Company Car - Best value PistonHeader's Choice???

Company Car - Best value PistonHeader's Choice???

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Ocho

Original Poster:

686 posts

252 months

Thursday 9th February 2017
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So last time round I went for a Golf 7 GTD which I have to admit, I've loved. It ticks all the boxes: Economical, practical, but above all fast, handles well and great fun to drive.

At the end of the summer I need to choose again and I'm struggling to get my head around what I should go for that's still going to tick all those boxes, without potentially costing me a lot more once the government realises that their current taxation stance on company cars encourages people to go for a diesel over a petrol - by way of a comparison, Golf GTD = 114g/km v Golf GTI 148g/km.

For a higher tax payer that means that over the next 3 years the GTI costs about £60 per month more, before you start to think about economy and fuel costs.

Anyone have any thoughts about whether the government is likely to make any changes to the way BIK is worked out for the next three years or is there some legal expert out there who can tell me that the levels of taxation currently set for BIK based on emissions can't be changed to adversely affect those already tied into their company car for 3/4 years...

Alternative is a petrol/electric hybrid like the BMW 330e but only available as a saloon and the handling is possibly blunted by the batteries...

Any thoughts or suggestions welcome!

acme

3,020 posts

213 months

Thursday 9th February 2017
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Probably not ideal but I went for the Golf MK7 1.4 TSI ACT for these reasons, 148bhp, 0-60 8.2 but most importantly petrol. With 80kgs less over the nose as compared to the 2.0TDI the handling improvement was noticeable. Mixed with DSG and ACC it makes high miles comfortable, but enough fun when not on the work miles.

Admittedly you're likely to miss the 100lb/ft as compared to the GTD. 110g/km, & petrol, which since I got mine has meant the 3% surcharge on diesel wasn't scrapped...& 45mpg recorded over 48k miles.

As with everything it isn't perfect, but a good compromise for me.

Gunk

3,302 posts

174 months

Thursday 9th February 2017
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I'm also currently running a Mk7 GTD as a company car and I'm struggling to come up with a replacement for it later this year, it's not only the best company car I've ever had, it's probably one of my favourite cars I've had over the last 25 years. It just does everything so well.

I might just another, but add leather and a sunroof this time.

Ocho

Original Poster:

686 posts

252 months

Thursday 9th February 2017
quotequote all
Gunk said:
I'm also currently running a Mk7 GTD as a company car and I'm struggling to come up with a replacement for it later this year, it's not only the best company car I've ever had, it's probably one of my favourite cars I've had over the last 25 years. It just does everything so well.

I might just another, but add leather and a sunroof this time.
I'm thinking along similar lines, or maybe even just go for a GTI. Not sure how much difference it's actually going to make in terms of fuel costs though. One of my colleagues has just got one, but I feel she might have a slightly more relaxed driving style than I do... I think I need to demo one for a week if I can swing it and see what it's like on a variety of runs.

darthdicky

121 posts

258 months

Thursday 9th February 2017
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I've got the same problem, mine's due to go back in March but the equivalent replacement will cost 50% more than I'm paying now which I'm not overly keen on. Also would like something petrol which sounds nice as I don't do that many miles, but it's a hard all rounder to beat. Tempted to buy it from the lease company as it shouldn't lose too much money over the next 2 years, and I'm free to swap it for anything else interesting that comes up.

FN2TypeR

7,091 posts

108 months

Thursday 9th February 2017
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What about a Volvo V40 with the D4 engine if you're sticking with diesel? 190bhp, good economy and low emissions.

Trabi601

4,865 posts

110 months

Thursday 9th February 2017
quotequote all
Look at the 2018/2019 BIK rates.

A GTD would be £281 / month vs GTI at £297 / month (for base DSG cars with no options).

Some people are going to get a very nasty shock - one of my colleagues ordered a Disco Sport without looking at the future BIK rates. Ouch!

Conversely, a GTE with Navigation would be only £155 / month and an Audi A3 e-Tron about the same. (using 2018/2019 figures).

wemorgan

3,583 posts

193 months

Friday 10th February 2017
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Trabi601 said:
Look at the 2018/2019 BIK rates.

A GTD would be £281 / month vs GTI at £297 / month (for base DSG cars with no options).
Does the OP have a cash option? With those BIK rates he could potentially lease one for less.

Phunk

2,055 posts

186 months

Friday 10th February 2017
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Golf GTE, super low BIK, similar performance to a GTI and economy (if you charge it) similar to a GTD

Ocho

Original Poster:

686 posts

252 months

Friday 10th February 2017
quotequote all
Trabi601 said:
Look at the 2018/2019 BIK rates.

A GTD would be £281 / month vs GTI at £297 / month (for base DSG cars with no options).

Some people are going to get a very nasty shock - one of my colleagues ordered a Disco Sport without looking at the future BIK rates. Ouch!

Conversely, a GTE with Navigation would be only £155 / month and an Audi A3 e-Tron about the same. (using 2018/2019 figures).
Where have you got those figures from? My company's car site quotes GTD at £209.13 and GTI at £236.30 for 18/19 (manual rather than DSG).

Here is the output for DTD (5 door DSG, no extras):

P11D Value (£) 29,335.00
Monthly Personal Contribution (£) 116.57

UK Tax Payer Lower Tax Rate Upper Tax Rate Top Tax Rate
Tax Year % Taxable Benefit (£) % £ % £ % £
2016/17 25.00 5,934.00 20 98.90 40 197.80 45 222.53
2017/18 27.00 6,521.00 20 108.68 40 217.37 45 244.54
2018/19 29.00 7,108.00 20 118.47 40 236.93 45 266.55
2019/20 32.00 7,988.00 20 133.13 40 266.27 45 299.55

and for GTI - not Performance Pack (5 door DSG, no extras):

P11D Value (£) 29,730.00
Monthly Personal Contribution (£) 142.93

UK Tax Payer Lower Tax Rate Upper Tax Rate Top Tax Rate
Tax Year % Taxable Benefit (£) % £ % £ % £
2016/17 26.00 6,014.00 20 100.23 40 200.47 45 225.53
2017/18 28.00 6,609.00 20 110.15 40 220.30 45 247.84
2018/19 30.00 7,203.00 20 120.05 40 240.10 45 270.11
2019/20 33.00 8,095.00 20 134.92 40 269.83 45 303.56

One of us is working from the wrong figures it would seem?



Ocho

Original Poster:

686 posts

252 months

Friday 10th February 2017
quotequote all
Ocho said:
One of us is working from the wrong figures it would seem?

Have made a call to my fleet team and I can answer my own question here. Tax figures will change dependent upon the personal contribution. So one of us has a more generous scheme than the other.

Trabi601

4,865 posts

110 months

Friday 10th February 2017
quotequote all
That's a hefty personal contribution! - I'd never put that much in myself. My 520d costs me about 30 quid a month, as I went for Luxury with Harman Kardon and a load of other toys.

Ocho

Original Poster:

686 posts

252 months

Saturday 11th February 2017
quotequote all
Trabi601 said:
That's a hefty personal contribution! - I'd never put that much in myself. My 520d costs me about 30 quid a month, as I went for Luxury with Harman Kardon and a load of other toys.
Clearly the oil industry is still paying well...

Trabi601

4,865 posts

110 months

Saturday 11th February 2017
quotequote all
Ocho said:
Trabi601 said:
That's a hefty personal contribution! - I'd never put that much in myself. My 520d costs me about 30 quid a month, as I went for Luxury with Harman Kardon and a load of other toys.
Clearly the oil industry is still paying well...
Heh. It's OK, we just have a a very strong car scheme - but I also figured this may be the last really nice company car I'll be able to have, as successive governments have seen them as cash cows. (I do around 35k business miles per year and negligible personal miles in my company car, as I have a small fleet of my own - so I hate paying BIK tax).

The answer, in my opinion, in your position, is to look at the GTE / e-Tron, or look for cars with 89-99g/km emissions. Check out future BIK rates and minimise your personal contribution towards a company tool!