Time for company car?

bluehighs

Hi! Got a new job with option of taxable company car or 40/25ppm to run my own car. Presently got a slighty rattly 110k miles mini cooper s (no finance outstanding) and expect to do c.25k miles a year. Would like a new freelander diesel or equivalent but the cash could be used on further upgrading the house. Anyone got sound advice as petrol/diesel/insurance etc is getting bl**dy expensive! :beer:

Rainmaker_uk

sorry what is 40/25ppm?

daveyjp

40p and 25p per mile for running own car.

Is 40p a mile enough to fund running a new car which you'll want to spend 25,000 a year in? With fuel prices on the rise I doubt it is.

I'd pay the tax and have a hassle free company motor.

bluehighs

Sorry, 40/25 pence per business mile (about £6000 per year). I could keep the mini and cross fingers on repairs etc!

spiro

daveyjp wrote: »

40p and 25p per mile for running own car.

Is 40p a mile enough to fund running a new car which you'll want to spend 25,000 a year in? With fuel prices on the rise I doubt it is.

I'd pay the tax and have a hassle free company motor.

Its 40ppm for the first 10k then it drops to 25ppm so the total over the year would be £7750.

Need to remember you need class 2 (business) insurance.

The tax you pay on a company car depends on its emissions and I have seen in other threads that there is an online calculator to work out the tax liability.

Lum

It always used to be that the company car, while hassle free, ended up costing you more wheras it was possible to make a profit doing 40/25.

Nowadays with the price of fuel and insurance going through the roof with no end in sight, people are struggling to break even, so even with the tax the company car option is looking more and more attractive. It's certainly helped my finances!

That said, I don't even want to think about how much tax you will pay on a company Freelander o_O. You'll be looking at something like a diesel Ford Focus or similar to keep the cost down.

alleycat`

Unless you have a very generous company car policy you won't be getting a freelander2 (and the tax liability wouldn't be much fun either).

If you want the true(ish) 4x4 aspect you might just about get away with something like a Skoda yeti (@159 CO2).

If you just want the tall "king of the road" driving position i'd expect you might able to get a 1.7crdi IX35 or 1.8 Mitsu ASX (in 2wd) with CO2 in the 135/140 range.

None of the above would be great on mpg and @10 or 11ppm (company rates) might leave you more out of pocket on fuel.

Octavia greenline, Ford Focus or the like might be more what you'll be looking at.

spiro

Go here http://www.comcar.co.uk/newcar/companycar/taxcalc/g1select.cfm

The cheapest Land Rover Freelander 2 2.2 eD4 S will cost you about a £1k in tax on a £30k salary or nearly £2k including fuel benefit.

In comparison a Ford Focus 5dr 1.6i TDCi Style 90PS will cost you £430 in tax on a £30k salary or nearly £900 including fuel benefit.

bluehighs

Good link and tax calculator, thanks. Seems there is a gap in the market for an "eco" off roader type! keeping the old car and pocketing the cash might make sense till the fuel prices etc cause the second hand market prices fall to an appropriate level.