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Discussion Starter · #1 ·
Do I opt out?

My current car is a 2003 Focus Ghia TDCi and is due for renewal early next year. I need to order my new company car in about a months time but can't decide whether to opt out or not.

New car would be a brand new (07 reg) Focus 1.6 TDCi Ghia with all the toys. All servicing, tyres, breakdowns, tax, insurance, etc paid for as well as a fuel card. So nothing to pay for. Plus I've never had a brand new car before!

Opting out would give me enough for a £13k loan (over 5 years) once servicing, tax, insurance, tyres, breakdown, fuel etc is paid for. Down side is that I would lose my fuel card and need to pay for fuel and claim it back. Car must be 4 seater and less than 5 years old (so there is no point getting a 2003 car as I could only keep it for a year). What 'fun' cars could I get around that price? Have thought about Ibiza Cupra, also considered 2 year old Mondeo ST TDCi and Vectra SRI CDTis.

The more I think about it, the more I think it's better to stay in.
 

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I'm out and luckily enough do not to have to have a newer car which saves £££'s. The factors that aided me in making the decision were;

1, Being able to run a 3 year old car and run it indefinitely.

2, That doing 30k a year means I get a nice rebate from the Inland revenue. The break even for me was >15k miles a year.

If I hadn't been able to satify those two criteria I would have stayed with a Company Car.

It sounds like you need to provide a car under 4 years old in which case your are probably better staying in. As for fun cars at 15k, unless you go older, it'll be hard to do.
 

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You can't really argue with free fuel. Thats a good deal, and plus it means you don't get yourself in debt to do it. It may be worth finding out if there are any decent cars in your company that are available following staff leaving or such like. A colleague of mine was set to pick up a new Honda Civic diesel when he looked on the available car list through our HR department and found a 18 month old BMW 320cd which he could go for. HR were happy to let him have it as it meant they weren't forking out on another lease. May be worth a try just in case.

Keep us posted on what you go for! [:D]
 

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This is one of those decisions that is partly financial (where its straight facts) and partly risk / requirements / interest etc which is anything but fact.

If you opt in you get a new car, no risks (if someone nicks it you get a hire car, is someone drives into it you get it repaired no hassle) - but you are stuck with it for x years, you are limited what you can have and it costs you (dead money). If you opt out, you can choose what you want (within reason in your case!), you can swap it when you want, you can change your car and spend according to lifestyle requirements, but you bear the risk - depreciation, insurance, reliability issues etc.

I'm an accountant and can do the numbers all day long. Sometimes I opt in, sometimes I opt out - it depends on my recent experience. Currently running an E90 330d SE as a company car - because i couldn't afford the same if I paid myself, because I live 55 miles from work, and because it freed up the cash of my last own car - bought when opting out - which now pays for a new conservatory / foreign holiday. Reduction in net pay is not good (its pay day tomorrow so its topical!) but you can't have it all.

In your position, I'd.....leave you to make the decision. I think you will go with car - partly because of restrictions on own transport and partly for the new car feel!

Ian
 

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God, I'd kill for a free car/fuel/servicing/mot/tax etc! Think of all the money you'd save, even if it is a 90bhp focus!

I've driven the Ford Connect van with the same engine and it's not fast but it ain't slow either. I know where I'd go and I'd choose it in a second!
 

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It's going to depend on what the car allowance is, I opt out and have done for the last 6 years now.

But I get a decent car allowance and also claim my bussiness miles back each year on my self assesment.

I didn't opt out of the car scheme to make money but I am financially better off now than I would have been with a company car. Plus I get to swap and change as I see fit the thought of being stuck with the same old car for 3 years doesn't appeal! The other added bonus is my current company offers only a hand ful of cars on the scheme.

Don't forget it's not only the car allowance that you have but the extra money you currently pay in tax.

J.
 

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i stayed in, used to do 25k a year in my 4motion which was interesting a tank every 2.5 days, then had the option to take a mk5 gt tdi so went for it, will be changing in 6 months or so, probably for an Alfa Brera 2.4diesel

but it really is down to the individual circumstances, i couldnt do with the company tractor as my only car, but i have kept the 4 motion
 

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will be changing in 6 months or so, probably for an Alfa Brera 2.4diesel
Hope you have a very high lease allowance then - looked at the Alfas myself when I picked my last car but the 159 with same engine was as much as the 330d I s elected - and the Brera was significantly more. I'd say its at least £300 a month more than the GT TDi you now run!
 

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will be changing in 6 months or so, probably for an Alfa Brera 2.4diesel
Hope you have a very high lease allowance then - looked at the Alfas myself when I picked my last car but the 159 with same engine was as much as the 330d I s elected - and the Brera was significantly more. I'd say its at least £300 a month more than the GT TDi you now run!
i have the option to pay extra from my salary if the allowance isnt enough, and since i had my golf i have had a promotion, by then i would more than likely have had another - but thanks for the heads up
 

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Discussion Starter · #10 ·
Keep us posted on what you go for! [:D]
OK, looked into it some more and for the hastle involved I think it's better to stay in so I've just ordered a Focus 1.6 TDCI 110 DPF Ghia 5 door (Euro 4) in sea grey with black interior - no optional extras. It'll be a lease car and will be delivered 1 March 2007 - my first new car after 16 years of driving!
 

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Sounds like you made a good choice there....

After all, you're getting a new motor and its costing you nothing. That has to be a good deal.

Those Focus's are decent cars as well so I'm sure you'll like it. [:D]
 

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Sounds like you made a good choice there....

After all, you're getting a new motor and its costing you nothing. That has to be a good deal.
He still has to pay tax on it and if he opted out he would have been given a monthly allowance [;)]
 

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if he opted out he would have been given a monthly allowance [;)]
Is that true ? If it is your own choice to hand your company car back, does the company have to give you a monthly allowance ? And how do they work out what that allowance should be? Is it the cash equivalent of the car[:^)]
 

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Discussion Starter · #18 ·
I would get an allowance. I have the choice of either a £17,000 Focus Ghia for 4 years or £4,500 a year (less the tax). Bear in mind that I have to buy and run the car for that figure.

And the Focus isn't free it's costs me £55 a month in tax!! [:p]
 

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based on that, you are best in, yes.

My dilema is that I get all my fuel paid. So if I do (say) 8000 private miles per year at 35 mpg thats roughly 1020 litres ( excuse me mixing my mpg with litres ! ) or around £920 nett or £1540 gross.

Then theres leasing a car ( call it the same as I have for arguments sake ) - thats £350 per month - or £7000 og gross income.

Then there's insurance - £50 / month and maintenance - call that £50 / month too - that another £1650 gross.

Right, now i'm upto £10190

But maybe I'm gonna do 10000 business miles a year at 40p / mile for the 1st 8000 then, 25p for the next 2000 so thats £3700 I get back.

So, I'm back to needing abt £ 6500 extra per year in my salary

Are they gonna give me that ? Nope
 

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if he opted out he would have been given a monthly allowance [;)]
Is that true ? If it is your own choice to hand your company car back, does the company have to give you a monthly allowance ? And how do they work out what that allowance should be? Is it the cash equivalent of the car[:^)]
Most companies would rather you took the allowance as it is easier for them. I can now see why Matt has taken the car over the allowance as it's not that generous. After tax he would be left with £300 plus the additional £55 he currently pays only leaves £355.

My previous job came with a car and fuel fairy which I could keep even if I did opt out. My fuel bill each year was around £5000 but I was running an R32 for 9 months of that last year - £200 a week in fuel soon adds up. Luckily I travelled for half the year...

I'm assuming Damian your car limit is about £20K? If so opting out should equat to around £500-£550 a month. Might be worth asking. Bear in mind most companies also have a policy if you opt out the car has to be no older than x years, 4 seats etc, that kind of thing.

J.
 
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