Company car vs private purchase?
Discussion
Graculus said:
I currently drive a Diesel (boo hiss) Passat Estate. It's a Sport, but not remotely sporty, is specced to the hilt (over £30k) and is fully maintenanced, tyres, servicing, everything. It would be lunacy to buy this as a private purchase but it costs me £170 per month in BIK. I reimburse my private fuel costs at about £40 per month so I'm all in for £200 pm.
"You pays your money and takes your choice". Just make sure you look at ALL the numbers first!
£200 plus whatever your car allowance would have been."You pays your money and takes your choice". Just make sure you look at ALL the numbers first!
If you do big personal miles a company car is the logical way to go.
havoc said:
Vee 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.
£84 ? How much cash allowance do you forgo for having the car ?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:
What cash allowance should I have taken in lieu. Given that I've already posted that my insurance alone is £4500 per annum. Then I've got to lease the car on top of that. And deal with all repairs. Unless I get a full maintained lease and a much higher cost?
Most companies offer an allowance instead. If yours doesn't, then you've a choice between having a nearly-free car or not. But you're probably in a minority...Re: insurance - you're unusual then - I've run Gp-20 sports cars for <<£1k a year.
Don't judge others by your own particular circumstances...
havoc said:
TwigtheWonderkid said:
What cash allowance should I have taken in lieu. Given that I've already posted that my insurance alone is £4500 per annum. Then I've got to lease the car on top of that. And deal with all repairs. Unless I get a full maintained lease and a much higher cost?
Most companies offer an allowance instead. If yours doesn't, then you've a choice between having a nearly-free car or not. But you're probably in a minority...Re: insurance - you're unusual then - I've run Gp-20 sports cars for <<£1k a year.
Don't judge others by your own particular circumstances...
I've just ordered a new company car, for which the BIK is about £41 per month. I tried to get a deal on the car allowance with no luck (aiming to run something more interesting with some of my own money in it). I figured I'd get the cheapest company car option for a few more pennies to go towards my own cars.
On the numbers side, a car allowance attracts tax and NI deductions, a company car only affects the tax you pay. In my situation I would have to lease/buy, insure, fuel and maintain a car on £231/month (approx difference between car allowance in and company car tax out), plus 29p/mile.
havoc said:
TwigtheWonderkid said:
What cash allowance should I have taken in lieu. Given that I've already posted that my insurance alone is £4500 per annum. Then I've got to lease the car on top of that. And deal with all repairs. Unless I get a full maintained lease and a much higher cost?
Most companies offer an allowance instead. If yours doesn't, then you've a choice between having a nearly-free car or not. But you're probably in a minority...Re: insurance - you're unusual then - I've run Gp-20 sports cars for <<£1k a year.
Don't judge others by your own particular circumstances...
TwigtheWonderkid said:
havoc said:
TwigtheWonderkid said:
What cash allowance should I have taken in lieu. Given that I've already posted that my insurance alone is £4500 per annum. Then I've got to lease the car on top of that. And deal with all repairs. Unless I get a full maintained lease and a much higher cost?
Most companies offer an allowance instead. If yours doesn't, then you've a choice between having a nearly-free car or not. But you're probably in a minority...Re: insurance - you're unusual then - I've run Gp-20 sports cars for <<£1k a year.
Don't judge others by your own particular circumstances...
Simple question was are you forgetting the car allowance you'd get otherwise ? Now, you may not have the choice but ordinarily there is usually an option.
With respect to your particular circumstances, of course it suits you to have a company car due to insuring your son. I no longer take a car but when I did they'd only insure over 25's on the company policy.
gizlaroc said:
Many companies won't even insure partners on the policy for anything other than pleasure.
So your wife isn't insured if she takes your car to work as hers is in the shop or something.
Ours are insured for any driver over 25. No real restrictions on use, other than the specifics of the business use. The cost was virtually the same as having named drivers on specific vehicles, and it makes our lives a lot easier.So your wife isn't insured if she takes your car to work as hers is in the shop or something.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff