It looks like you're new here. If you want to get involved, click one of these buttons!
Subscribe to our Patreon, and get image uploads with no ads on the site!
Base theme by DesignModo & ported to Powered by Vanilla by Chris Ireland, modified by the "theFB" team.
Comments
Just ask your HR team, or check your company intranet.
First work out what you're paying in company car tax. Then add on the car allowance (minus tax and NI as I assume it'll be paid as salary). That's what you've got yo spend on a lease, insurance, fuel, and servicing (assuming that's not included).
Then have a look at lease costs, which will vary widely. Don't assume that a cheaper car is cheaper to lease - at work we have a chap with a poverty-spec 1.6 Astra who is paying more per month than the chap with an A3 saloon.
I guess at £500 that would mean £250 after tax plus add to that the £300 tax a car would cost me in BIK so £550 ish actual.
That's the way I work it out too. Company cars at my place are prob in the 30K - 35K bracket and I get near £600 cash allowance so £500 seems on the lowish side if anything.
I do around 25-30k miles a year so lease deals were too expensive .That means buying a diesel, and given the legislation that's coming into force regarding emission zones the depreciation could be huge in 3-4 yrs time when i come to move it on. This could wipe out any profit.
Another thing to consider is that all new diesels are being retested and the new (higher) emission figures will be used to calculate company car tax from 2020 which will add considerably to your tax bill.
IMO If you can have a decent hybrid/plug in company car go for that eg. the Merc E class plug in only costs around £70/month in tax!
If you cant get a hybrid/plug in opt out if you can get a good deal on a lease or not worried about resale value.
If your sticking with a diesel company car pay attention to the new emissions.
Fortunately my company have added Hybrids to the car list so I've gone for that option
Thanks for the info.
You may be buying the car but work is paying for it. Keep that in mind. The extra money in your pocket from not having a K code needs to be factored in as well.
My feedback thread is here.
It's also thirsty in the real world (30mpg rather than the 40mpg advertised)
Basically you've £700 a month to spend, you do lots of miles so you reckon PCP is out and you like a quick estate?
If it were me I'd take out a bank loan to be paid back at £700 a month over 3 years and save 20p per mile of my mileage allowance to put towards the next car. Then I'd buy a nearly new S4 Avant, C43 estate or 540i estate
My company pay 20p/mile but I claim the tax back on the remaining 25p/mile. Last year I got about £550 back.
Just ordered a VW Arteon on a stonkingly good deal.
I worked out the difference in fuel for the 280 V 190 diesel was about £800 a year based on 15k miles (and using 30mpg as honest John told me so). In context it doesn’t seem like too much to have a little more fun but will test drive both later this week.