£6000 car allowance, is it going to cost me?
Discussion
I have a low mileage Aston Martin which is worth about £40k, with that in mind I have an interview this week for a job paying £35k + £6k car allowance. The spanner in the works is the £6k allowance is dependent on experience, so I could end up with less than that.
At this point in time I do not know how many business miles I would be expected to do or what they pay per mile, but regardless I'm worried that using my Aston is going to leave me out of pocket.
What are my options here? I don't want to change my car as there is not much point going to work if I can't buy the things I want.
Unfortunately the role was advertised for £41k and travel was not specified, it's only when I got offered the interview I was told otherwise.
At this point in time I do not know how many business miles I would be expected to do or what they pay per mile, but regardless I'm worried that using my Aston is going to leave me out of pocket.
What are my options here? I don't want to change my car as there is not much point going to work if I can't buy the things I want.
Unfortunately the role was advertised for £41k and travel was not specified, it's only when I got offered the interview I was told otherwise.
I don't really understand the problem. A car allowance is pretty much just like salary you can spend as you choose, it's just that the company require that you have a car and are available to do business miles in it. So have what car you want. They'll likely pay a milage rate that's aimed at fuel plus a bit for a regular car.
hornetrider said:
Congrats for owning and running an Aston on that salary, kudos
This is PH, priorities matter 
UpTheIron said:
Buy a second car, or find a different job.
How is a car allowance dependant upon experience... if you are deemed inexperienced will you be doing less travelling?
I don't think the travelling will be in any different, but yes I agree its a stupid way of doing it.How is a car allowance dependant upon experience... if you are deemed inexperienced will you be doing less travelling?
otherman said:
I don't really understand the problem. A car allowance is pretty much just like salary you can spend as you choose, it's just that the company require that you have a car and are available to do business miles in it. So have what car you want. They'll likely pay a milage rate that's aimed at fuel plus a bit for a regular car.
Well I appreciate that, but lets assume they pay the full £500 a month + 20 pence per mile.Even if I can pocket some of that allowance at the end of the month, won't I will pay for it in depreciation and tyres etc?
Edited by Jasmine1 on Tuesday 2nd May 19:24
You are getting a car allowance - whatever level you negotiate. That is then just another element of salary.
You will then get a mileage allowance.
I suspect neither of these is sufficient to cover the runnng costs of your AM.
Not sure why that is a surprise - up to you to fund the costs of running a significantly more expensive car vs 320d (other standard issue white goods cars are available). That is the enthusiasts decision.
Clearly long term Aston's retained value will do better; but that is a speculative view!
I guess the point is where does the package leave you relative to your current position as you are already running the Aston (albeit potentially with a different mileage?).
Usual follow up question - what impact will an Aston have on your/your company's image? Not always a positive for the employer's perspective. I will wait to get flamed for that one!!
You will then get a mileage allowance.
I suspect neither of these is sufficient to cover the runnng costs of your AM.
Not sure why that is a surprise - up to you to fund the costs of running a significantly more expensive car vs 320d (other standard issue white goods cars are available). That is the enthusiasts decision.
Clearly long term Aston's retained value will do better; but that is a speculative view!
I guess the point is where does the package leave you relative to your current position as you are already running the Aston (albeit potentially with a different mileage?).
Usual follow up question - what impact will an Aston have on your/your company's image? Not always a positive for the employer's perspective. I will wait to get flamed for that one!!
Edited by Stuart70 on Tuesday 2nd May 19:36
Check the rules. Some companies have very specific requirements for cars used on business if you get an allowance. for example, less than 5 years old, 4 doors suitable for 4 adults, no sports cars/convertibles. How strict they are is another question.
A related story. I once attended a meeting with a customer/partner and my sales director. Whilst settling in I put my car keys down on the table. The customer commented that we must be expensive if the consultant is driving a Porsche. The meeting went well and we walked back to the Sales Director's car as he had driven us that day. He said, "its a good job they didn't see the keys for the Aston"
A related story. I once attended a meeting with a customer/partner and my sales director. Whilst settling in I put my car keys down on the table. The customer commented that we must be expensive if the consultant is driving a Porsche. The meeting went well and we walked back to the Sales Director's car as he had driven us that day. He said, "its a good job they didn't see the keys for the Aston"
In my line of work which is sales across the south west, it's not uncommon for people to run a secondary car, usually a shed which they just kill for work.
Can you afford to keep the Aston on the road and buy a secondary car given you will get the car allowance?
I'd be asking what sort of mileage you would be expected to do at the interview stage personally.
Can you afford to keep the Aston on the road and buy a secondary car given you will get the car allowance?
I'd be asking what sort of mileage you would be expected to do at the interview stage personally.
WindyCommon said:
Is "car allowance" another phrase for non-pensionable salary...?
In my work, yes it is.I get a 4K car allowance on top of my salary. It's fully taxable as normal income but not pensionable.
For what it's worth I've never done one single. business mile in over 2 years; all my business travel is by public transport.
A simple question to the employer would be an estimate on how many miles a year you'll be covering. Mileage will be paid for in addition to your allowance, although probably won't cover the costs of an Aston, but that's your choice of car.
I got a lease on a new Fiesta ST Line for 185 quid a month to avoid having to use my Scirocco (track car, not as nice as your Aston) for work.
I do some miles, average is maybe around 200-300 a month.
Something to check with the car allowance is the tax implications. My code was 1170L or whatever until I got a car allowance and now it's 870L,
While a nice bonus to have, I'd rather have a salary to match rather than a car allowance.
I do some miles, average is maybe around 200-300 a month.
Something to check with the car allowance is the tax implications. My code was 1170L or whatever until I got a car allowance and now it's 870L,
While a nice bonus to have, I'd rather have a salary to match rather than a car allowance.
Yes, my point is I may earn a few extra grand but I'll lose a few extra grand in deprecation - making it a pointless move.
I'm waiting for their response on the anticipated business mileage, but having spoken to some friends who have car allowance, they don't actually do many business miles if any although obviously every company is different.
Of course they may turn around and say my car needs to be <insert boring Germanic saloon here> in which case I shall politely decline any subsequent job offer.
FYI according to my Android app my running costs stand at £1 per mile not including depreciation. A lot of that cost is warranty renewals, insurance, tyres etc.
I'm waiting for their response on the anticipated business mileage, but having spoken to some friends who have car allowance, they don't actually do many business miles if any although obviously every company is different.
Of course they may turn around and say my car needs to be <insert boring Germanic saloon here> in which case I shall politely decline any subsequent job offer.
FYI according to my Android app my running costs stand at £1 per mile not including depreciation. A lot of that cost is warranty renewals, insurance, tyres etc.
Personally, I wouldnt have thought that an AM would be a suitable commuting vehicle. I am also unsure on what job it is you will be doing, but if it involves visiting clients or customers I would suggest that an AM would not be suitable.
I also assume that your employer will have some stipulations for your car, eg no older than 5 years, 5 door perhaps, diesel. All of which the AM does not tick.
I would take a competitive lease on commuting / work car and leave the AM for the weekends. as you will be covering less miles in the AM, it will depreciate less.
I also assume that your employer will have some stipulations for your car, eg no older than 5 years, 5 door perhaps, diesel. All of which the AM does not tick.
I would take a competitive lease on commuting / work car and leave the AM for the weekends. as you will be covering less miles in the AM, it will depreciate less.
otherman said:
I don't really understand the problem. A car allowance is pretty much just like salary you can spend as you choose, it's just that the company require that you have a car and are available to do business miles in it. So have what car you want. They'll likely pay a milage rate that's aimed at fuel plus a bit for a regular car.
I'd have thought most companies car allowance scheme isn't "we're going to give you six grand a year and you just have whatever the f
k you want"MarshPhantom said:
I'd have thought most companies car allowance scheme isn't "we're going to give you six grand a year and you just have whatever the fk you want"
4 companies I've been at and receiving a car allowance haven't cared what you drive.k you want"The fifth did. I was offered the job and turned it down. Says a lot about company ethics in my book.
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