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Discussion Starter · #1 ·
My car is a company one and it is the bain of my life with all of its ( never-ending ) problems. So I'm considering opting out but am not 100% sure if its the right thing to do.

The car costs me around ?200 / month in tax including private fuel

I do around 8000 business miles per year ( plus 10000 personal ) so that would give me about ?270 / month on average in mileage allowance

I can put a deposit down on "something" of around ?7K and would keep the car 4 years / 80K.

What would you do ? Just think, oh, its not mine, its not the car I'd choose to have, what do I care ? Or opt out and "buy" something else that I actually want ?
 

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I have been thinking the same recently and I do similar mileage to you.  I think I have decided to stick with the company car for a number of reasons, all 'problems' are fixed by the lease company and there is no need to worry about servicing, tyres, tax, insurance or breakdown cover.  Only problem I have is that I'm restricted to Fords.
 

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Discussion Starter · #3 ·
I am restricted to a budget of " the same that you spent last time " ie around ?21K. We used to be able to buy whatever we wanted as long as it fits the budget and has 4/5 doors. Now its strictly no BMW / Merc

I wouldn't be buying outright - I'd be doing a PCP or similar...
 

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Generaly, if you do more than 10k private miles per year (assuming your private mileage is paid for by the company) you are better off with a company car financially.

However if you dont care whether your car is brand new, and you arent fussed about the hassle-free motoring you get with a company car, then a car allowance might be better for you.
 

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Discussion Starter · #5 ·
ooohhhh - aren't you an accountant ?

Apart from mileage at ( say ) 40p / mile, what else can I claim back ? I seem to remember someone saying 50% of the VAT on the finance payments ? Is that right ?
 

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Well the free fuel is worth ?1200 per year at 35mpg 10,000 miles.

Insurance ?400, servicing ?400, road tax ?130, tyres ?200

Depreciation will be ?2000-5000 per year on anything new for 3-4 years.

So ?2330 running costs, plus ?2000 best case depreciation gives you ?4330 per year, verses ?2400 tax and ?3240 mileage allowance gives you

?5640 better off for not having the company car.

?4330 per year to run your own car. This is best case, and if you buy something that depreciates faster, it'll be a lot worse.
 

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Discussion Starter · #7 ·
not sure about ?2K depreciation pa [*-)]. I'm sure it'll be worse than that.

I'm thinking of buying a 530d sport or a RRS - just waiting for finance quotes ATM
 

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ooohhhh - aren't you an accountant ?

Apart from mileage at ( say ) 40p / mile, what else can I claim back ? I seem to remember someone saying 50% of the VAT on the finance payments ? Is that right ?
Not unless you are VAT registered and therefore self-employed.

All you can really claim back as an employed person is tax on the difference between what you receive for mileage per mile, and the Inland Revenue approved rate (40p).

Not the answer you wanted [:(]
 

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I took the allowance. Our choice is between a basic diesel varaiant of the Vectra, Avensis, Laguna or 407 so either cash in to have what you want or get stuck with a car you don?t want. No brainer. Financially I am better off this way too especially seeing as my fuel is paid for too.
 

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not sure about ?2K depreciation pa [*-)]. I'm sure it'll be worse than that.

I'm thinking of buying a 530d sport or a RRS - just waiting for finance quotes ATM
Yes Iknow. 2k depreciation if you buy a golf a few years old. 5k on the 530D.

Basicaly you'll be worse off. I do 12000 miles a year at 40p + ?5k in the sallary and it just about funds the 330D (which I bought for ?23K at 15 months old)
 

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I also have the same problem, currently I have a ford focus estate which I have on the company scheme. In the last year I have done aprox 35K miles. They have recently ask if I would like to 'opt out' this would mean that I would get ?400pcm in my wages. I would need to cover the insurance, tax and general up-keep of what ever car I get. Any Ideas??? Would it be best for me to stay with the car I have got??
 

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I also have the same problem, currently I have a ford focus estate which I have on the company scheme. In the last year I have done aprox 35K miles. They have recently ask if I would like to 'opt out' this would mean that I would get ?400pcm in my wages. I would need to cover the insurance, tax and general up-keep of what ever car I get. Any Ideas??? Would it be best for me to stay with the car I have got??
What was the business/private miles split? And how much would you get paid per mile for business miles from your employer?
 

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Discussion Starter · #14 ·
if you "give up" your company car, is your employer "obliged" to give you an increase in salary ? Obviously I'd save the ?200 / month in tax. The saving to them ( excluding servicing, tyres, insurance, FRL ) would be ?21000 + around ?10000 in fuel over 4 years...so I'd guess around ?8500 per year taking everything into account ?

Are they therefore obliged to increase your salary by circa ?700 / month so that neither party is better or worse off ? Or is there no hard and fast rule ?
 

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They aren't obliged to give you anything. Nor are they obliged to give you 40p per mile to use your own car for business - most businesses who offer you a company car or salary alternative then pay you the rate per mile it would cost to fuel the company car (12p per mile or thereabouts).

I've had company cars, opted out gone back in and so on! I resent paying in excess of ?300 a month in tax on my car (a 330d SE) and the loss of the extra salary (?700 a month gross, ?420 after tax) but then i resent paying for new tyres, servicing, insurance and everything else (especially diesel!) when I run my own. I like the lack of risk with the company car - it breaks down, I get a hire car in its place that they pay for, it has an accident, I get a car whilst its repaired and if its a write off I get a new one without the hassle with insurance or funds.

But only you can decide how much that is worth!

By the way, had a RRS demo a couple of weeks ago - diesel HSE with extras. Very nice armchair but sluggish and no fun on the country roads or in town. The 530d is an altogether different proposition - but what about an E90? I have kids and my car is plenty big enough in back for teenagers. It drives superbly, is very comfortable and goes pretty well! And you can't see the looks when you are in it! As an SE its also discrete and makes a great Q car....

Ian
 

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if you "give up" your company car, is your employer "obliged" to give you an increase in salary ? Obviously I'd save the ?200 / month in tax. The saving to them ( excluding servicing, tyres, insurance, FRL ) would be ?21000 + around ?10000 in fuel over 4 years...so I'd guess around ?8500 per year taking everything into account ?

Are they therefore obliged to increase your salary by circa ?700 / month so that neither party is better or worse off ? Or is there no hard and fast rule ?
As a comparison, my wife gets the option of a ?26k car, fully expensed, or ?5,500 per year extra salary.

You'd be doing very well indeed to get ?700 per month IMO [:(]
 

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You'd be doing very well indeed to get ?700 per month IMO [:(]
Agreed.

I get ?7,300pa gross and 14.2 per mile.

I do approx 22k pa of which 20k is business mileage.

The mileage claim just about covers my petrol costs in the 4motion and
the tax rebate at the end of the year pays the insurance &
maintenance.

I only kept the 4motion as I've had it over 3 years now and will have to pay out more to change car.

It suits me to keep the money each month.

If I needed to get a new car I'd buy my own as opposed to taking a company diesel.

Focus ST or Golf GTi on contract purchase can be had for around
?350pm which is what is left once the taxman has had his share of the
allowance.
 

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I do approx 22k pa of which 20k is business mileage.

This is the bit that makes it viable for you - I take it then that you must be home based so nearly all travel is business. Mind you, I do more than 2k per year just watching my football team and going on holiday!

If I needed to get a new car I'd buy my own as opposed to taking a company diesel.

Oh, I'm quite happy with my company diesel - find the 330d much faster in real driving than most petrol cars!
 

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Discussion Starter · #19 ·
By the way, had a RRS demo a couple of weeks ago - diesel HSE with extras. Very nice armchair but sluggish and no fun on the country roads or in town. The 530d is an altogether different proposition - but what about an E90? I have kids and my car is plenty big enough in back for teenagers. It drives superbly, is very comfortable and goes pretty well! And you can't see the looks when you are in it! As an SE its also discrete and makes a great Q car....

Ian
Hi Ian. I test drove a year old E90 325i about 2 months ago - it was around ?22K with a list of around ?30K. IMO, nothing special and no reason to change up from my wife's E46 320 sport.

I must admit that the performance ( as well as the possible hike in RFL to ?2K pa ) of the RRS is putting me off a bit.

Maybe an E90 330d (sport ? ) like you say....the RRS was ?7K down and ?540p/m for 48 months based on list of ?45.5K.

I reckon with the same deposit, I could get an E90 for under ?400p/m ?
 

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According to the lease company and a friend of a friend, BMW dealers are having to really go out and sell to meet targets now - so discounts are there to be had. I have SE spec because after my E46 Sport I decided I needed a softer ride. Also makes it something of a Q car! Mine lists at nearly ?31k (a standard car with leather and metallic) - I reckon you should probably be able to take that down below ?29k with discounts) so with 7k down and over 4 years (on PCP sort of thing) it ought to be below ?400! With 3 + 47 lease, my car is ?520 per month including maintenance - that would be plus VAT if not business user!

Ian
 
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