Car Allowance (I'm 22!)

Cardozo

I've just been offered a job. I'm 22 and still at uni 1 day p/w for next 4 months, I will be paid £19,500 + £4644 (car allowance) or a company car.

Company Car choices are, VW Polo 1.2TDI Match (102co2) or for a contribution of £72p/m VW Golf 1.6TDI Blue Motion (99co2). Both 5dr h/b's. 4 year tie in.

The car I've been looking at buying is a VW Polo 1.4Match (2010) valued at £8,750 (33,000miles) on a PCP basis of £224p/m (no deposit) or 6% interest on a Hire Purchase Basis £260. Insurance is £900. Road Tax £120.

Is this a better choice? or should I look for a cheaper car? I test drove it today and liked it but is a company car a better option. Or PCP or HP?

Sorry, any suggestions from experience will do, I don't expect you to calc everything for me! I think I'd look to upgrade my car in 3 to 4 years.

closed

if you dont take the company car, you keep the debt if you lose the job.

Sgt_Pepper_2

Your best bet is the company polo.

No additional cost to you, insurance and service costs paid for you. Plus the chance to build up no claims as a company car driver.

Cardozo

The job is with a construction contractor. They've just won a 5 year construction project and my role is as an Assistant Quantity Surveyor on that. It should be relatively safe but I take your point and it is a consideration!

closed

I'd take the cheap company car, it takes all the worry and costs away, and leaves you to use all your earnings to save up for the house, the journey time in a 1.6 is much the same as in a 1.2.

If someone needs to cost cut, or your face doesn't fit, your job could go in a moments notice, especially in the first couple of years. There's always someone else around to take up the slack

JQ.

Company car every time. What you're proposing makes no sense, after tax you'll only get £3,200 in your pay packet by taking the allowance.

Cardozo

closed wrote: »

I'd take the cheap company car, it takes all the worry and costs away, and leaves you to use all your earnings to save up for the house, the journey time in a 1.6 is much the same as in a 1.2.

If someone needs to cost cut, or your face doesn't fit, your job could go in a moments notice, especially in the first couple of years.

You've got a good point. It does take away a lot of the hassle on my part and I don't think £4644 is really high enough to make money out of it. Especially at my age with insurance.

Sgt_Pepper_2

Does your £900 insurance quote cover you for business?

Loanranger

The max number of recommended hours of work while on a degree course is 15 hours per week.
Will you exceed that number?
Will you be jeopardising your degree by taking the job before your final semester has even started? Can you negotiate time off for revision, essays, exams if you need it?

marlot

My advice would be to take the company car, especially at your age - perfect for insurance.

You need to be aware that there will be a tax charge for the car though. http://www.hmrc.gov.uk/cars/index.htm

Cardozo

The £900 quote covers business use by the policy holder (me) yes.

The Job shouldn’t affect my studies, day release at university is common on my course. I have one exam to sit and my dissertation to write (and it’s been agreed this can be handed in as and when).

I’m struggling to understand my tax position, can someone help with that? I expect to do 10,000 miles with 7000 being business miles.

I have a choice of:
VW Polo Match 1.2TDI (102co2)
Ford Fiesta Edge Econectic 1.6TDCi (87co2)


On a salary of £19,500, although I’m not sure about the fiesta from personal choice I expect it to be much better due to emissions.


I'm offered 16.5p per business mile from the company also.