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Company Car

S

Spursman

Neil Sullivan
So, the lease runs out on my current company car which is a BMW 1 series.

The company have given us an option of:

A- Skoda Octavia with a tracker
B - £500 a month allowance to sort our own cars

I have always had company cars and enjoy the no hassle of them. However, I do not want to be driving around in a Skoda! they have given us no choice apart from that car. Im not that old and work in the design industry so for the to give us such a brick car I surprised. I think they don't really want to have to give us a car, they would prefer to give an allowance.

The £500 a month is obviously taxable but id also pay less tax on my wages. I don't really like the idea of leasing a car and the cars I would buy are expensive.

So not sure what I want to do. I work in and around London so would also use the train on some days.

what would you do?
 
Get a bike!

Take the 500/month and get something cool. Can you charge an EV at home? So many 2-3 year old cars that are terrific options.
 
SpurMeUp said:
Get a bike!

Take the 500/month and get something cool. Can you charge an EV at home? So many 2-3 year old cars that are terrific options.
Click to expand...

£500 is taxed plus I need to consider insurance and all that stuff that comes with owning your own car. Not sold on an electric vehicle.
 
Spursman said:
So, the lease runs out on my current company car which is a BMW 1 series.

The company have given us an option of:

A- Skoda Octavia with a tracker
B - £500 a month allowance to sort our own cars

I have always had company cars and enjoy the no hassle of them. However, I do not want to be driving around in a Skoda! they have given us no choice apart from that car. Im not that old and work in the design industry so for the to give us such a brick car I surprised. I think they don't really want to have to give us a car, they would prefer to give an allowance.

The £500 a month is obviously taxable but id also pay less tax on my wages. I don't really like the idea of leasing a car and the cars I would buy are expensive.

So not sure what I want to do. I work in and around London so would also use the train on some days.

what would you do?
Click to expand...
Take the money.

An octavia is what? £25K BiK rates are 37% on anything nowadays, so that's £9250 BIK per annum - £3700 tax per year that you pay. You'll pay £2400 per annum tax on the £500 - make up the difference with what you would have paid in tax and that's about £800 per month you can spend on a car and be no worse off. At the end of the period you also have a car you can sell.

Note* This all changes massively if your company offers tree huggy cars
 
I'd take the money and buy a good electric bicycle. Little bit of modification on them, and they go at 50kph (if you want too). Here in norway it's illegal if they go more than 25kph, but who cares :D. I've modded mine so it does nearly 50kph.
 
scaramanga said:
Take the money.

An octavia is what? £25K BiK rates are 37% on anything nowadays, so that's £9250 BIK per annum - £3700 tax per year that you pay. You'll pay £2400 per annum tax on the £500 - make up the difference with what you would have paid in tax and that's about £800 per month you can spend on a car and be no worse off. At the end of the period you also have a car you can sell.

Note* This all changes massively if your company offers tree huggy cars
Click to expand...

Thanks, good to see the figures, wasn't sure how you work it all out.

The new company car would be a Skoda Octavia 2.0 Diesel.
This vehicle is fully equipped with SATNAV, Bluetooth, Parking Sensors and is considerably larger than the current BMW 1 Series.
FYI the emissions are 111, the list price is £24,470, Fuel consumption is a combined 67.3mpg and the BIK is 16%.
The vehicle will also be equipped with a tracker - The tracker has been strongly recommended to us by our Insurance company and the leasing company. The tracker will also have the added advantage of easily providing you with information relating to business & Personal miles.
Reference fuel - Business miles obviously fully funded - Personal miles are charged at £0.11 per mile
 
Kandi1977 said:
I'd take the money and buy a good electric bicycle. Little bit of modification on them, and they go at 50kph (if you want too). Here in norway it's illegal if they go more than 25kph, but who cares :D. I've modded mine so it does nearly 50kph.
Click to expand...

need a car, got a family.
 
Spursman said:
Thanks, good to see the figures, wasn't sure how you work it all out.

The new company car would be a Skoda Octavia 2.0 Diesel.
This vehicle is fully equipped with SATNAV, Bluetooth, Parking Sensors and is considerably larger than the current BMW 1 Series.
FYI the emissions are 111, the list price is £24,470, Fuel consumption is a combined 67.3mpg and the BIK is 16%.
The vehicle will also be equipped with a tracker - The tracker has been strongly recommended to us by our Insurance company and the leasing company. The tracker will also have the added advantage of easily providing you with information relating to business & Personal miles.
Reference fuel - Business miles obviously fully funded - Personal miles are charged at £0.11 per mile
Click to expand...
That changes the equation somewhat. You'll pay less tax on the company car than you would the cash, but you still won't have a car at the end.

If you want fag packet calculations, if a car is worth £25K then for every 1% of BiK you will pay £100 tax per annum. So 16% BiK on a £25K car (at 40% tax rate) would be £1600 per annum (£133 per month).
 
Rorschach said:
pininfarina batistta
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There was one of those in the showroom when I went in for a service recently.

They didn't believe me when I said I was thinking of buying one so it made sense if they gave me that as my courtesy car for a couple of days :(
 
scaramanga said:
That changes the equation somewhat. You'll pay less tax on the company car than you would the cash, but you still won't have a car at the end.

If you want fag packet calculations, if a car is worth £25K then for every 1% of BiK you will pay £100 tax per annum. So 16% BiK on a £25K car (at 40% tax rate) would be £1600 per annum (£133 per month).
Click to expand...

Thanks, Im not fussed about owning a car at the end. I haven't owned a car for about 15 years. Always had company cars. I just don't like the idea of driving around such an undesirable car.
 
Take the car no hassle with tax, insurance, servicing and repairs, it's just a machine to move about in and anyone who worries about what other people think about the car they drive have real self esteem issues.
 
Spursman said:
£500 is taxed plus I need to consider insurance and all that stuff that comes with owning your own car. Not sold on an electric vehicle.
Click to expand...

You will own the car at the end. If you buy well it could be worth £5,000 to £15,000 when you sell it. That is a chunk of change you can either put towards the next car or whatever. What do you like in your cars? Performance, looks, 2 or 4 seats, big boot? Do you have a budget? Can a loan, far better than finance.
 
Kandi1977 said:
I'd take the money and buy a good electric bicycle. Little bit of modification on them, and they go at 50kph (if you want too). Here in norway it's illegal if they go more than 25kph, but who cares :D. I've modded mine so it does nearly 50kph.
Click to expand...

That sounds bonkers. Do you have winter tyers?
 
K.D.D.D.D.Soc said:
Take the car no hassle with tax, insurance, servicing and repairs, it's just a machine to move about in and anyone who worries about what other people think about the car they drive have real self esteem issues.
Click to expand...
What if he cares what he thinks about the car he drives?
 
scaramanga said:
There was one of those in the showroom when I went in for a service recently.

They didn't believe me when I said I was thinking of buying one so it made sense if they gave me that as my courtesy car for a couple of days :(
Click to expand...
I wonder why they didn't believe you were serious about buying a £2mil car. Very rude of them.
 
If you're looking for something around £25K then there's plenty of options.

My personal choice at that price is this, but I can understand if it makes carting the family about a little difficult:
https://www.gilescooperautomotive.c...er-essex-315c74bf-96a5-4f0a-8e0e-3f99d2adb088

This is a bit more family-friendly but rather garish inside (I suppose young people like that kind of thing):
https://www.sytner.co.uk/mini/car-s...ource=autotrader&utm_campaign=uvl_deeplinking

Are you sure you can't get by with two doors?:
https://www.angusmackinnon.co.uk/used-jaguar-f-type-uttoxeter-staffordshire-2570502

Two doors but more space:
https://www.sourceanycar.com/used-mercedes-benz-cl-leeds-west-yorkshire-880546

you could always go all grown up and get this for the family/dogs:
https://www.autotrader.co.uk/classified/advert/202001045799696
 
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