Going from own car to company car - experiences?
Discussion
I currently have an Audi S3 Sportback (S-Tronic), which is about 2.5 years old and is our sole family car.
I moved jobs earlier this year and my business mileage is rising - I mostly travel by train, but will still do 6-10k this year by car. The mileage rates are punitive after 3,500 miles to encourage take-up of the lease car scheme and I'd make a loss on running my S3 after this. Our non-work family milegage is about 6k per annum.
The lease scheme can be very competitive compared to buying / leasing a new car privately, so long as a I stick to low CO2 cars (thanks to Benefit In-Kind tax). I've been looking at quotes for top spec Volvo V60 D5s, Audi A4s, Merc C220s etc - one of these would save me about £2-3k per annum over running the S3, for a full maintenance contract with insurance.
Would I be massively disappointed going from my S3 to one of these cars? Does anyone else have some experience to share?
I moved jobs earlier this year and my business mileage is rising - I mostly travel by train, but will still do 6-10k this year by car. The mileage rates are punitive after 3,500 miles to encourage take-up of the lease car scheme and I'd make a loss on running my S3 after this. Our non-work family milegage is about 6k per annum.
The lease scheme can be very competitive compared to buying / leasing a new car privately, so long as a I stick to low CO2 cars (thanks to Benefit In-Kind tax). I've been looking at quotes for top spec Volvo V60 D5s, Audi A4s, Merc C220s etc - one of these would save me about £2-3k per annum over running the S3, for a full maintenance contract with insurance.
Would I be massively disappointed going from my S3 to one of these cars? Does anyone else have some experience to share?
BMW tends to win in the BiK stakes and are nice enough to drive. I've driven most of the the 2.0 diesel boxes over the years - and if I'm honest they all start to feel the same. Pick the one with the toys you like, the most comfy driving position and costs you the least.
Company cars are good in that you get them new, can just drive them whilst caring very little about them and let someone else pick up the tab for all work required.
Downside is that nowadays moat companies want you to stay in them for 4 years, which would bore me silly. Mate of mine said his company is extending their terms to 5 years to try and save on costs. That is a bloddy long time..
Company cars are good in that you get them new, can just drive them whilst caring very little about them and let someone else pick up the tab for all work required.
Downside is that nowadays moat companies want you to stay in them for 4 years, which would bore me silly. Mate of mine said his company is extending their terms to 5 years to try and save on costs. That is a bloddy long time..
I'm keen on the new A3 Sportback (possibly with said 1.8T), but it isn't available to order through the lease scheme yet - and I'd surely be looking at a 7-8 month wait for one.
My ideal is to hear from someone who's gone from a performance-orientated car to a rep box and to hear what they have to say about the experience!
My ideal is to hear from someone who's gone from a performance-orientated car to a rep box and to hear what they have to say about the experience!
Basil Hume said:
My ideal is to hear from someone who's gone from a performance-orientated car to a rep box and to hear what they have to say about the experience!
I had a Co. car forced onto me in my first job after my MD said "You have the oldest car in the car park"
I replied "And the fastest"
I was forced into a Rover 214 from my Integrale Turbo
Needless to say I attempted to destroy it and managed to get through front tyres in IIRC 3k and sub 30mpg which takes some doing in a 1.4 !
The fleet managers sent reports with "Abuse" stamped all over them and I replied that I treated it in exactly the same way as my own cars - if they weren't happy I'd happily give it back - which I wasn't allowed to do.
Needless to say I left within a year.
Never understood the logic of driving dross everyday when you have something nice in a garage.
I drove a 1.6 diesel Peugeot 508 this week. Relevant to you as it's a small engine, Benefit in Kind efficient.
Car drove surprisingly well, enough toys, and cruised well up to 90 and beyond. Bit slow getting there, and should have had a six gear box.
Fuel consumption was OK at 48, but it suffered from high speed motorway runs, whereas a larger engine would probably be more efficient.
Car drove surprisingly well, enough toys, and cruised well up to 90 and beyond. Bit slow getting there, and should have had a six gear box.
Fuel consumption was OK at 48, but it suffered from high speed motorway runs, whereas a larger engine would probably be more efficient.
My experiences as follows.
I went from a sucession of high performance cars to a eurobox company car that came with the job... no cash alternative.... If I had been a non petrol head it would have saved me a fortune... Unfortunatly 10k per year of dullness was quite frankly draining all the car enthusiast out of me.. So I went out and bought a weekend car...Not any weekend car, I went for the ultimate anecdote to counteract the diesel..... a stripped out westfield, r888's, 300bhp/ton...
All was well for a year but after a while everytime I got into the eurobox I just wished I was in the westfield... and after doing 2000 miles per month in the eurobox I can't be arsed to strap myself into it of an evening just to drive for pleasure..
So im now considering sacking off the westfield and the company car and buying a Clio 200 or similar that I can enjoy everyday..
I went from a sucession of high performance cars to a eurobox company car that came with the job... no cash alternative.... If I had been a non petrol head it would have saved me a fortune... Unfortunatly 10k per year of dullness was quite frankly draining all the car enthusiast out of me.. So I went out and bought a weekend car...Not any weekend car, I went for the ultimate anecdote to counteract the diesel..... a stripped out westfield, r888's, 300bhp/ton...
All was well for a year but after a while everytime I got into the eurobox I just wished I was in the westfield... and after doing 2000 miles per month in the eurobox I can't be arsed to strap myself into it of an evening just to drive for pleasure..
So im now considering sacking off the westfield and the company car and buying a Clio 200 or similar that I can enjoy everyday..
I love my company car – it saves me a fortune!
I had a reasonably quick and thirsty car for 5 years - an X-Type 3.0 AWD Manual. Below is a running costs comparison:
Jag X-Type 3.0 AWD 12,000 miles per year commuting + business miles
Depreciation £1000/year during my ownership of 5 years
Fuel £2500/year
Insurance £600/year
Service £400/year
Repairs £300/year (O2 sensors, brakes, transfer box rebuild, etc)
MOT £40/year
Oil/Fluids £40/year
Tyres £200/year (seemed to pick up nails quite often!)
VED £240/year
AA Member £99/year (inc home start, etc)
========
TOTAL £5419/year to run the X-Type
However,
Company car Passat 2.0TDi (140)
Company car tax £780/year
=========
TOTAL £780/year to run the Passat, all in!
No extra costs! No insurance, VED, repairs, servicing costs, tyre costs. Even at just 15p per mile, business travel reimbursement costs cover all my works + private Diesel costs as long as I get above about 52 mpg. Car comes with VW assist so I ditched my AA membership.
For my long motorway journeys, I think the Passat is a great workhorse. Very comfortable, decent kit, cruise, etc.
Quids in!
I had a reasonably quick and thirsty car for 5 years - an X-Type 3.0 AWD Manual. Below is a running costs comparison:
Jag X-Type 3.0 AWD 12,000 miles per year commuting + business miles
Depreciation £1000/year during my ownership of 5 years
Fuel £2500/year
Insurance £600/year
Service £400/year
Repairs £300/year (O2 sensors, brakes, transfer box rebuild, etc)
MOT £40/year
Oil/Fluids £40/year
Tyres £200/year (seemed to pick up nails quite often!)
VED £240/year
AA Member £99/year (inc home start, etc)
========
TOTAL £5419/year to run the X-Type
However,
Company car Passat 2.0TDi (140)
Company car tax £780/year
=========
TOTAL £780/year to run the Passat, all in!
No extra costs! No insurance, VED, repairs, servicing costs, tyre costs. Even at just 15p per mile, business travel reimbursement costs cover all my works + private Diesel costs as long as I get above about 52 mpg. Car comes with VW assist so I ditched my AA membership.
For my long motorway journeys, I think the Passat is a great workhorse. Very comfortable, decent kit, cruise, etc.
Quids in!
Not quite the way round you are thinking of, but I have just come out of a company-leased BMW 135i. Generally, the leasing experience is positive: depending on the terms, your only additional cost is fuel. However, I found the lack of control annoying. Examples:
- As winter closed in last year, I had 3mm of tread on the rear tyres. Even with the DSC on, it was pretty wayward in the wet, particularly if it was cold. I was not allowed to change the tyres until they were down to 2mm, which was dangerous in my book. Others might disagree, but I think 300bhp through the rear wheels with 2mm of tread is dodgy in winter (if occasionally amusing).
- Although it was a lease car, I looked after it as if I had bought it. In fact, the chap who collected it on Monday complimented me on its condition. That said, there were two alloys with scuffs on and it bothered me every time I looked at them. But I was not allowed to have them repaired, unless I wanted to incur the cost myself. I did so once, but decided against it afterwards.
In all other respects, it was a good thing. And it stopped me changing my car every 5 minutes, which is probably for the better too.
You might find a Mondeo more interesting to drive than some of the German offerings, 320d aside. That said, the premium marques can be good value to lease, because of their generally better residuals.
Andy
- As winter closed in last year, I had 3mm of tread on the rear tyres. Even with the DSC on, it was pretty wayward in the wet, particularly if it was cold. I was not allowed to change the tyres until they were down to 2mm, which was dangerous in my book. Others might disagree, but I think 300bhp through the rear wheels with 2mm of tread is dodgy in winter (if occasionally amusing).
- Although it was a lease car, I looked after it as if I had bought it. In fact, the chap who collected it on Monday complimented me on its condition. That said, there were two alloys with scuffs on and it bothered me every time I looked at them. But I was not allowed to have them repaired, unless I wanted to incur the cost myself. I did so once, but decided against it afterwards.
In all other respects, it was a good thing. And it stopped me changing my car every 5 minutes, which is probably for the better too.
You might find a Mondeo more interesting to drive than some of the German offerings, 320d aside. That said, the premium marques can be good value to lease, because of their generally better residuals.
Andy
Some very valid points there Andy. I went from a Leon Cupra R into a company car.... A mk 6 Golf Tdi, the beast of a 110 bhp SE model. Did 65,000 miles in it in three years.
Plus points:
It's fixed price motoring. I had a fuel card which covered private fuel so the only cost was the tax and loss in car allowance.
It's nice to have a brand new car that isn't your problem. Drink after work? Just leave it parked up and collect it the next day.
Maintenance is no issue other than the inconvenience of taking it in.
I paid no attention whatsoever to driving economically. I did many a late night high speed run back from places.
This lack of regard for tyres, fuel, mechanical sympathy made it a fun car to have.
I drove it on Europe a few times and all the way to Berlin once and it was a cracking car.
Bad points:
The lease company my company used did their own maintenance, they we're weapons grade bell ends. They insisted on putting s
te tyres on it, squeaky pattern part brakes, incorrect resetting of the service light etc etc. made it a chore.
I totally agree on the tyre comment above. Wouldn't change them until 2mm tread. Was a nightmare in the winter.
I owned it through the two big winters of 2010/11. Would have put winter tyres on it if it was mine. Wasn't able to.
It's a commitment. You can't get out of it and the monthly tax costs without getting a new job.
It wasn't a quick car.
Hope that helps a bit.
Plus points:
It's fixed price motoring. I had a fuel card which covered private fuel so the only cost was the tax and loss in car allowance.
It's nice to have a brand new car that isn't your problem. Drink after work? Just leave it parked up and collect it the next day.
Maintenance is no issue other than the inconvenience of taking it in.
I paid no attention whatsoever to driving economically. I did many a late night high speed run back from places.
This lack of regard for tyres, fuel, mechanical sympathy made it a fun car to have.
I drove it on Europe a few times and all the way to Berlin once and it was a cracking car.
Bad points:
The lease company my company used did their own maintenance, they we're weapons grade bell ends. They insisted on putting s
te tyres on it, squeaky pattern part brakes, incorrect resetting of the service light etc etc. made it a chore.I totally agree on the tyre comment above. Wouldn't change them until 2mm tread. Was a nightmare in the winter.
I owned it through the two big winters of 2010/11. Would have put winter tyres on it if it was mine. Wasn't able to.
It's a commitment. You can't get out of it and the monthly tax costs without getting a new job.
It wasn't a quick car.
Hope that helps a bit.
otherman said:
FreeLitres said:
Company car Passat 2.0TDi (140)
Company car tax £780/year
=========
TOTAL £780/year to run the Passat, all in!
Your company pay petrol on private milage too? I thought those deals died 20 years agoCompany car tax £780/year
=========
TOTAL £780/year to run the Passat, all in!
As long as I get over around 52 mpg, the milege payment is over what the fuel costs me. For example, I might spend £50 cash on a business trip diesel then £5 diesel going to Tesco a few times but the 15p per mile will pay me about £55.
FreeLitres said:
Company car Passat 2.0TDi (140)
Company car tax £780/year
=========
TOTAL £780/year to run the Passat, all in!
Quids in!
£65 per month! Are you sure that's correct? I guess it must be a 1.6 blue motion with incredibly low CO2 and you are a lower rate tax payer. Company car tax £780/year
=========
TOTAL £780/year to run the Passat, all in!
Quids in!
I have a 520d (129 CO2) and do get private fuel paid for by my company but my monthly cost in BIK works out at £350 per month.
A900ss said:
£65 per month! Are you sure that's correct? I guess it must be a 1.6 blue motion with incredibly low CO2 and you are a lower rate tax payer.
I have a 520d (129 CO2) and do get private fuel paid for by my company but my monthly cost in BIK works out at £350 per month.
That's correct for a Passat 2.0TDI Highline Bluemotion.I have a 520d (129 CO2) and do get private fuel paid for by my company but my monthly cost in BIK works out at £350 per month.
They're incredibly tax efficient these days - especially if you don't have private fuel and are a lower rate tax payer. (And contrary to what a lot seem to think around here, it's entirely possible to live a comfortable life on lower rate tax!)
My tax bill is only £487!
Mine isn't the full Bluemotion spec as I wanted the extra toys. Mine is a 2.0 SE "With Bluemotion Technology"
Mine most definately only costs me £65 a month. I have even calculated it out from the tax on my payslip!
Basic figures from Comcar (without options added): http://www.comcar.co.uk/newcar/companycar/taxcalc/...
Passat 2.0 TDi
Annual car tax @ 20% tax payer: £760
or @ 40% tax payer: £1520
BMW 520D M Sport Auto (Most expensive 520d I could find on list)
Annual car tax @ 20% tax payer: £1322
or @ 40% tax payer: £2645 per year
This is £220 a month for the high spec 520d. Of course if yours has loads of extras, the tax will increase.
Mine most definately only costs me £65 a month. I have even calculated it out from the tax on my payslip!
Basic figures from Comcar (without options added): http://www.comcar.co.uk/newcar/companycar/taxcalc/...
Passat 2.0 TDi
Annual car tax @ 20% tax payer: £760
or @ 40% tax payer: £1520
BMW 520D M Sport Auto (Most expensive 520d I could find on list)
Annual car tax @ 20% tax payer: £1322
or @ 40% tax payer: £2645 per year
This is £220 a month for the high spec 520d. Of course if yours has loads of extras, the tax will increase.
FreeLitres said:
Mine isn't the full Bluemotion spec as I wanted the extra toys. Mine is a 2.0 SE "With Bluemotion Technology"
Mine most definately only costs me £65 a month. I have even calculated it out from the tax on my payslip!
Basic figures from Comcar (without options added): http://www.comcar.co.uk/newcar/companycar/taxcalc/...
Passat 2.0 TDi
Annual car tax @ 20% tax payer: £760
or @ 40% tax payer: £1520
BMW 520D M Sport Auto (Most expensive 520d I could find on list)
Annual car tax @ 20% tax payer: £1322
or @ 40% tax payer: £2645 per year
This is £220 a month for the high spec 520d. Of course if yours has loads of extras, the tax will increase.
£760 is a total bargain. Mine most definately only costs me £65 a month. I have even calculated it out from the tax on my payslip!
Basic figures from Comcar (without options added): http://www.comcar.co.uk/newcar/companycar/taxcalc/...
Passat 2.0 TDi
Annual car tax @ 20% tax payer: £760
or @ 40% tax payer: £1520
BMW 520D M Sport Auto (Most expensive 520d I could find on list)
Annual car tax @ 20% tax payer: £1322
or @ 40% tax payer: £2645 per year
This is £220 a month for the high spec 520d. Of course if yours has loads of extras, the tax will increase.
My 520d is there or thereabouts the figures you have quoted above but I also have the BIK charge for my free fuel on top which takes it to the £350 I mentioned earlier.
Edited by A900ss on Saturday 20th October 11:21
Company cars can be very cheap!
A 1.2 TDi Polo Bluemotion only costs £412 car tax per year! That would barely cover the insurance costs for most cars, let alone the tax, repairs, servicing etc.
I wanted something as cheap to run as possible for business use, but I had to draw the line somewhere!
A 1.2 TDi Polo Bluemotion only costs £412 car tax per year! That would barely cover the insurance costs for most cars, let alone the tax, repairs, servicing etc.
I wanted something as cheap to run as possible for business use, but I had to draw the line somewhere!
A900ss said:
£760 is a total bargain.
My 520d is there or thereabouts the figures you have quoted above but I also have the BIK charge for my free fuel on top which takes it to the £350 I mentioned earlier.
For a 20% tax payer a company car is an absolute no-brainer.My 520d is there or thereabouts the figures you have quoted above but I also have the BIK charge for my free fuel on top which takes it to the £350 I mentioned earlier.
Yours is relatively high as the private fuel cost adds a lot now (for many it's not worth it) and then the whole payment is doubled as you're paying tax at 40%.
I opted out some years ago and, as a couple of other people have mentioned, tyres where a significant part of that decision. Years ago you would work around it by getting them done at a friendly place on a Sunday when the lease company was closed, but they've really tightened up on that. I had tyres worn flush to the treadwear indicators refused as the fitter measured them at 3mm. Lease company said if I wanted them changed I could pay for them myself!
That sort of thing does mean that you end up not giving a toss about the car. Don't get me wrong, I looked after mine, but you stop worrying about where you park it and if it makes a funny noise you just turn the radio up.
Edited by Deva Link on Saturday 20th October 11:57
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