Company Car vs Car Allowance

MutzNutz

Hi all. Need to post a poser for my 1st post. Hope someone can help me.

I currently have a Merc C Class Automatic Coupe that is petrol for my company car. I have asked for a diesel but have been told I need to run this for at least another year. I get my mileage back when on company business but obviously, not personal and its expensive as I have to drive approx 60 miles per day when not out on customer visits.
There is an option to "opt out" and I will get £6k per year before tax. I have worked out that with the money I will save not paying tax (£110 per month) on the car will almost negate the tax on the £6k (£500 per month) so there should be approx £350 to £400 PM to buy a car with the rest going to tax, insurance etc so I can go ahead a get a diesel.

Does anyone have any input into.....

A:- should I opt out or not
B:- what is probably the best option I need to be looking at
C:- anything else I may not have covered above

Thanks in advance and I hope someone out there can help me.

I look forward to some replies

vansboy

Hi Mutz

Welcome to MSE!

If you go to the car makers websites, most will have some sort of online calculator, to show the benefits of taking the £$£$ & running your own car.

They'll alos have the chance to join their email list & get updates for offers they have. A good one is Fords https://www.talkbackclub.co.uk get loooooong test drives too!!

PCP's - Personal Contract Plans are pretty much the way the industry is pushing car buyers, anyway.

& post on http://www.honestjohn.co.uk clik The Backroom - Discussion & you'll find plenty friendly help there, too!

VB

MutzNutz

Cheers VB. Will look at those

MonkeySaving?

Hi, quick question, do you get a fuel card (for business & personal) if you choose car allowance? I've been through exactly the same scenario as you and car allowance for me worked out massively cheaper. Feel free to PM me for more details

MutzNutz

I dont have a card. I have to claim back each month and I get 15p per mile from the company at present and that stays that way as I will be getting a car allowance. After that, I can also claim an extra 25p back on the taxman taking me to 40p per mile up to 10'000 miles. After 10'000miles, its only 10p over the 15p (25p per mile) I already get that I can claim back on tax.

When you say massivley cheaper, can you explain please? Do you mean the running costs of your personal miles as that is all I am after covering.

I am not fussed about the "hassle" side of things (sorting everything out myself). Once I have a correct insurance sorted (temp car etc), its just running costs. Tyres and servicing every for 1000 miles plus tax.

I also average approx 20 to 25'000 miles per year, I am concious that an older car may not be suitable. I have kids but also a family 4 door saloon so the company car is not really guided by the family size.

Cumbrian_Male

Have a look at This site which allows you to do comparisons with various cars.

MarkyMarkD

MutzNutz wrote: »

After that, I can also claim an extra 25p back on the taxman taking me to 40p per mile up to 10'000 miles. After 10'000miles, its only 10p over the 15p (25p per mile) I already get that I can claim back on tax.

You don't get 25p or 10p. You get tax relief on 25p or 10p - so around 5p/2p per mile if you are on standard rate tax, or 10p/4p per mile if you are on higher rate tax. Significantly less than your wording implies!