The usual spec a company car thread...

[Amos91]

Hi all,

Potential new job with the option of a company car / car allowance.

I think the car allowance is the best option to go for, so the key facts:

•Taxable allowance is £575 a month. So roughly looking at about £250 a month for the car.
•Must be five door, no convertibles etc.
•Must be appropriate for the company image (company car pool is VW/Audi/BMW).
•No age limit but this is under review to due environmental pressures and company image.
•Annual business mileage is like to be circa 15k plus personal (5-10k)

What car would you buy? New or used? I think at this mileage leasing is out the window so I'm thinking PCP or bank loan to cover the costs.

Cheers,
Amos

 

[Havana_UK]

Used car, 1-2 years old with proper history and from a main dealer so you get a proper warranty with it.

Remember, for your calculations, don't only factor in the car allowance you'll received after tax, but also the company car tax you are NOT paying, because this is the difference between taking the company car and taking the allowance. I know you're not paying company car tax on this car right now, but if you were to take a company car you would be paying it, and you wouldn't be receiving the additional income, so to get a true picture of the net difference you need to consider both options.

Also worth bearing in mind that HMRC I think changed the tax rules recently so if there's a choice of company car or allowance, you still pay tax as if you have a company car. Not 100% sure on this, because I don't have a company car option myself, only the allowance.

 

[fastwunz]

The new Passat or an insignia sports tourer estate

 

[Amos91]

Used car, 1-2 years old with proper history and from a main dealer so you get a proper warranty with it.

Remember, for your calculations, don't only factor in the car allowance you'll received after tax, but also the company car tax you are NOT paying, because this is the difference between taking the company car and taking the allowance. I know you're not paying company car tax on this car right now, but if you were to take a company car you would be paying it, and you wouldn't be receiving the additional income, so to get a true picture of the net difference you need to consider both options.

Also worth bearing in mind that HMRC I think changed the tax rules recently so if there's a choice of company car or allowance, you still pay tax as if you have a company car. Not 100% sure on this, because I don't have a company car option myself, only the allowance.

Thanks! To be fair I hadn't thought about it like that... Only the difference in my monthly take home between my current and old job. But yes there would obviously be a more significant difference like that.

The new Passat or an insignia sports tourer estate

Thanks will take a look!

 

[fastwunz]

all,

Thanks! To be fair I hadn't thought about it like that... Only the difference in my monthly take home between my current and old job. But yes there would obviously be a more significant difference like that.



Thanks will take a look!

The Vauxhall is a massive step up from previous models and in tourer estate guise with the right wheels and paint (dark green looks great) it’s a very good looking and accomplished vehicle when you look at its price.

VW have just refreshed the established Passat and at the end of this month will open ordering for it. The new model has more tech, a new front end, new paints and new engines.

I’m actually ordering the Estate R-Line - it’s better built than the Vauxhall and has a better cabin etc - i also think the new R-line model in blue with the the 19” wheels looks cracking. Pair it with the new 180bhp petrol turbo in auto and you have yourself a smashing looking, superbly built and relatively affordable (compared to equivalent Audi bmw etc etc ) motor.

 

[DarkHorizon472]

As above you can get a 2-3 year old car with a three year warranty from a main dealer and they check the car before hand. Worth getting a low mileage car as the little extra you pay soon pays for its self. They should be around half retail price depending on the car.

Most dealers charge around 10% on their own finance where as other lenders will do loans at nearer 2% allowing you to spend more on the car for the same repayment.

Remember you need business use car insurance and budget for service, tyres, road tax etc. The upside is once you pay off the loan the value of the car at the time is yours.

 

[blueboy2001]

£250 a month will only get you £8.6k, £11.2k and £13.8k over 3,4 and 5 years respectively - and that’s at 3.3% APR.

I don’t think you’ll get a decent new car for your budget.

At 20-25k per year your residuals aren’t going to be great either, so a PCP will be relatively expensive and used PCP rates tend to be very high anyway.

I’d suggest something like this on a personal loan over 48 months: https://www.fow.co.uk/used/details/volkswagen-golf-diesel-hatchback-20-tdi-match-5dr-dsg-205667

I’d then look at swapping it after 2 years if the numbers work.

 

[Amos91]

£250 a month will only get you £8.6k, £11.2k and £13.8k over 3,4 and 5 years respectively - and that’s at 3.3% APR.

I don’t think you’ll get a decent new car for your budget.

At 20-25k per year your residuals aren’t going to be great either, so a PCP will be relatively expensive and used PCP rates tend to be very high anyway.

I’d suggest something like this on a personal loan over 48 months: https://www.fow.co.uk/used/details/volkswagen-golf-diesel-hatchback-20-tdi-match-5dr-dsg-205667

I’d then look at swapping it after 2 years if the numbers work.

Cheers, that does make sense! I am starting to lean toward a car up to £13k. I put 2k into it myself then get a loan for £10-11k at 2.9% for 48 months.