Company car or cash?
Discussion
If you like the current cat then talk to the lease company and see what they will offer as a price to keep it.
I did this with a Skoda superb about 3 years back and the price they offered my meant I could have taken it straight to we buy any car and made around £1000. I got car I had specified myself, been serviced in the book and only driven by me and my wife since delivery. It rally was a no brainier.
I did this with a Skoda superb about 3 years back and the price they offered my meant I could have taken it straight to we buy any car and made around £1000. I got car I had specified myself, been serviced in the book and only driven by me and my wife since delivery. It rally was a no brainier.
CheesecakeRunner said:
One more thing I don’t think anyone has mentioned.
If you take the allowance and the company put in place a salary sacrifice scheme for cars, those cars are regarded as company cars and you’ll pay BIK.
This is true but SS schemes are generally EV or PHEV only (ours was at least) so the BIK is buttons.If you take the allowance and the company put in place a salary sacrifice scheme for cars, those cars are regarded as company cars and you’ll pay BIK.
I had an Audi E-Tron GT and I think the BIK was something like £80 a month.
Muzzer79 said:
This is true but SS schemes are generally EV or PHEV only (ours was at least) so the BIK is buttons.
I had an Audi E-Tron GT and I think the BIK was something like £80 a month.
Agreed yes, but it is there and will likely go up over the next few years. My Tesla is about £40 a month, so yes, not huge, but still something. I had an Audi E-Tron GT and I think the BIK was something like £80 a month.
My point was more people tend to think of a salary sacrifice as a private lease, when it isn’t. It’s a company car lease that you’re paying for not your employer.
RayDonovan said:
Does anyone know if you can still claim tax relief on mileage for EVs? Current HMRC guide is 10ppm but not sure if you can claim your prevailing tax rate on the difference between 10p and 45p (14p per mile in this case)
If it’s a privately owned or leased vehicle you’re using for business, the yes. CheesecakeRunner said:
RayDonovan said:
Does anyone know if you can still claim tax relief on mileage for EVs? Current HMRC guide is 10ppm but not sure if you can claim your prevailing tax rate on the difference between 10p and 45p (14p per mile in this case)
If it’s a privately owned or leased vehicle you’re using for business, the yes. I always took the allowance and didn’t consider the financials too much. Because it meant flexibility and meant I didn’t lose my car if I left my job. The company options were boring and the allowance funded about 50% of the cost of the car that I had at the time which was fine with me. The amount of business miles is a consideration because it used to cost me money in fuel to do business miles (plus w&t). I didn’t do that many so wasn’t a huge factor.
The sweet spot if you drive something that’s cheap and not new. Like an Insignia or an Infinity Q50.
With car price rises, I’m not sure you could run your current company car for the same net cost.
The sweet spot if you drive something that’s cheap and not new. Like an Insignia or an Infinity Q50.
With car price rises, I’m not sure you could run your current company car for the same net cost.
Done some quick sums this morning
Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
RayDonovan said:
Done some quick sums this morning
Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
Financially, you're better off in this scenario but don't lose sight of the fact that this is only because of the spectacularly poor company car scheme you have been in, which is steering you now into spending 160 quid of your hard-earned every month to drive an MG4.....Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
If you have any influence in this company, point out how much worse off you are even with your reduced tax bill - a car allowance is supposed to cover the cost of purchasing and running a car for work - how much car do you get for £360 a month (after tax) all in nowadays??
Cars have got a lot more expensive in the last 2 years - car allowances haven't kept up so now companies are seeing a great way to save money and just give you an allowance which would have bought a decent car.........5 years ago.
Muzzer79 said:
RayDonovan said:
Done some quick sums this morning
Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
Financially, you're better off in this scenario but don't lose sight of the fact that this is only because of the spectacularly poor company car scheme you have been in, which is steering you now into spending 160 quid of your hard-earned every month to drive an MG4.....Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
If you have any influence in this company, point out how much worse off you are even with your reduced tax bill - a car allowance is supposed to cover the cost of purchasing and running a car for work - how much car do you get for £360 a month (after tax) all in nowadays??
Cars have got a lot more expensive in the last 2 years - car allowances haven't kept up so now companies are seeing a great way to save money and just give you an allowance which would have bought a decent car.........5 years ago.
It's been a very continuous point as you can imagine..
RayDonovan said:
Muzzer79 said:
RayDonovan said:
Done some quick sums this morning
Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
Financially, you're better off in this scenario but don't lose sight of the fact that this is only because of the spectacularly poor company car scheme you have been in, which is steering you now into spending 160 quid of your hard-earned every month to drive an MG4.....Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
If you have any influence in this company, point out how much worse off you are even with your reduced tax bill - a car allowance is supposed to cover the cost of purchasing and running a car for work - how much car do you get for £360 a month (after tax) all in nowadays??
Cars have got a lot more expensive in the last 2 years - car allowances haven't kept up so now companies are seeing a great way to save money and just give you an allowance which would have bought a decent car.........5 years ago.
It's been a very continuous point as you can imagine..
Personally, I'd sink an extra £160 a month into a Tesla Model Y (available for £588 a month with 1 month deposit)
You're still saving cash and I think it's a nicer car (whilst by no means perfect)
Or, for just a tenner or so more, get into a Kia EV6
Muzzer79 said:
RayDonovan said:
Muzzer79 said:
RayDonovan said:
Done some quick sums this morning
Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
Financially, you're better off in this scenario but don't lose sight of the fact that this is only because of the spectacularly poor company car scheme you have been in, which is steering you now into spending 160 quid of your hard-earned every month to drive an MG4.....Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
If you have any influence in this company, point out how much worse off you are even with your reduced tax bill - a car allowance is supposed to cover the cost of purchasing and running a car for work - how much car do you get for £360 a month (after tax) all in nowadays??
Cars have got a lot more expensive in the last 2 years - car allowances haven't kept up so now companies are seeing a great way to save money and just give you an allowance which would have bought a decent car.........5 years ago.
It's been a very continuous point as you can imagine..
Personally, I'd sink an extra £160 a month into a Tesla Model Y (available for £588 a month with 1 month deposit)
You're still saving cash and I think it's a nicer car (whilst by no means perfect)
Or, for just a tenner or so more, get into a Kia EV6
Personally Ive been taking the cash for last 8 years, I don't do big milage 8-10k a year which keeps the wear and tear down and means the car is worth something when you get rid of it. I buy cars that are 18 months to 2 years old at the start, last was a BMW M135i it cost me £20k to start with, I kept it for 5 years, other than the usual service and MOT it had a set of tyres and brakes during my ownership.
Loan, insurance, tax were all less than my car allowance + BIK tax for a Golf GTD. When I changed it it was still worth £12,500 so had cost me £125 a month for the car in depreciation...... £60 a month to insure, £18 a month to tax and £50 a month for service / MOT
P/Xed it for a Mercedes C63S which Ive now had for 30 months
Depreciation £160 a month
Insurance £120 a month
Tax (RFL) £50 (will drop to £15 next year)
Service pack is £60 a month
Urgent running costs are £390 a month..... For a C63
I also put £200 in a slush fund which I also did for the M135i and it had nearly £10k in it when I sold the car.
If you are happy to buy something a couple of years old with a low interest rate bank loan you can end up saving significant money so long as you can keep the milage down.
Loan, insurance, tax were all less than my car allowance + BIK tax for a Golf GTD. When I changed it it was still worth £12,500 so had cost me £125 a month for the car in depreciation...... £60 a month to insure, £18 a month to tax and £50 a month for service / MOT
P/Xed it for a Mercedes C63S which Ive now had for 30 months
Depreciation £160 a month
Insurance £120 a month
Tax (RFL) £50 (will drop to £15 next year)
Service pack is £60 a month
Urgent running costs are £390 a month..... For a C63
I also put £200 in a slush fund which I also did for the M135i and it had nearly £10k in it when I sold the car.
If you are happy to buy something a couple of years old with a low interest rate bank loan you can end up saving significant money so long as you can keep the milage down.
RayDonovan said:
Muzzer79 said:
RayDonovan said:
Muzzer79 said:
RayDonovan said:
Done some quick sums this morning
Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
Financially, you're better off in this scenario but don't lose sight of the fact that this is only because of the spectacularly poor company car scheme you have been in, which is steering you now into spending 160 quid of your hard-earned every month to drive an MG4.....Combining the BIK savings per month (£447) + the net monthly allowance gives me around £810/month (excluding any claim back on mileage allowance)
Can PCP a MG4 EV long range for £426/month on 15k. Total running costs including insurance and maintenance comes to £522/month so quite a net saving.
If you have any influence in this company, point out how much worse off you are even with your reduced tax bill - a car allowance is supposed to cover the cost of purchasing and running a car for work - how much car do you get for £360 a month (after tax) all in nowadays??
Cars have got a lot more expensive in the last 2 years - car allowances haven't kept up so now companies are seeing a great way to save money and just give you an allowance which would have bought a decent car.........5 years ago.
It's been a very continuous point as you can imagine..
Personally, I'd sink an extra £160 a month into a Tesla Model Y (available for £588 a month with 1 month deposit)
You're still saving cash and I think it's a nicer car (whilst by no means perfect)
Or, for just a tenner or so more, get into a Kia EV6
JD said:
Having recently come out of the company scheme a few points:
1. Why on earth have you got a diesel! Can you not swap for an EV or PHEV in the company scheme, that will save you £300 a month in tax.
2. £600 is not a lot of money at all, £350 after deductions, then insurance will be 20% of that, tyres & maintenance 15% of that
I reckon I just break even on £900 a month.
On what planet is £600 a month nothing?1. Why on earth have you got a diesel! Can you not swap for an EV or PHEV in the company scheme, that will save you £300 a month in tax.
2. £600 is not a lot of money at all, £350 after deductions, then insurance will be 20% of that, tyres & maintenance 15% of that
I reckon I just break even on £900 a month.
If you want something nice but are happy to forgo diesel, there are some good Audi A6 deals about at the moment.
£653 down and £653 a month gets you into an A6 Avant S-Line. That's a completely all in cost, including maintenance.
£587 a month if you want to pay maintenance yourself.
https://www.selectcarleasing.co.uk/car-leasing/aud...
£653 down and £653 a month gets you into an A6 Avant S-Line. That's a completely all in cost, including maintenance.
£587 a month if you want to pay maintenance yourself.
https://www.selectcarleasing.co.uk/car-leasing/aud...
Chris32345 said:
JD said:
Having recently come out of the company scheme a few points:
1. Why on earth have you got a diesel! Can you not swap for an EV or PHEV in the company scheme, that will save you £300 a month in tax.
2. £600 is not a lot of money at all, £350 after deductions, then insurance will be 20% of that, tyres & maintenance 15% of that
I reckon I just break even on £900 a month.
On what planet is £600 a month nothing?1. Why on earth have you got a diesel! Can you not swap for an EV or PHEV in the company scheme, that will save you £300 a month in tax.
2. £600 is not a lot of money at all, £350 after deductions, then insurance will be 20% of that, tyres & maintenance 15% of that
I reckon I just break even on £900 a month.
The point here is that once you subsequently take tax off and maintenance, insurance, etc then £600 a month to buy a new-ish car isn't a lot.
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