Car allowance or company car?

[truman]

Yes I am, so that expense would have to come out of the monthly allowance. What else would come out of the allowance? Car tax? Breakdown cover?

I expect they aren't covered under a lease agreement?

 

I suppose the pro side of leasing a car is that I'll not be stung for personal tax in the way I will for having a company car, but having to pay for things like insurance kind of negates that.

 

You can add thses things to a lease agreement..we have fully maintained cars so the leasing company pays for all reapairs VED,tyres etc etc..all we have to do is put fuel in..

[Lucifer]

I'm in a position where through my day job I am being offered the choice of a company car or a car allowance.

 

I cannot decide which to go for and the maths part is confusing me.

 

My car allowance is £325 per month - there'd be tax and NI to come out of that. I understand I'm paid 15p a mile after that for any mileage I do.

 

If I go for a company car I'm told I can only have a Focus or an Astra to the tune of £16K. I'd be taxed around £50-£60 a month based on the list price and the emissions. I'm a 20% rate tax payer. I get 15p a mile for my fuel, I buy it and claim this back.

 

My business mileage is around 13,000 p.a and my personal mileage is around 5,000.

 

My own car is a 4x4 and although it runs on LPG is uneconomical to run to do this level of mileage so I'm ready to change it.

 

I've had a look at the calculators that are out there on line, but they've confused me even more. There's nobody at work who is prepared to advise me. Any help would be appreciated.

 

Company car every time, a little more tax but complete piece of mind, if you prange the company car another is provided, if you prange yours, you have to provide another so you have to make sure your insurance covers that and don't forget the amount you have to stand to if you want to get your premium down.

[Classic Rock]

Pranging the car isn't high on my agenda, I've not been in a prang since 1993. Touch wood!

 

It's the maintenance and depreciation that's the issue.

 

I've had a look at the cash or car website suggested above. It's saying I'd be better off leasing a car, although I've already noticed a few glitches with its calculations, such as not taking into account the car allowance is taxable.

 

The easy life of company car does sound very attractive, but I just don't fancy an Astra or a Focus and even having sat here reading up on it all for the last couple of hours I'm more informed but still can't decide which is best financially and emotively.

[Lucifer]

Pranging the car isn't high on my agenda, I've not been in a prang since 1993. Touch wood!

 

It's the maintenance and depreciation that's the issue.

 

I've had a look at the cash or car website suggested above. It's saying I'd be better off leasing a car, although I've already noticed a few glitches with its calculations, such as not taking into account the car allowance is taxable.

 

The easy life of company car does sound very attractive, but I just don't fancy an Astra or a Focus and even having sat here reading up on it all for the last couple of hours I'm more informed but still can't decide which is best financially and emotively.

 

Just bear in mind "when one door shuts, another one slams to", if you status is demenoured by the cars on offer, who knows what you will need.

[Classic Rock]

Just bear in mind "when one door shuts, another one slams to", if you status is demenoured by the cars on offer, who knows what you will need.

 

Not sure what you mean by that, but if it is as I suspect a dig at me wanting a bigger car, then that's far from the truth.

 

The Astra and Focus are not particularly economical and I was hoping for a smaller car with lower emissions.

 

I've recognised that the car I drive at the moment isn't economical for the miles i do.

 

It's practicality and economy I'm seeking, not a status symbol.