Budget circumstances changed - Spec me thread

RQ7

RQ7

RQ7

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18 Aug 2010
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I have been looking to buy a used car for months. However today my Company have agreed to finance £7,500 up front to help me purchase a used car. Therefore my circumstances with regards to budget have changed.

I anticipate I will do around 30,000 miles per year. Key requirements below (in no particular order)
• Something comfortable on long runs on the motorway
• Economical
• Reliable (as the motor will be used for business trips)
• Handle lots of miles

Spec me! Look forward to hearing your thoughts
 
Also, if they are putting up £7,500, is that your entire budget or are you going to use that as a sizable deposit and personally finance some more?
 
That's a good point and could be a good way of doing things - you could end up with a very new car and x years warranty for a fairly low monthly sum
 
rodenal said:
That's a good point and could be a good way of doing things - you could end up with a very new car and x years warranty for a fairly low monthly sum
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It's the way round I'd be doing it if I had to rely on the car for business, especially for high mileage and modern diesel combined!

You'd end up with an up to date model in warranty and potentially not even too shabby a spec!
 
rodenal said:
Car allowance is taxable but this sounds like a one off payment of £7.5k towards a car of the op's choice
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This. Company are giving a one-off payment to help finance a motor that will be reliable and comfortable for me to carry out my duties

I could put some money in from my own budget and stretch it out to near £9kish and get a better example...
 
Would you still get taxed if the company put that £7.5k directly towards the finance of a new car.

I know you'd get taxed if you pocketed the £7.5k and went and bought a car. Just wondering if you could skip the tax bill.

Does it have to be new as well? I'd be tempted to get a 1 year old example from a main dealer on finance, saving you even more???
 
rossk26 said:
Would you still get taxed if the company put that £7.5k directly towards the finance of a new car.

I know you'd get taxed if you pocketed the £7.5k and went and bought a car. Just wondering if you could skip the tax bill.

Does it have to be new as well? I'd be tempted to get a 1 year old example from a main dealer on finance, saving you even more???
Click to expand...

I wouldn't want the finance to be fair (monthly payment..)
 
It largely depends on what kind of car you're looking to take - but with a theoretical £7.5k deposit you could but something at up to say 12-13k with a couple of years warranty left saving you the potential grief of forking out your own money if/when something breaks.

As you'll be doing 90k over 3 years I'd anticipate you'd have a bit of cash to fork out on maintenance of a modern diesel. I guess you need to think about how much (if anything) you're willing to pay either up front or monthly to de-risk that a bit. Again it depends what kind of car you're actually anticipating buying really
 
Depends how it's done (and how honest the employer is to HMRC) does it not? - if the company pay that money directly to the dealer then so long as their own books are in order I don't see how the OP would need to incur any tax.

An alternative I imagine would be for the company to pay the full cost outright with the extra over being a "loan" to the employee with the vehicle then held as an asset.

Or for it to be paid as bonus (but obviously the employer would have to pay the plus tax and NI amount)
 
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