Company car questions.... costs to a business?

[Russfred11]

Hi all,

I recently started work for a small business that provide me with a company car as I have a field based role and cover around 30k a year.
This is the only company car in the business and I suspect that it is bought by the company not leased as there is a local mechanic who services it and carries out any work that needs doing rather than a main dealer or having to organise things through the leasing company.
My car is coming up to 5 years old and I have been informed that it will be changed this year.
However, literally 2 months before I got the job I got a car in finance which is now sat idle.
My question is, if I suggested that I used my own car instead of having a company car and claimed mileage, would it be beneficial to the company and save them any money in tax / leasing etc or is the difference minimal?
Before I suggest it I want to make sure that I can sell it to them as a money saver as much as it’s a little earner for me too!

Thanks

[f1nn]

Beneficial to the company, madness for you at that annual mileage.

[Russfred11]

Is it? I know the first 10k are at 45p per mile and 25p after that. Obviously I would escape BIK tax too. The mileage rate would more than cover my servicing etc . What’s the thinking behind your answer? Just curious as I’m new to all this lol

[Captain_Morgan]

What type of finance do you have on the car?

Have you considered what the impact of 30k miles plus personal will do to your residual value and what it will cost in servicing?

[Russfred11]

The car is 9 year old 1 owner car with low mileage. It’s got full service history and cambelt changed 500 mile ago so I know the car is sorted and has been looked after. It’s only worth 2k so residual value isn’t a worry to me as after a couple of years I will get rid and change for a newer car. Don’t get me wrong, the monthly payments are not big, it just seemed a bit daft having it sat there while I potentially could be using it. Servicing is a few hundred quid a year as I know it will have to be done a couple of times if I was to use it. I am in 2 minds as a company car is essentially worry free in regards to maintenance but in a way I’m paying for it via BIK tax and I could be potentially making a few extra thousand a year if I was to use my own car through the mileage allowance. It’s tough

[f1nn]

Yes, utter madness.

The risk is all yours, for your employers benefit.

You are covering 30k a year, can your £2k car cope with that? Why would you want the worry?

I don’t see why you would want to make this your problem.

[Russfred11]

Just found out that I’ll be getting a PHEV, my BIK will more than half so I’m taking the company car!

[shep1001]

Russfred11 said:

Is it? I know the first 10k are at 45p per mile and 25p after that. Obviously I would escape BIK tax too. The mileage rate would more than cover my servicing etc . What’s the thinking behind your answer? Just curious as I’m new to all this lol

The head gasket went on my 2yr old Mazda 6 with 61k miles on it. It cost 1000's to fix. I got a taxi home from from the road side, about a month later it magically appeard back at my house with a new engine. No idea who paid for it and I don't care but I know it wasn't me. Same with the BMW hire car I had whilst it was being fixed I wasn't paying. If your car lets go, how tolerant will your employer be about waiting for you to repair it or find suitable alternative transport.

You might also find your employer has rules about what vehicle you can have. If you take the cash instead of a car with my employer, the car you buy must be 4 door, under 6 years old, not in a silly colour or look like it crashed through the window of Halfords etc.

Not worth the hassle doing high miles you assume all the risk, your employer is limited to what they pay you a month and nothing more.

[shep1001]

Russfred11 said:

Just found out that I’ll be getting a PHEV, my BIK will more than half so I’m taking the company car!

12% for the next couple of years on the decent ones with reasonable batter life. Even if you pay tax at 40% something like a 330e MSport BMW is only £160/mnth if you are on 20% you are laughing, it would be half that.