Company car time

[Jimbeam3678]

After some help as I have little knowledge of new cars.
Quick overview of personal requirements. I do have an option of a cash allowance but have no desire to use it for various reasons. I currently have Toyota Avensis Diesel estate - only car they had left from pool when I started (Funny that!)

We don't have kids or pets and don't plan to, will be mainly used for motorway miles or A roads.

Which one of the below would you choose.

• Vauxhall Astra Diesel Hatchback 1.6 Cdti 16V Elite Nav 5Dr
• Volkswagen Golf Diesel Hatchback 1.6 TDI SE 5Dr
• Vauxhall Astra Diesel Hatchback 1.6 Cdti 16V 136 SRi Nav 5Dr
• Volkswagen Golf Diesel Estate 1.6 TDI S 5Dr
• BMW 1 Series Diesel Hatchback 116d SE 5Dr [nav/servotronic]
• Lexus CT Hatchback 200h 1.8 Luxury 5Dr CVT
• BMW 1 Series Diesel Hatchback 118d SE 5Dr [nav/servotronic]
• Audi A3 Diesel Sportback 1.6 TDI 116 SE Technik 5Dr

Really appreciate your thoughts as I know there as some knowledgeable people on these forum.

 

[Jimbeam3678]

The one thing that jumps out at me is the Lexus will be less BIK... If that's a deciding factor at all. Bit of a meh car though.

After the next year I believe that would also become irrelevant as I would taxed whatever is higher the BIK or cash allowance happy to be wrong on this. Either way I've driven the car its not great!

Why have you ruled out taking the cash? You have a pretty bland list of entry level cars there you could take a loan buy something nice but a little older and cover the repayments with the car allowance?

What sort of mileage do you do? If not moon miles I’d opt out which is what I do.

The list is pretty bland, out of those on the list I’d reluctantly choose the Lexus.

I live in a city center and work 20 miles away which is the only reason I have a car. If I circumstances change I don't want to be left with car I don't need. In addition we're buying a house soon so I don't want the car as a debt for mortgage quotations. Along that I really can't be arsed with unexpected bills for a car. Rather take one of the mentioned cars and just drive it etc. I just want to make sure I get the best on of those cars so I'm asking you knowledgeable chaps and chapess

 

[Jimbeam3678]

Stick with the avensis they are all dull cars so save yourself the hassle of the switch and it will happily drive you to work and back without ever missing a beat. If you must swap take which ever is the cheapest thing on the company car list they will all tick your requirements list!

For your usage I think you are bonkers I'd buy a cheap banger and pocket the allowance to put towards your house!

I can't buy a cheap banger, it needs to be relatively new car can't remember the exact age.

easy shot but is the much larger boot/seats-down space of the this not a trump-card .. seems to be 605/1620 vs bm118,say 360/1200L ?
for sports equipment / bikes, other houshold neeeds.. etc ?

Boot space isn't a problem as the biggest thing I carry is a bike and I easily carry that. To answer a previous question I do about 15-18k a year.

 

[Jimbeam3678]

Do they actually enforce the policy I've yet to work anywhere that does except for sales roles!

I have no idea but I'm very of the sort that I play by the rules if they are enforced or not then you have no nasty surprises.

I got the impression that BIK was pretty much the primary driver of cost, and that a hybrid (or EV if you only do low mileage) would be significantly cheaper on tax than most diesels.
Anyone got the most recent data to back that up?
I'd certainly be checking out the hybrid and EV options before plumping for a daga daga.

BIK is almost irrelevant for me as any car registered after 2017 the below applies, which applies to me:
Cash allowance option and take car – change – you will be taxed on whichever is the higher of these two amounts: the amount of your cash allowance or the Benefit in Kind value of your car.

Source - https://www.clm.co.uk/company-car-tax/

 

[Jimbeam3678]

Thanks for clarifying.
So in short, if you get the option of a cash allowance, it's completely pointless going with an EV, unless the cash allowance is very low.
I can't help but think it pretty much destroys part of the market for hybrids.

That's how I understand, as always with these things I could be wrong but seems like from that link.

WIth the hybrid side of things yes looks like they killed that incentive if you have the option of a cash allowance.

Anyway what car

 

[Jimbeam3678]

Any other sources for that, I don't think anyone where I work is being taxed on that basis? Even those who have taken new cars in the last year.

Yeah, a few have EVs due to the really low BIK here...

I'm afraid not only started researching it the last week or so when I got my invite to order from my fleet management company.

I think I going for the A3 seems to be the best car on reviews at the spec level.

 

[Jimbeam3678]

Not 100% accurate as the Hybird I can order CT200h has a real world gpkm CO2 of 101 which would be above the threshold.

 

[Jimbeam3678]

For a mortgage:

The loss of car allowance (salary reduction) and BIK costs will in effect both count towards reduced borrowing value.

E.g. a salary of £35k + CA £4k = £39k total salary for mortgage value multiplier purposes.

By taking a company car in this example your salary becomes £35k - BIK costs as these are a fixed deduction shown on your payslip which could in effect leave base salary of c£33.9k (assuming 20% tax rate on 118d SE @BIK £89 pm). If you are a 40% tax payer, granted your earning more but BIK doubles and I presume you would be on a higher CA so the salary loss can be significant.

Depending on the mortgage company, your initial salary value can make quite a difference to what you can borrow before loans/pcp etc etc are considered.

Some mortgage companies just make assumptions for cost of living and fuel etc like Halifax so taking your full salary and only deducting a lease cost or PCP etc will work more favourably if you need a higher multiplier.

Thanks for the calculations I'll keep hold of them. However still not in the market for my own car for the other reason given. I've gone for the A3 which seemed like a solid choice and the reviews seem to put it above the BMW which surprised me.

 

[Jimbeam3678]

Ok so plot twist it seems ordering a new car is nigh on impossible through my company due to the fall out of emissions scandal.

I’ve got 400 per month to spend on a car, tax and insurance. Would have to be a loan, no kids, 15 miles a year and claim my miles from company.

What are my options? And what are the most desireable options for for said car. Going round in circles looking at stuff. Looked at A3,1 series, seat leon and focus but keep going round in circles.

 

[Jimbeam3678]

Done some more thinking on this - I have £400 to spend on a car a month.

The car has to be a maximum of 5 years. Way I see it is I have 2 options either buy outright :-

13k loan at £380 a month over 3 years then fund the shortfall of insurance, tax and maintenance myself. At the end I have car worth X thousand whic his profit?
OR
Lease something like the below and have money in the pocket monthly but ultimately end up with nothing at the end. Also exposed if I ever lost my job/car allowance.
https://leasing.com/independent-brokers/neva-direct/seat/leon/324052870/

Sure this has been asked before but if someone could offer some advice I’d appreciate it as I can’t for the life of me work out the best option!