30k commuting miles a year. Own car or company car?

[IgnitionMS]

Hi all

Looking for some advice and opinions. I am due to start a new role which involves me driving a 120 mile round trip per day. I have a few options available to me and am trying to work out what would be best with practicality vs cost vs fun.

I will receive a fuel allowance of £160 per month (after tax) and essentially have the option to take a company car or a car allowance (£300 a month after tax)

As far as I see it I have the following options

1. Keep my current car (BMW M140i) and run that into the ground this seems to be the most expensive option as running costs and fuel are high

2. Get an e46 320d / VW 1.9TDI etc and run that into the ground, on paper the best financial problem ignoring any huge repairs

3. Take the company car, I can get a very high spec 330e (there are charming points at work), not have to worry about any costs bar fuel and company car tax. But I will obviously lose the car allowance

Any thoughts or advice is appreciated. If I took the cheap runner or the company car I would most likely sell the M140i and free up some cash.

Thanks

[AlpineWhite]

Option 2 could be a cheap option until something goes pop (then it feels very expensive)

Option 3 if you can get something that's BIK friendly

Don't underestimate how often you need tyres, servicing etc. Add up the cost of insurance, tax etc. Compare it to the bik cost (offsetting for your allowance)


Wouldn't fancy doing it again out of my own pocket.

[IgnitionMS]

My rough fag packet maths works it out to be considerably cheaper in option 2 as the whole commute is motorway and dual carriageway.

The 330e is the best pick as it’s BIK friendly even more so from April

[Swampy1982]

For option 1 and 2 are their rules about what car you need, <6 years old etc etc?

[IgnitionMS]

Nope no rules at all on what car I need to have

[ZX10R NIN]

I'd say realistically spend between 8-10k which will land you a low mileage ULEZ compliant workhorse with less than 40k on the clock which means you have something that'll last you 3-4 years.

You should be able to claim the VAT back on maintenance tyres etc & take the fuel allowance from your new job.

Insignia Elite Nav

https://www.autotrader.co.uk/classified/advert/202...

V40 D4 SE

https://www.autotrader.co.uk/classified/advert/201...

DS5 Style

https://www.autotrader.co.uk/classified/advert/201...

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/201...

Q50 Premium

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/202...

Mazda3 Sport Nav

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/202...

[DickP]

ZX10R NIN said:

You should be able to claim the VAT back on maintenance tyres etc

Hi,

I receive a car allowance (of a similar sum to the OP). What is this about claiming VAT back on maintenance and tyres?

Have I been missing a trick?

Thanks,

[Sheepshanks]

ZX10R NIN said:

You should be able to claim the VAT back on maintenance tyres etc & take the fuel allowance from your new job.

I might be missing a trick here, but how would he be able to claim the VAT back?

[ZX10R NIN]

DickP said:

Hi,

I receive a car allowance (of a similar sum to the OP). What is this about claiming VAT back on maintenance and tyres?

Have I been missing a trick?

Thanks,

It'll depend on your employment status but I have clients that get a fuel allowance & are able to claim back a percentage of their maintenance costs back.

With others they get a mileage allowance which covers fuel & running costs.

[2 sMoKiN bArReLs]

Forgetting the arithmetic, which is probably marginal.

There's nothing like the peace of mind of a company car, especially if you are doing biggish mileages.

Something goes wrong? No probs.

I know which option I'd pick.

[AWRacing]

2 sMoKiN bArReLs said:

Forgetting the arithmetic, which is probably marginal.

There's nothing like the peace of mind of a company car, especially if you are doing biggish mileages.

Something goes wrong? No probs.

I know which option I'd pick.

This^^

Especially on that mileage.

[BIG DUNC]

I once had the exact same choice. I had been getting the train to work and they asked me to move office, making 120 mile daily round trip.

My daily drive at the time was a Mazda 3 MPS, which was a lot of fun, but hardly light on the fuel.

I thought long and hard about which diesel to buy, but in the end did it in the MPS. Man maths said if I was spending 3 hours a day in a car, it had to be a car I enjoyed. So I stuck with the one I had.

The drive makes a big difference. I did a bit on the motorway but half of it was nice A/B road. Had it all been motorway I would have for a barge. In the summer when it was light in the mornings I found myself setting my alarm earlier and earlier so as to enjoy the drive before traffic. I probably wouldn’t have done that in a diesel barge...

[RhysH]

I was in a similar predicament as you, although slightly different.

I do a lot less miles a year, circa 16k.. and my commute is 20miles each day when not away on business. The company car range was terrible and over 4 years (my company has tried to make it as poor as possible to get people out of the scheme!).

Because of this I bought a Mercedes E320CDi 2008. It got of to a rocky, start and I have ended up having to spend over $1k on it, to get niggles the last owner has let go ( I does not help being as fussy as I am with cars having to work as they should). This can be pain when you need a car for work etc. However now its right I actually quite like it and the saving... Though its mean to end as using cash to fund other things and when thats sorted in a year or so I will buy a new car.

Other things to consider. Would you be happy running around in an old car? Things I really missed is DAB and being able to stream music on long runs! Also other mod cons (thing with my E320CDi it had most other and upgrading from a 2.0tdi to 3.0.ltr enough the grunt and the build quality is great).

At 30k miles I would really think about it. Thats a lot of miles in an old barge, and running costs. I read somewhere anything over 20k miles and stay in company car scheme. Also look at your work scheme are the cars anything you actually like?

[xjay1337]

No reason why you can't buy any of the 320d or VW PD engine , or the Merc 270 cdi engine cars and enjoy reliable happy motoring.

Also plenty of other more interesting choices.

I would never get a company car if you are offered a car allowance, much better for you (IE You save money) , you own your car and no possible tracking / reports etc of any speeding!

[IgnitionMS]

There’s a good range of cars, the best on the list is the 330e M Sport plus with the tech pack. It’s still going to lose a lot of the fun factor over the M140i but I will spend most of my commute on the cruise control at 70mph

[RhysH]

If thats the case I would think about getting into Company car, not sure what BIK is like 330E? But 330E and possible cash you save on 140i get a toy car?


With any decision its 1 part working out real costs and 2nd part working by man maths. IE if its going to be your only car then you also need to be happy with the car.

Also can you get back into the scheme if opted out at the start? If this is the case you may be able to change your mind X years down the line.

[IgnitionMS]

The 330e will be around 175 a month I should also get close to the 150 per month (post tax) mileage allowance in fuel.

It most likely will be my only car, you can opt into the scheme at any time.

[DickP]

ZX10R NIN said:

It'll depend on your employment status but I have clients that get a fuel allowance & are able to claim back a percentage of their maintenance costs back.

With others they get a mileage allowance which covers fuel & running costs.

I don't wish to detract too much from the OP's topic, but I don't think I understand you. I have car allowance and then claim mileage back at 40 pence per mile (I know it can be 45ppm but the company policy is 40ppm for the first 4,000 miles of the tax year, and then 11ppm for the remaining above the first 4,000 miles).

Does this mean it is not applicable to me? Where could I find the info on claiming maintenance / running cost VAT?

[ZX10R NIN]

DickP said:

I don't wish to detract too much from the OP's topic, but I don't think I understand you. I have car allowance and then claim mileage back at 40 pence per mile (I know it can be 45ppm but the company policy is 40ppm for the first 4,000 miles of the tax year, and then 11ppm for the remaining above the first 4,000 miles).

Does this mean it is not applicable to me? Where could I find the info on claiming maintenance / running cost VAT?

I can find out for you it's only something my clients have said to me so I'll have to get more info.

[Roboticarm]

I'd get the company 330e, if you are 60 miles from home you want a car which will defo get you home.