Electric Company Car

[HustleRussell]

A friend's car is on its last legs. Friend's car has provided several years of service despite never being serviced and only having reactive repair work done at MOT time.

Friend has had their ear bent by the boss who has dangled an electric company car with charging, apparently for free, at work.

It's looking like an e-Up! can be had for about £170/month on a 36 month with £1000 down, all figures plus VAT.

I presume friend would be paying the VAT?

There was a 'charging included' toggle which put 20% on the contract cost. Friend said that charging would be provided by their employer so they didn't need to toggle that one on?

Friend is obligated to service the car per schedule at VW? A minor and a major during the three year term. No info on cost available online after a quick search.

I've never had a look at company cars or electric cars before but I think this looks like a good deal provided one can live within the limitations of an electric city car. For me a suspiciously affordable way into a £24k car?

Friend has told me that their current car was doing about the same monthly cost as the E-Up! in petrol, so the company car must be cheaper. I did the sums and it should have been more like £140 at current fuel prices- but still...

Am I missing something in my assumptions?

Friend argues that they have no money so can't buy a used car and feels that company car is a no-brainer. I am suspicious! If they have no money, how sensible is signing up to a large fixed monthly outgoing? My standard advice for cheap motoring is bank loan if necessary + used car. I think friend's job is stable but averagely paid at best.

ETA: 36 month not 32, obv.

Edited by HustleRussell on Monday 20th December 15:35

[ZX10R NIN]

Let her get it, the peace alone will be worth it from your point of view.

[HustleRussell]

Does it make sense though? It seems crazy to me that a new company car can be affordable when friend has had several years of practically free motoring- the current car barely had any depreciation to do and they were really just slinging the odd couple of hundred quid at it to get it through MOTs. It was a 1.8 Vectra so surely not that bad on fuel.

[Mammasaid]

Looks about right cost wise, will be cheap fixed priced motoring if they can get into the electric car mindset.

ABC - Always Be Charging.

https://www.leaseloco.com/car-leasing/volkswagen/u...

[HustleRussell]

Mammasaid said:

Looks about right cost wise, will be cheap fixed priced motoring if they can get into the electric car mindset.

ABC - Always Be Charging.

https://www.leaseloco.com/car-leasing/volkswagen/u...

Great website

I need to really scrutinise the usage cycle of an electric car for my friend's journeys. They've been doing 9,000 miles a year in their current car.

[Dan_1981]

Why is the friend signing up to a company car?

Why isn't company providing company car?

Job security shouldn't be an issue in terms of monthly payment? If the job goes.... so does the car?

Or am I missing something?

(I also thought being allowed to charge for free at work was a taxable BIK?)

[Mammasaid]

HustleRussell said:

Mammasaid said:

Looks about right cost wise, will be cheap fixed priced motoring if they can get into the electric car mindset.

ABC - Always Be Charging.

https://www.leaseloco.com/car-leasing/volkswagen/u...

Great website

I need to really scrutinise the usage cycle of an electric car for my friend's journeys. They've been doing 9,000 miles a year in their current car.

That'll obviously push the cost up a little (whether it's going for 9k a year upfront or paying the extra afterwards, VWFS usually charge ~7p/mile).

9000 miles/year is less than 180 miles/week, so easily doable in an eUp!

[Scrump]

Dan_1981 said:

(I also thought being allowed to charge for free at work was a taxable BIK?)

My understanding is taxable perk if charging a private car, no taxable benefit if charging a company car.

[ZX10R NIN]

HustleRussell said:

Does it make sense though? It seems crazy to me that a new company car can be affordable when friend has had several years of practically free motoring- the current car barely had any depreciation to do and they were really just slinging the odd couple of hundred quid at it to get it through MOTs. It was a 1.8 Vectra so surely not that bad on fuel.

It doesn't to you & I but to her who's only looking at the cost & maybe not the practicality, you making her buy another used car, will mean you won't hear the end of it if they have to spend money on repairs.

I will say get her to look at the Corsa/208e as they have better range & are overall a better car but the cost may be (around £200 + VAT) to much.

[HustleRussell]

Dan_1981 said:

Why is the friend signing up to a company car?

Why isn't company providing company car?

Job security shouldn't be an issue in terms of monthly payment? If the job goes.... so does the car?

Or am I missing something?

(I also thought being allowed to charge for free at work was a taxable BIK?)

Valid questions, I don’t really know all this, all I know is that friends employer has said that company car is possible and has provided this link. So presumably company is providing car and it does go away if the job goes.

[HustleRussell]

ZX10R NIN said:

HustleRussell said:

Does it make sense though? It seems crazy to me that a new company car can be affordable when friend has had several years of practically free motoring- the current car barely had any depreciation to do and they were really just slinging the odd couple of hundred quid at it to get it through MOTs. It was a 1.8 Vectra so surely not that bad on fuel.

It doesn't to you & I but to her who's only looking at the cost & maybe not the practicality, you making her buy another used car, will mean you won't hear the end of it if they have to spend money on repairs.

I will say get her to look at the Corsa/208e as they have better range & are overall a better car but the cost may be (around £200 + VAT) to much.

I have an almost pathological hatred of repeating monthly costs and subscriptions to the point that I don't even have a mobile phone contract.

Nonetheless I am not trying to deter my friend, but I am trying to ensure that I know about any prospective additional or hidden costs which would make this more expensive than one would assume at first glance.

It sounds like there aren't really any hidden pitfalls- you just need to be aware that you're adding vat on and paying any BIK applicable which as far as I can tell is pretty negligible.

In fact, if electric cars are this cheap to lease, then I have to consider that I'm the mug here with my 25mpg car and my heavy bias against leasing etc.

My friend is actually upset that the current car is on its way out. It's demise has been hastened by the scum helping themselves to the catalytic converter. It's 20 years old, it's done 150k+ miles so naturally replacement car is being considered.