Company car or take the money and buy something interesting
Company car or take the money and buy something interesting
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Discussion

alan36

Original Poster:

498 posts

214 months

Thinking about taking the money instead of a car from next year. Our company cars have gone downhill somewhat. I get £500/m before tax and was contemplating getting a 20k loan and buying something like a Porsche Boxster 981.
This way the company basically buys the car for me.
Is this a good option or would it work out more costly?
I will do about 10k miles per year and maybe half of that will be business miles.

Muzzer79

13,196 posts

217 months

alan36 said:
Thinking about taking the money instead of a car from next year. Our company cars have gone downhill somewhat. I get £500/m before tax and was contemplating getting a 20k loan and buying something like a Porsche Boxster 981.
This way the company basically buys the car for me.
Is this a good option or would it work out more costly?
I will do about 10k miles per year and maybe half of that will be business miles.
Work out more costly than what?

What company car do you drive now? What mileage rate do you get?

What rate taxpayer are you on your £500/m?

Would your company be OK with you turning up for company business in a Porsche? Some will, I know mine wouldn't......

alan36

Original Poster:

498 posts

214 months

I have a Ford Kuga at the moment and am 40% tax. The company dont state I have to use any particular type of vehicle.

alan36

Original Poster:

498 posts

214 months

They pay 45p per mile for business use

Muzzer79

13,196 posts

217 months

alan36 said:
I have a Ford Kuga at the moment and am 40% tax.
OK. So you're clearing under £300 a month

A £20k loan over 5 years is £384 a month. You then have to maintain it, tax it, insure it. Call it an even £650 a month.

Unless your Kuga is costing you more than £260 a month in BIK, you're going to be worse off monthly.

But, in 5 years, you'll have a Porsche that's only done 50k miles than you bought it with and has been paid off.

Opting out works if you keep the car long term. Are you willing to do that with your Porsche?

alan36 said:
The company dont state I have to use any particular type of vehicle.
Yeah, but is your boss going to be happy with you doing business and turning up in a Porsche?

What the policy says and what the reality is can be different things......

alan36

Original Poster:

498 posts

214 months

I reckon the Kuga is costing me around the £250/m mark. A few of my colleagues have done this albeit not with a Prosche, they have BMW M340 and BMW X5m etc

PoorCarCollector

287 posts

50 months


Would you really want to run a Boxster through winter?

I guess it depends on your age / lifestyle etc.


alan36

Original Poster:

498 posts

214 months

I'm not completely stuck on a Porsche, just something different I suppose...RR L405 maybe

venster70

133 posts

68 months

A 981 Boxster is a great shout if you can "get away with it"

Get one with a minimum: "PDK / Bose / Heated seats / Dual climate" and any other options you feel you need.

You will have 10,000 smiles per year and never regret it.

Muzzer79

13,196 posts

217 months

Worth considering aswell that the cheapest Boxster 981 is in the classifieds for £22k. It's a 2013 car with 72k miles.

Do you want to be driving around for work (and maintaining) an 18 year old Porsche with 120k miles in 5 years' time?

alan36

Original Poster:

498 posts

214 months

I have had a 986 and 987 before so no real worry on the Porsche front. If maintained good enough they will run on no prob.

Josemartinez

1,008 posts

20 months

alan36 said:
They pay 45p per mile for business use
Are you paying Class 1 NIC on this as the advisory fuel rates for business miles in a company car is between 14 and 27p per mile?

Ricoh

20 posts

Yep Porsche are one of very few companies that allow their manufacturer extended warranty product to get extended up to 15 years old or 125k miles.

I'd take a look at a newer 718 than an ancient 981, it's a great commuter car and far more fun than another company car. Most company schemes seem to push EVs now for tax purposes. Efficient but very dull indeed.


alan36

Original Poster:

498 posts

214 months

Its 45p for the first 10k miles and then 25p for anything over this.
A 718 would need around £30k loan I would expect which is pushing it a bit tbh.

andrew-6xade

801 posts

33 months

Josemartinez said:
alan36 said:
They pay 45p per mile for business use
Are you paying Class 1 NIC on this as the advisory fuel rates for business miles in a company car is between 14 and 27p per mile?
I think he means when he opts out...

Ricoh

20 posts

alan36 said:
Its 45p for the first 10k miles and then 25p for anything over this.
A 718 would need around £30k loan I would expect which is pushing it a bit tbh.
Just remember these last petrol Porsches won't depreciate by much if it helps.. laugh



Poseidon

230 posts

164 months

I’d be buying the best £15k Model 3 I could find, pocketing the 45p mileage rate and putting it towards a nice weekend car.