What to do with my car allowance?

[AthlonTom]

I'm going to be getting 5K a year from work soon as a car allowance

Though the question is; what to do with it? Ideally I'd like the car itself to cost no more than 360 a month so I can cover my Insurance and save some for servicing etc.

Currently driving a Y reg Peg 106 Diesel (1.5) with 52 K on the clock.


The other option is to have a brand new BMW 320 D with the M-Sport Kit from work as a company car (maitenance, tax and insurance all in)

Thoughts?

EDIT: Preferably its got to be Diesel as I do around 30K a year

 

[AthlonTom]

Tax on the 320d won't be too bad. I'm guessing the CO2% is around 20%, and guessing the list price of the car is around £25,000. Taxable benefit is around £5k as a result.

You will therefore end up with a net bill of £1,100@22% or £2k@40%.

On the 320D my boss said it'l be about £70 a month, dont know what happen on car allowance though