Company car or cash and what estate or 4x4
Discussion
Due to change my company car soon or can take car allowance which meaan I would be around £500 a month in my hand extra (this is including the tax I currently pay for the car) For the car I can have a Audi A4 or BMW 320 or similar (has to be 4 dooor, not "a hot hatch") obviously with all servicing. repairs, tax,insurance etc included.
Trying to work out if id be better off buying something myself and having extra cash in my pocket or again commitiing to a barnd new car for 3 years.
If I dont take the company car can spend £4 to 5 k on something which would really have to do at least 35mpg and ideally be capable enough to carry a very big lump of dog up the local hills :-) so thats why I was thinking 4x4 or estate
Any thoughts on either question would be appreciated
Trying to work out if id be better off buying something myself and having extra cash in my pocket or again commitiing to a barnd new car for 3 years.
If I dont take the company car can spend £4 to 5 k on something which would really have to do at least 35mpg and ideally be capable enough to carry a very big lump of dog up the local hills :-) so thats why I was thinking 4x4 or estate
Any thoughts on either question would be appreciated
depends on your mileage. I think I worked out unless I was doing over 32k miles a year I was better off taking the money and running my own car.
you wont be paying company car tax and you can claim tax relief off business miles for using your own car for work.
I pocket the money and run whatever takes my fancy at the time, I've had 3 jags and my current Volvo doing this. Just have to account for all running costs.
you wont be paying company car tax and you can claim tax relief off business miles for using your own car for work.
I pocket the money and run whatever takes my fancy at the time, I've had 3 jags and my current Volvo doing this. Just have to account for all running costs.
Well do your sums and you may find out it works in your favour to pocket the money. You claim tax back of the first 10k miles at 40ppm and 28ppm (I think!) for anything above. So you can get a nice lump sum at the end of the year, or what I did was front load my tax code so I paid less tax every month. That's fine if the job is safe and you don't intend to leave half way through the year, otherwise it could get tricky to correct.
If you do the lump sum that can go towards annual maintenance.
Take that into account, add up a new set of tyres a year, tax, MOT etc... Maybe buy a warranty.
Look at diesel and LPG options to save more money.
Above all you can have a more fancy car by buying your own. Everyones position is different but for me it works out nicely.
If you do the lump sum that can go towards annual maintenance.
Take that into account, add up a new set of tyres a year, tax, MOT etc... Maybe buy a warranty.
Look at diesel and LPG options to save more money.
Above all you can have a more fancy car by buying your own. Everyones position is different but for me it works out nicely.
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