Company Car

jackdoes

Hi,
I know this post is quite old but I am looking for similar advice. I think my situation is slightly different.

I also am faced with the choice of getting a company car or private with car allowence.

If I get my own car I dont think I get any milage, ie I get a car allowence, extra money every month + all business fuel paid. So what I have left after tax I am to use on service, tyres, car loan, etc.

I know if I get a cheap car I will probably pocket some extra cash every month but then you have the worry of it not starting or breaking down somewhere. Also I will spend most of my time in the car so it would be nce to be in a comfortable car.

I am finding it very hard to figure out which way would be best. I would prefere to get a company car but think it is a waste of money buying a brand new car.

thanks

Seth Brundle

New thread created (originally posted here) - do not resurrect old threads!

R.O.R

How much mileage do you do - total per annum, not just business mileage?

jackdoes

35000km

Berty

There is a lot of good value out there so you will stand to get a good car so long as the company is not revising its allowances down on that basis.

Drummerboy08

R.O.R wrote: »

How much mileage do you do - total per annum, not just business mileage?

I can smell the sale already....:D

R.O.R

At 35k per annum I'd seriously be considering a company car. The fact you don't have to worry about tax, insurance, servicing, tyres, breakdown etc. when you are spending a lot of time on the road.

When weighing up the difference between BIK cost and allowance, don't forget to factor the above in to the equation.

jackdoes

It is still difficult to decide.

Let's say I get 1k per month. Over 3 years I get 36k. I could get a decent 2nd hand for about 25k and then use the rest for maintenance
e.

Am I missing something or is that not a much better deal for me, extra money coming in to my pay pack every month instead of €600 going out.

R.O.R

jackdoes wrote: »

It is still difficult to decide.

Let's say I get 1k per month. Over 3 years I get 36k. I could get a decent 2nd hand for about 25k and then use the rest for maintenance
e.

Am I missing something or is that not a much better deal for me, extra money coming in to my pay pack every month instead of €600 going out.

You get taxed on the €1k a month so actually come out with probably around €520 after tax, or €18,720 over 3 years.

I'll make a stab at the figures for ownership as it depends on which car you go for, and your circumstances:

Insurance for 3 years: €4,500
Car Loan repayments (€20,000 car over 5 years) - €15,012
Tyres (3 full sets, €80 a tyre) - €960
Tax (Band B, Co2 based) - €468
3 years service & timing belt & replament car- €1,800

Total = €23,740 leaving you paying €5,020 out of your pocket for the car.

Based on the same value of vehicle (€20,000) at 30% BIK:
Annual Liability = €5,400
Monthly Liability = €450
Tax on €450 - around €216
Total BIK cost to you = €7,776

In this instance you end up €2,756 better off over the 3 years, and with a car at the end of it, but also anothe €10,032 over 2 more years of a car loan to pay off on a car that isn't worth that much.

If you have an issue with Clutch / flywheel / injectors (quite possible at that mileage) you could end up forking out €2,000 to fix whereas if it's a company car then someone else picks up the tab.

robtri

jackdoes wrote: »

It is still difficult to decide.

Let's say I get 1k per month. Over 3 years I get 36k. I could get a decent 2nd hand for about 25k and then use the rest for maintenance
e.

Am I missing something or is that not a much better deal for me, extra money coming in to my pay pack every month instead of €600 going out.

You are forget cost of credit.... unless you have 25k lying around....
but if you where to get a loan for a €25k car, with protection in case your job goes belly up here;s the numbers from halifax for example

Loan amount : 25000
Term : 36 months
APR : 10.9%

Loan protection : 3306.48

Total amount borrowed: €28306.48

cost of credit: €4758.25

monthly repayments: €918.47........

then you have all your expense out of that maint, tyres, servicing ect.....

now out of the 1k a month, well not looking good....

Berty

R.O.R WOW

I have never seen somebody put it out on paper like that. I was considering this recently and that little mathematical solution makes my decision for me.

I do NOT want to own the car!

Kudos to you SIR!

R.O.R

Berty wrote: »

R.O.R WOW

I have never seen somebody put it out on paper like that. I was considering this recently and that little mathematical solution makes my decision for me.

I do NOT want to own the car!

Kudos to you SIR!

7 years experience comes in handy now and again

Drummerboy08

R.O.R wrote: »

7 years experience comes in handy now and again

Until your experience tells you to put out three, horrible white cars to the same company....;):p

They're brown today btw.

R.O.R

Drummerboy08 wrote: »

Until your experience tells you to put out three, horrible white cars to the same company....;):p

They're brown today btw.

What the customer wants, the customer gets :cool:

All 3 weren't there today anyway smartarse! The Insignia is currently on it's way back from Limerick :P

Drummerboy08

R.O.R wrote: »

What the customer wants, the customer gets :cool:

All 3 weren't there today anyway smartarse! The Insignia is currently on it's way back from Limerick :P

In that case, the Insignia is flooded.