To company car or not?

[Fab32]

So I have two questions; firstly is it worth my while and secondly would anybody like to suggest a car to consider?

So my boss (not a car person) sees me pulling into the car park today in my e36 2.8 auto and says why don’t you get yourself a company car it’s got to be better than driving that old thing! I didn’t bite and said I would look into it.

I reckon I do 11000 private miles and 8000 business miles a year and my business miles are currently paid at 45p per mile.


The company provides some of examples of what I could expect to pay for a lease hire car but I have to request a quote for a specific figure the examples are below.

Based on 7000 business and 10000 private miles per annum:
• Ford Fiesta 1.6TDCi Edge ECOnetic 5 door Car £55.63, Fuel £80.00
• Mini 1.6 Cooper D 3 door hatchback Car £87.55, Fuel £84.53
• BMW 1 Series 116d Sport 5 door hatchback Car £192.88, Fuel £100.00

There appears to be no limitation of choice on what car I can have apart from cost obviously. So I am awaiting your suggestions

[anonymous-user]

Don't forget to factor in BIK (company car) tax.

[Mr Gearchange]

Do you currently get a car allowance?

I looked into it when I changed jobs recently - tax was punitive for anything I wanted to drive so I opted out and took the money

[Fab32]

Mr Gearchange said:

Do you currently get a car allowance?

I looked into it when I changed jobs recently - tax was punitive for anything I wanted to drive so I opted out and took the money

No car allowance it was stopped a few years ago

[Mr Gearchange]

Fab32 said:

Mr Gearchange said:

Do you currently get a car allowance?

I looked into it when I changed jobs recently - tax was punitive for anything I wanted to drive so I opted out and took the money

No car allowance it was stopped a few years ago

So the offer is to have a car, for free, in lieu of nothing? I'd take that.

[Fab32]

Mr Gearchange said:

Fab32 said:

Mr Gearchange said:

Do you currently get a car allowance?

I looked into it when I changed jobs recently - tax was punitive for anything I wanted to drive so I opted out and took the money

No car allowance it was stopped a few years ago

So the offer is to have a car, for free, in lieu of nothing? I'd take that.

You've lost me!

[Mr Gearchange]

Your boss appears to be offering you a company car for nothing

The choice is usually car or an allowance.

If you currently get no allowance and he's offering you a car, then you should take the car.

Edited by Mr Gearchange on Tuesday 3rd September 21:11

[Fab32]

Mr Gearchange said:

Your boss appears to be offering you a company car for nothing

The choice is usually car or an allowance.

If you currently get no allowance and he's offering you a car, then you should take the car.

Edited by Mr Gearchange on Tuesday 3rd September 21:11

Have you read my first post?

I will have to pay for a lease car and I currently get 45p per business mile!

[Mr Gearchange]

But if you lease a car with your own money, where the company is not contributing anything towards that car, then you can still claim the maximum mileage allowance - because you are using your own car.

I fail to understand how this is a company car in any way? All you would be doing is here is getting yourself a new car - which you are paying for.

I assume from your inference that you wouldn't get 45ppm if you took the 'company car'? In which case you absolutely shouldn't do it.

Unless I'm still misunderstanding something - which is possible as I have had a drink or two

Edited by Mr Gearchange on Tuesday 3rd September 22:08

[anonymous-user]

you are getting 3600 (8000x45)pound a year ta free to do 8000 miles, say 30mpg is 266 galloons of fuel say 500 pounds. so around 50 pound aweek towards the E36, There is no way a company car would be worth it.
My general rule is if you are happy with a three year old car take the money if you must have anew car then a company car is the way to go.

[Fab32]

swerni said:

Fab32 said:

Have you read my first post?

I will have to pay for a lease car and I currently get 45p per business mile!

You also say you have been offered a company car,
It's kind of traditional that the company pay for these, hence the name " company" car.

I don't understand the benefit you get if you lease it.
Seems like a very odd scheme
Assuming, as you gain no benefit, you will still get the 45p per mile?

Perhaps it's not very clear, lease car, hire car, company car I was using it all as one and the same.

[h0b0]

Fab32 said:

Perhaps it's not very clear, lease car, hire car, company car I was using it all as one and the same.

It is obviously not clear to someone on this thread but I fear it is you OP.

You pay for a lease car and as such would be responsible for it. The company will give you 45p/mile (or whatever it is) in expenses to cover fuel, depreciation (if applicable) and maintenance. This is effectively the same tax situation you are in now.

A company car is where the keys are handed to you and you pay for the tax liability on the benefit of not paying the lease/finance. If your boss has offered you a company car then this is what he is offering.

I have a company car. It is a $35k 7 passenger AWD 3.5V6 Ford Flex. I pay about $300 a year in tax to run it. My company pay for everything else including tolls. (very handy where I live as my work journey yesterday involved going over the George Washington Bridge and returning via the Lincoln tunnel). I did not include this paragraph for explanation purposes, I just wanted to be a smug bd.

[Mr Gearchange]

I looked at running a 535d as a company car and it was going to cost me £5000 per year in tax!

[Jim909]

I have a limited company and have been looking into a company car, you basically get bummed for tax unless you have a super efficient co2 car(less than 99), which I really don't want to drive in all weathers for 10k-15k miles per year.

Or

You get a comercial vehicle, my boss has just got a VW Amorak which is pretty tidy company car/van

[Fab32]

Jim909 said:

I have a limited company and have been looking into a company car, you basically get bummed for tax unless you have a super efficient co2 car(less than 99), which I really don't want to drive in all weathers for 10k-15k miles per year.

Or

You get a comercial vehicle, my boss has just got a VW Amorak which is pretty tidy company car/van

I drove behind one of those today with a bluemotion badge, they are massive things

[woody2846]

Jim909 said:

Or

You get a comercial vehicle, my boss has just got a VW Amorak which is pretty tidy company car/van

£750 flat fee for a van/pickup with over a one tonne payload.

[edc]

Jim909 said:

I have a limited company and have been looking into a company car, you basically get bummed for tax unless you have a super efficient co2 car(less than 99), which I really don't want to drive in all weathers for 10k-15k miles per year.

Or

You get a comercial vehicle, my boss has just got a VW Amorak which is pretty tidy company car/van

I take a compnay car even though I don't need one. I 'downgrade' to go cheap and have an Audi A1. This is the commuter, run around dump it anywhere car. Other people buy a shed but this works with the combination I have and circumstances. It is under the 99 threshold. Company car insurance means anyone with my (company) permission can drive it and if I really needed to I can short term swap for one in the ppol or a colleague's car.

[zedx19]

So have we got to the bottom of what OP has been offered? Sounds to me like the boss suggested leasing a new car as OP drives an old banger? Nothing to do with company cars at all, company isn't paying anything towards any car, just 45p per mile regardless of what OP drives.

[The Beaver King]

From what I understand, your boss has suggested you get a new car. He has used the term 'company car' but incorrectly.

I have a company car. It's a company car because:

• My company ask me to pick a car from a list,
• I pick a car and they give it to me with a fuel card,
• They pay for everything (cost of lease, tax, insurance, services etc) and the government tax me for the privilege (based on CO2 emmissions)
• I get full use of the car, but ultimately it is still owned by the company so I have to treat it as such.
• I don't claim any business mileage, I just tell them how many business miles I have done and they take it out of the total fuel used.

Your boss has suggest you get a company car, but;

• You will be paying the lease,
• You will still be claiming back business miles.

Probably not worth it, unless you get some super eco model that actually makes you decent money on your business miles.

[Fab32]

The Beaver King said:

• My company ask me to pick a car from a list,
• I pick a car and they give it to me with a fuel card,
• They pay for everything (cost of lease, tax, insurance, services etc) and the government tax me for the privilege (based on CO2 emmissions)
• I get full use of the car, but ultimately it is still owned by the company so I have to treat it as such.
• I don't claim any business mileage, I just tell them how many business miles I have done and they take it out of the total fuel used.

This is what I have been offered, I can have any car with any options as long as it's under 139g/km. I will be provided a fuel card but need to say how many private miles I will do in a year up front and pay it pro rata monthly.

I will be expected to keep the car for three years, they will pay for all the servicing, insurance, breakdown etc etc.

Have we finally got to the bottom of what I have been offered?