Company car or cash?
Discussion
Hopefully getting a little closer to being able to switch from a company car to a car allowance
Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
Something else which may be an option is to declare 100% business use of the company car which means you won't pay any tax however it is completely illegal to use the car for anything non-business related. Not a problem for households with multiple cars but it depends on your circumstances. A friend of mine at my old company did this and funded the purchase of a 996 C4S with the saving (took out a loan to buy the C4S and what he saved in tax covered the Porsche which is now 100% paid for). He's ended up with a £20k car with what he's saved in tax payments. Thought I'd mention it as a curveball option!
I'm in the same quandary as you OP - My company car goes back in August and I don't particularly want an EV (in fact very few new cars interest me), therefore I am considering taking the car allowance and financing (or buying outright) something much more useful to me than what would be available as a company car. We've always been a three car household (Land Rover Disco, sportscar of some sort and company car). I'd like to be a two car household but we need the utility of a large 4x4 so I'm thinking I'd replace the Disco with something just as utility but much more modern (EG Disco 5 or full fat RR or Volvo XC90 up to 5 years old).
There is no way I could get for example a new Disco or Defender on the company car scheme or anything as large as a Disco in fact, but the savings in tax + additional car allowance £ would pay for something quite nice and ultimately something I'd own outright....
I've just got to figure out what the smartest financial move is!
I'm in the same quandary as you OP - My company car goes back in August and I don't particularly want an EV (in fact very few new cars interest me), therefore I am considering taking the car allowance and financing (or buying outright) something much more useful to me than what would be available as a company car. We've always been a three car household (Land Rover Disco, sportscar of some sort and company car). I'd like to be a two car household but we need the utility of a large 4x4 so I'm thinking I'd replace the Disco with something just as utility but much more modern (EG Disco 5 or full fat RR or Volvo XC90 up to 5 years old).
There is no way I could get for example a new Disco or Defender on the company car scheme or anything as large as a Disco in fact, but the savings in tax + additional car allowance £ would pay for something quite nice and ultimately something I'd own outright....
I've just got to figure out what the smartest financial move is!
Thanks but we're strictly forbidden for trying to declare company cars as "Business use only" (and it wouldn't work for us anyway).
Lots of different options in how to move forward with replacing the company car, I would prefer something nice and comfortable as I need to do a 450 mile round trip once per month at least (and I like having a nice car!)
EVs appeal to my nerdy side, I have no issues with charging at home and the office and i'm able to plan charging around trips / longer journeys with few issues.
Lots of different options in how to move forward with replacing the company car, I would prefer something nice and comfortable as I need to do a 450 mile round trip once per month at least (and I like having a nice car!)
EVs appeal to my nerdy side, I have no issues with charging at home and the office and i'm able to plan charging around trips / longer journeys with few issues.
RayDonovan said:
Hopefully getting a little closer to being able to switch from a company car to a car allowance
Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
You are however totally ignoring the fact you are putting in £10k of your own money…Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
Still no hybrids or EV on the company car list?
JD said:
RayDonovan said:
Hopefully getting a little closer to being able to switch from a company car to a car allowance
Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
You are however totally ignoring the fact you are putting in £10k of your own money…Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
Still no hybrids or EV on the company car list?
I am putting in £10k but the car will retain some value after 4 years and I'm 'saving' £363 compared to my current situation.
The other option is to keep in the scheme and keep spending £450/month in BIK with nothing to show.
I only ever had one Company car, a Rover 214 SLi I got in March 1992 partly because BIK tax was less than the two 1.8 litre Sierra alternatives I was offered - and it was more powerful anyway!
But my employer went bust and I had to give it back in December 1992.
So security of employment might be worth considering!
Which is probably why the next time I had a job with the offer of a company car I took the monthly allowance and an interest free loan to fund it, although the loan was taxable as a BIK if it was over £5K. So I borrowed £4,800 over 4 years, which was handy as I left in less than 3 years but still had a car.
But my employer went bust and I had to give it back in December 1992.
So security of employment might be worth considering!
Which is probably why the next time I had a job with the offer of a company car I took the monthly allowance and an interest free loan to fund it, although the loan was taxable as a BIK if it was over £5K. So I borrowed £4,800 over 4 years, which was handy as I left in less than 3 years but still had a car.
I’m on an allowance (£700pcm) as our company cars are diesel only. There are some ’rules’ in our contract but they’re open to interpretation and my boss basically said ‘no sheds’. I’m currently running a pcp but going to get out of that and look at spending £8-10k on a barge to keep for 2-3 years (A5/A6 C/E class are the main contenders)
Though something to consider due to much greater cost of buying and then running a car the allowance doesn’t go very far compared to four years ago. Mine is £300 after tax, and even if you add the saving difference of a company car in tax (which obv would be electric so low BiK) there’s only around £4k per annum to buy, insure, tax, service etc. Couldn’t even get my current Superb like for like now at that let alone including running costs!
^ This is very true. Cost of cars has increased and insurance so my allowance doesn’t go as far as when I first did the sums.
I worked out tax savings and additional allowance gave me £6k to work with.
I’m not sure I break even anymore and I’m considering going back to a company car possibly a PHEv with low BIK tax.
Don’t for get to factor in the uncertainties like replacing damaged wheels and tyres due to potholes etc too.
I worked out tax savings and additional allowance gave me £6k to work with.
I’m not sure I break even anymore and I’m considering going back to a company car possibly a PHEv with low BIK tax.
Don’t for get to factor in the uncertainties like replacing damaged wheels and tyres due to potholes etc too.
JD said:
RayDonovan said:
Nope, no EVs or Hybrids due to lease costs
I just don’t think you are looking in the right places.What is your company allowance and required deal?
Leaseloco have a phev Leon estate for £360 a month on 10k miles, or a Cupra Formentor for £380
RayDonovan said:
JD said:
RayDonovan said:
Hopefully getting a little closer to being able to switch from a company car to a car allowance
Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
You are however totally ignoring the fact you are putting in £10k of your own money…Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
Still no hybrids or EV on the company car list?
I am putting in £10k but the car will retain some value after 4 years and I'm 'saving' £363 compared to my current situation.
The other option is to keep in the scheme and keep spending £450/month in BIK with nothing to show.
TwigtheWonderkid said:
RayDonovan said:
JD said:
RayDonovan said:
Hopefully getting a little closer to being able to switch from a company car to a car allowance
Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
You are however totally ignoring the fact you are putting in £10k of your own money…Still favouring a 2021 Tesla Model 3 LR, sums as below
£10k savings
£15k loan
£352/month for the loan (£15k over 48 months)
£65/month for the insurance (checked and have been quoted)
£50/month into savings for tyres and servicing
Total running costs of £437/month
BIK savings of £450/month & £7k PA (£350 net per month) give a total monthly budget of £800.
£363 monthly saving v company car (£800-£437).
Work will pay me 15p per mile, but I can claim the tax relief for the first 10k which comes out at 12p per mile. That will give me 27p per mile for business use and should cost me around 3p per mile to run, based on EON EV tariff at 9.5p per kWh. Even using Tesla Superchargers on a longer journey I would still be in the positive.
Still no hybrids or EV on the company car list?
I am putting in £10k but the car will retain some value after 4 years and I'm 'saving' £363 compared to my current situation.
The other option is to keep in the scheme and keep spending £450/month in BIK with nothing to show.
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