Do I have to use my company car?
Discussion
I have just accepted a job offer and the role comes with a company car although there is almost zero travel required.
Having never had a company car I didn't want to ask the question to my new employer for fear of looking stupid, but do I have to take it?
I have worked hard to buy my current Porsche and I have zero intention of using my new 530D with the exception of maybe tip runs.
So am I within my rights to reject it? The base salary is competitive enough so I do not expect them to top it up.
Having never had a company car I didn't want to ask the question to my new employer for fear of looking stupid, but do I have to take it?
I have worked hard to buy my current Porsche and I have zero intention of using my new 530D with the exception of maybe tip runs.
So am I within my rights to reject it? The base salary is competitive enough so I do not expect them to top it up.
When I say rights, I just don't want the car.
You'll have to excuse me in the fact that I have very little knowledge of how the company car scheme works in the UK but no doubt it will end up costing me.
Given I do not want to stop driving my current car, I have no use for a company car and therefore don't want it.
I just want to be in possession of the facts before I approach it with my new employer.
You'll have to excuse me in the fact that I have very little knowledge of how the company car scheme works in the UK but no doubt it will end up costing me.
Given I do not want to stop driving my current car, I have no use for a company car and therefore don't want it.
I just want to be in possession of the facts before I approach it with my new employer.
Asking a question like "Am I within my rights to reject it?" is not the way to handle this.
Speak to your new company in a co-operative, non-threatening manner. Explain that due to the lack of company travel, you'd rather not take the perk of a company car.
Ask if you can have a car allowance instead.
If they say no, ask if you can have a salary top up to compensate for the lack of car. This does not need to be to the value of the benefit of the car, but should be a decent sum.
I'd be stunned if they don't take either of these options and choose to force a car on you instead.
You should have had this conversation when negotiating salary, terms, etc.
Speak to your new company in a co-operative, non-threatening manner. Explain that due to the lack of company travel, you'd rather not take the perk of a company car.
Ask if you can have a car allowance instead.
If they say no, ask if you can have a salary top up to compensate for the lack of car. This does not need to be to the value of the benefit of the car, but should be a decent sum.
I'd be stunned if they don't take either of these options and choose to force a car on you instead.
You should have had this conversation when negotiating salary, terms, etc.
SkinnyPete said:
....although there is almost zero travel required.
What sort of use are you thing of when you say "almost zero"? A 530d is a pretty hefty car to give as a perk without some discussion. They also might have a problem with you using a 911 for even the occasional business trip.Sheepshanks said:
What sort of use are you thing of when you say "almost zero"? A 530d is a pretty hefty car to give as a perk without some discussion. They also might have a problem with you using a 911 for even the occasional business trip.
He will have to pay for it via BIK, and if he is a 40% tax payer it could work out a few hundred a month to have a car he is not using 
It's very unusual for a company to just say 'here's a 530D'.
You'd usually choose from some kind of list (Although I do know some companies who have a 'business need' car - Sainsbury's give out Focus Zetecs and MFG give out Insignias).
If the car comes with the job, I'd find out if you can downgrade and take cash back. Some categories of job in my business can do this - if you don't travel more than 10k business miles / year, you can downgrade to the cheapest car on the list and have several hundred quid back per month.
If you are more restricted, then downgrading to a 520d would save lots of money in BIK per month. You'd save even more if you can get a 530e or 330e.
You'd usually choose from some kind of list (Although I do know some companies who have a 'business need' car - Sainsbury's give out Focus Zetecs and MFG give out Insignias).
If the car comes with the job, I'd find out if you can downgrade and take cash back. Some categories of job in my business can do this - if you don't travel more than 10k business miles / year, you can downgrade to the cheapest car on the list and have several hundred quid back per month.
If you are more restricted, then downgrading to a 520d would save lots of money in BIK per month. You'd save even more if you can get a 530e or 330e.
Some companies don't take to kindly to having Porsches (sports cars) parked in their car parks, especially if the site is likely to be visited by clients / suppliers etc.
Many years ago I had a near new 997 and started a new job, that came with a £10k car allowance.
I was promptly told by the "fleet team" - either I took one of their cars, bought another car that complied with the "company car policy" or forfeited my allowance.
No sports cars, must seat 4 adults, no convertibles, sub 4 years old and 100k miles.
Many years ago I had a near new 997 and started a new job, that came with a £10k car allowance.
I was promptly told by the "fleet team" - either I took one of their cars, bought another car that complied with the "company car policy" or forfeited my allowance.
No sports cars, must seat 4 adults, no convertibles, sub 4 years old and 100k miles.
Mgd_uk said:
He will have to pay for it via BIK, and if he is a 40% tax payer it could work out a few hundred a month to have a car he is not using
I've been out of this for a few years but it's hard to imagine that it makes sense now for a company to pay for something like a 530d when the employee has to pay tax on top as well. It can't be far off paying for the car twice.
Bristol spark said:
If they wont give you cash leu, Dump it in the work car park, and commute by Porsche.
Once it starts building up with grime, they may re-evaluate the situation.
Plus technically you would be exempt from BIK as no private use?
They're equally likely to re-evaluate the employee's continued employment for being a difficult to deal with aOnce it starts building up with grime, they may re-evaluate the situation.
Plus technically you would be exempt from BIK as no private use?
hole.SkinnyPete said:
I...
I have worked hard to buy my current Porsche and I have zero intention of using my new 530D with the exception of maybe tip runs...
... and that's where it's all gone wrong. The true Pistonheader uses his Porsche for tip runs. I have worked hard to buy my current Porsche and I have zero intention of using my new 530D with the exception of maybe tip runs...
Edited by anonymous-user on Monday 24th April 07:55
Depending on spec, in the 40% bracket you'd pay between £350 and £400 a month in tax to have the company car. That's a lot to spend on something you don't need.
The only reason I can think that the employer might get sticky about replacing the car with a salary equivalent, is if they don't like the thought of you in the company car park or client sites with a 911. That doesn't sound like something insurmountable.
The only reason I can think that the employer might get sticky about replacing the car with a salary equivalent, is if they don't like the thought of you in the company car park or client sites with a 911. That doesn't sound like something insurmountable.
As a Fleet manager there are one of two reasons you will have been given a company car.
The first: They believe the role you will be doing has a requirement to undertake business journeys and be client facing, hence the choice of car.
The second: They feel the job role is of such a standing that the market dictates that a company car of this type would be in keeping with the position.
Either way, if you don't want it, they you need to discuss with HR. The issue they will raise, and you will need an answer for, is how will you safely and legally undertake business journeys?
Can you demonstrate you have full business use insurance cover?
Does you vehicle undergo regular servicing?
And more importantly, how old is your Porsche? Some companies have an upper age limit on cars for business use as well as other criteria such as no convertibles and the car must be capable of carrying 4 adults.
First thing is talk to HR but have your answers ready for these questions.
The first: They believe the role you will be doing has a requirement to undertake business journeys and be client facing, hence the choice of car.
The second: They feel the job role is of such a standing that the market dictates that a company car of this type would be in keeping with the position.
Either way, if you don't want it, they you need to discuss with HR. The issue they will raise, and you will need an answer for, is how will you safely and legally undertake business journeys?
Can you demonstrate you have full business use insurance cover?
Does you vehicle undergo regular servicing?
And more importantly, how old is your Porsche? Some companies have an upper age limit on cars for business use as well as other criteria such as no convertibles and the car must be capable of carrying 4 adults.
First thing is talk to HR but have your answers ready for these questions.
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