Company car dilema, what to get?
Discussion
Does your company offer allow you to opt out of the company car scheme and provide a cash equivalent instead?
To provide you with an STI must cost them 5-6k per year.
That could be 4k in you pocket instead, you then don't have to pay the 7k in company car tax.
So you can then spend 11k a year on a car privately and be no worse off.
To provide you with an STI must cost them 5-6k per year.
That could be 4k in you pocket instead, you then don't have to pay the 7k in company car tax.
So you can then spend 11k a year on a car privately and be no worse off.
I work for a massive (55,000 employees) company, and you don't get a company car unless you do a fairly significant amount of business miles - OP stated he didn't do business miles? Confuzzled - almost certainly by my naivety!
Although personally, I'm glad - I do a fair number - c. 4K business miles - per year - yes I know that's loads less than rep miles - but company would probably be better off with me having a company car than the hire cars I use instead with no tax penalty, and I get to spend my money on a car I actually want (options unless you are a director are Mondeo, Mazda 6 or Insignia)
Although personally, I'm glad - I do a fair number - c. 4K business miles - per year - yes I know that's loads less than rep miles - but company would probably be better off with me having a company car than the hire cars I use instead with no tax penalty, and I get to spend my money on a car I actually want (options unless you are a director are Mondeo, Mazda 6 or Insignia)
I can clarify that you most certainly do get a company car as a perk once you reach mgr grade in nearly all companies regardless if you do zero business miles.
I've had a co car - well I opted out - with many companies for many many years. Basically if your in finance once you qualify ease tially that's when you get the perk. Along with entitlement to bonus
I've had a co car - well I opted out - with many companies for many many years. Basically if your in finance once you qualify ease tially that's when you get the perk. Along with entitlement to bonus
Legacywr said:
I have no restriction as to what car I buy, I'm not worried about fuel consumption, insurance or value for money. The only thing I have to worry about is how much it will cost me in income tax each week! Top of my list would be a secondhand M3 but that would cost me £200 p/w 
Are you absolutely sure about this? - it's very strange criteria for a company car. Almost all company cars are leased, not bought, and there are almost always restrictions on what you can have - usually diesels to keep fuel costs sensible.Even the perk cars in my business are all diesels and hybrids. Even the chief exec. has a Lexus hybrid.
Actually come to think about it all co cars are leased incl maintence. Clearly buying used that's just not possible and I don't know any company willing to expose themselves to the risk of unknown and unquantified maintence charges... Plus there is always a max age of car you are allowed to run.
Remember a 2nd hand M3 co car tax wise to you makes no difference if it was new or say 3 years old you pay co car tax based upon it's list price. It's only of "benefit" to the company as in it's cheaper but the unknown maintence costs would mean it's a no no.
Also do remember if you opt out and say go for an M3 as it's in effect a co car if another employee needs transport they can take your car for the companys use. Not sure if you'd be happy or not about that but I'm assuming your answer re unknown maintence is that you'd pay for it in which case if someone else uses it and wears out tyres or engine damage um your paying for it.
Remember a 2nd hand M3 co car tax wise to you makes no difference if it was new or say 3 years old you pay co car tax based upon it's list price. It's only of "benefit" to the company as in it's cheaper but the unknown maintence costs would mean it's a no no.
Also do remember if you opt out and say go for an M3 as it's in effect a co car if another employee needs transport they can take your car for the companys use. Not sure if you'd be happy or not about that but I'm assuming your answer re unknown maintence is that you'd pay for it in which case if someone else uses it and wears out tyres or engine damage um your paying for it.
Chaps. OP seems to have a fair amount of latitude in what he gets and what he spends. I suspect he may well be a Director of a small ltd company or similar.
That said there is no way I would be contemplating paying that amount of tax for any of those particular cars.
I thought that Company Car tax was meant to ensure that the Chancellor did not miss out on the tax that would have been paid had the benefit not been taken in kind - not to pay the whole cost of the car. Just mad.
That said there is no way I would be contemplating paying that amount of tax for any of those particular cars.
I thought that Company Car tax was meant to ensure that the Chancellor did not miss out on the tax that would have been paid had the benefit not been taken in kind - not to pay the whole cost of the car. Just mad.
Mattt said:
It used to be the case that buying used was more tax efficient, my neighbour works for a SME and they always bought 3 year old BMWs and Mercs, but that stopped quite a few years back now.
I have come across one or two companies who liked to buy their company cars outright and sell them on when they'd finished with them - and for them it did make sense to buy nearly new cars. But I think leasing is almost universal these days - there's very little advantage for companies in buying their own cars, due to unknown sell-on values.
To answer some of your questions I am a company director hence the no restriction on what I buy. I don't really see the point of not having a company car when you consider how much it would cost me to buy and run a car of my own, even more so when you look at the price of petrol going up all the time! We always buy everything outright, we are not part of the lease culture.
Do you really think 7k a year is too much to run a car for a year? Surely we all put over £50 in our tanks each week?
I'm not sure I would, but if I bought a DS3 Racing it would only cost me £67 a week!
Part of the reason for this thread is also to compare the cars too!?
ps. Thanks for all the replies so far!
Do you really think 7k a year is too much to run a car for a year? Surely we all put over £50 in our tanks each week?
I'm not sure I would, but if I bought a DS3 Racing it would only cost me £67 a week!
Part of the reason for this thread is also to compare the cars too!?
ps. Thanks for all the replies so far!
I think the point is that you're paying £4k / year to the government for the use of a car you don't own.
Unless you do mega mileage in your company car, then you're going to be much better off taking a salary increase in lieu of a car - then spending it on financing a car that belongs to you.
Unless you do mega mileage in your company car, then you're going to be much better off taking a salary increase in lieu of a car - then spending it on financing a car that belongs to you.
JimexPL said:
Ds3 racing sounds like a good idea.
If imports fall through the co2 trap because it doesn't have a uk figure on the v5 then why not get a used camaro or c6 corvette? 400hp+ sounds like the way to go!
If the import is under 2.0 litres you pay tax based on 25% of the new value of car. If it's over 2.0 litres then that rises to 35% of the new car value, which also happens to be the top rate anyway making the Corvette as expensive as an M3!If imports fall through the co2 trap because it doesn't have a uk figure on the v5 then why not get a used camaro or c6 corvette? 400hp+ sounds like the way to go!
Ok with the updated info makes sense.
Thing is list price is going to sting you.
However you could go classic car ie Aston DB4 jag e type etc these all cost under £10k when new so even top rate it's a mere £250 ish PCM and your issue was similar amount weekly. Plus how epic would it be to have a proper classic car as a co car. Certainly the bragging rights.
Enjoy.
Thing is list price is going to sting you.
However you could go classic car ie Aston DB4 jag e type etc these all cost under £10k when new so even top rate it's a mere £250 ish PCM and your issue was similar amount weekly. Plus how epic would it be to have a proper classic car as a co car. Certainly the bragging rights.
Enjoy.
I think a Golf R or Scirocco R would be my choice.
Or a Jap import Civic Type R but not sure if you'd find a new one like below (they have probably stopped making them now)
http://www.litchfieldimports.co.uk/honda.asp
Lucky you having a free choice most companies insist on a diesel, in which case I'd be chosing a 335D if possibl.e
Or a Jap import Civic Type R but not sure if you'd find a new one like below (they have probably stopped making them now)
http://www.litchfieldimports.co.uk/honda.asp
Lucky you having a free choice most companies insist on a diesel, in which case I'd be chosing a 335D if possibl.e
this is not the usual company car dilema
OP is basing his decision on his BIK bill not lease, fuel, puchase or service costs
so the variables are list price including accessories, CO2 and driving pleasure
So the trick is find a good RWD chassis, good suspension and steering, hopefully low CO2 with low list price. I'd be looking Alpina D3's & 123D M sport. But you could go high CO2 and low list price.
OP is basing his decision on his BIK bill not lease, fuel, puchase or service costs
so the variables are list price including accessories, CO2 and driving pleasure
So the trick is find a good RWD chassis, good suspension and steering, hopefully low CO2 with low list price. I'd be looking Alpina D3's & 123D M sport. But you could go high CO2 and low list price.
Welshbeef said:
Ok with the updated info makes sense.
Thing is list price is going to sting you.
However you could go classic car ie Aston DB4 jag e type etc these all cost under £10k when new so even top rate it's a mere £250 ish PCM and your issue was similar amount weekly. Plus how epic would it be to have a proper classic car as a co car. Certainly the bragging rights.
Enjoy.
Unfortunatly classic car taxation is based on thier current market value!Thing is list price is going to sting you.
However you could go classic car ie Aston DB4 jag e type etc these all cost under £10k when new so even top rate it's a mere £250 ish PCM and your issue was similar amount weekly. Plus how epic would it be to have a proper classic car as a co car. Certainly the bragging rights.
Enjoy.
Legacywr said:
Welshbeef said:
Ok with the updated info makes sense.
Thing is list price is going to sting you.
However you could go classic car ie Aston DB4 jag e type etc these all cost under £10k when new so even top rate it's a mere £250 ish PCM and your issue was similar amount weekly. Plus how epic would it be to have a proper classic car as a co car. Certainly the bragging rights.
Enjoy.
Unfortunatly classic car taxation is based on thier current market value!Thing is list price is going to sting you.
However you could go classic car ie Aston DB4 jag e type etc these all cost under £10k when new so even top rate it's a mere £250 ish PCM and your issue was similar amount weekly. Plus how epic would it be to have a proper classic car as a co car. Certainly the bragging rights.
Enjoy.
ked over for the new value of cars that are no longer worth that though.. C nts.Gassing Station | General Gassing | Top of Page | What's New | My Stuff