceptions. But as a 'petrolhead' I think we can be in some very nice metal now for not much more than we pay in BIK tax if we take the allowance.
Not saying it will always be the cheapest option, just that it is worth looking at as you may be in something you love rather than something that 'does the job'.
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.
...and what if your job requires you to do 20k p.a., or 30k, or more?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.
Depreciation on anything respectable with that mileage is going to be huge, and then there's 2 services a year, insurance with that mileage will be quite a bit higher, etc. etc.
gizlaroc said:
I just couldn't enjoy it knowing I was spending twice as much as someone else.
You need to grow up then, and learn not to give a f
k what other people are doing, your life, live it how you want.Also you need to learn how to read contract hire deals properly, but that's just a minor point.
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.
Utter rubbish. Most company cars are a fantastic deal for the driver. The only time it becomes questionable is when you want to drive something high powered or really expensive, and even then it depends on the cash in lieu situation.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.
I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
TwigtheWonderkid said:
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.
Utter rubbish. Most company cars are a fantastic deal for the driver. The only time it becomes questionable is when you want to drive something high powered or really expensive, and even then it depends on the cash in lieu situation.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.
I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
TwigtheWonderkid said:
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.
Utter rubbish. Most company cars are a fantastic deal for the driver. The only time it becomes questionable is when you want to drive something high powered or really expensive, and even then it depends on the cash in lieu situation.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.
I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
I have a company car, with private fuel included. I pay nothing to run it whatsoever apart from my monthly tax bill, which is under £200.
Show me a £20k car that I can buy or lease myself, maintain, insure and fuel for under 200 quid a month.
It's a no-brainer and it's convenient.
I had a puncture a few weeks back - not my problem.
Servicing? Not my problem
Something breaks? Not my problem
If I get made redundant? I just hand it back and go to the next one - I'm not left with a depreciating asset sitting on the drive.
Muzzer79 said:
TwigtheWonderkid said:
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.
Utter rubbish. Most company cars are a fantastic deal for the driver. The only time it becomes questionable is when you want to drive something high powered or really expensive, and even then it depends on the cash in lieu situation.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.
I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
I have a company car, with private fuel included. I pay nothing to run it whatsoever apart from my monthly tax bill, which is under £200.
Show me a £20k car that I can buy or lease myself, maintain, insure and fuel for under 200 quid a month.
It's a no-brainer and it's convenient.
I had a puncture a few weeks back - not my problem.
Servicing? Not my problem
Something breaks? Not my problem
If I get made redundant? I just hand it back and go to the next one - I'm not left with a depreciating asset sitting on the drive.
Edited by TwigtheWonderkid on Thursday 28th November 09:32
I'm going into a new job soon that comes with an allowance. For at least the first 3 months of not the first 6 I'm going to go for long term car hire from Avis. I've been down the route of 3+36 deals before and the company cant guarantee they'll keep you there for 3 years, neither can they guarantee they'd take over the car payments if I was let go. All the risk would be on me, and with the job market in my sector being a bit volatile I dont want to take the chance.
My other option is forego the car allowance altogether and just claim fuel on my private car at a higher rate
My other option is forego the car allowance altogether and just claim fuel on my private car at a higher rate
havoc said:
...and what if your job requires you to do 20k p.a., or 30k, or more?
Depreciation on anything respectable with that mileage is going to be huge, and then there's 2 services a year, insurance with that mileage will be quite a bit higher, etc. etc.
I was doing 30k miles and opted out. Still was in a much nicer car than the company choices. Depreciation on anything respectable with that mileage is going to be huge, and then there's 2 services a year, insurance with that mileage will be quite a bit higher, etc. etc.
But I see so many people who only do 10k miles a year jump into a company car and pay more in BIK tax than they could lease the car for privately.
It is all about weighing up what is best for you and not just doing what your told.
berlintaxi said:
You need to grow up then, and learn not to give a fk what other people are doing, your life, live it how you want.
Also you need to learn how to read contract hire deals properly, but that's just a minor point.
Haha, steady on treacle. k what other people are doing, your life, live it how you want.Also you need to learn how to read contract hire deals properly, but that's just a minor point.
If your happy to pay twice as much as the next man for things in life that is great, but I am allowed to begrudge paying twice as much as well.
I have done so many contract hire deals I think I know how they work.
TwigtheWonderkid said:
Utter rubbish. Most company cars are a fantastic deal for the driver. The only time it becomes questionable is when you want to drive something high powered or really expensive, and even then it depends on the cash in lieu situation.
I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
And again that is my point, you have made it work for you. I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
But when people are talking about jumping into BMWs, Mercs and Audis at £40k they need to do some proper sums.
What is it you're in for £84 a month at 40%?
gizlaroc said:
berlintaxi said:
You need to grow up then, and learn not to give a fk what other people are doing, your life, live it how you want.
Also you need to learn how to read contract hire deals properly, but that's just a minor point.
Haha, steady on treacle. k what other people are doing, your life, live it how you want.Also you need to learn how to read contract hire deals properly, but that's just a minor point.
If your happy to pay twice as much as the next man for things in life that is great, but I am allowed to begrudge paying twice as much as well.
Muzzer79 said:
+1
I have a company car, with private fuel included. I pay nothing to run it whatsoever apart from my monthly tax bill, which is under £200.
Show me a £20k car that I can buy or lease myself, maintain, insure and fuel for under 200 quid a month.
It's a no-brainer and it's convenient.
I had a puncture a few weeks back - not my problem.
Servicing? Not my problem
Something breaks? Not my problem
If I get made redundant? I just hand it back and go to the next one - I'm not left with a depreciating asset sitting on the drive.
So for you it is worth it for piece of mind. I have a company car, with private fuel included. I pay nothing to run it whatsoever apart from my monthly tax bill, which is under £200.
Show me a £20k car that I can buy or lease myself, maintain, insure and fuel for under 200 quid a month.
It's a no-brainer and it's convenient.
I had a puncture a few weeks back - not my problem.
Servicing? Not my problem
Something breaks? Not my problem
If I get made redundant? I just hand it back and go to the next one - I'm not left with a depreciating asset sitting on the drive.
What car is it?
How many miles for work and for pleasure?
gizlaroc said:
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.
Edited by stumpage on Thursday 28th November 10:29
gizlaroc said:
TwigtheWonderkid said:
Utter rubbish. Most company cars are a fantastic deal for the driver. The only time it becomes questionable is when you want to drive something high powered or really expensive, and even then it depends on the cash in lieu situation.
I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
And again that is my point, you have made it work for you. I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
But when people are talking about jumping into BMWs, Mercs and Audis at £40k they need to do some proper sums.
What is it you're in for £84 a month at 40%?
gizlaroc said:
TwigtheWonderkid said:
Utter rubbish. Most company cars are a fantastic deal for the driver. The only time it becomes questionable is when you want to drive something high powered or really expensive, and even then it depends on the cash in lieu situation.
I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
And again that is my point, you have made it work for you. I have a company car. List price £20K, it costs me £84/month as a 40% tax payer. If I was a standard rate tax payer it would only cost me £42/month. For a £20K car, insured in London, for any driver including my 17 y/o son, all repairs and maintenance paid for. The only thing I have to pay is private fuel, and my car averages 60 mpg anyway! The only down side is that it isn't an exciting car.
The other benefit of a company car, regardless of what it is, is that it's a fixed cost. You know exactly what it's going to cost you every month, for 3yrs in advance.
But when people are talking about jumping into BMWs, Mercs and Audis at £40k they need to do some proper sums.
What is it you're in for £84 a month at 40%?
Gassing Station | General Gassing | Top of Page | What's New | My Stuff