New Job - Car Allowance (from Company Car)

LeahXL

I am starting a new job at the beginning of October.

The company I am with now gave me a company car for the last 8 years and a fuel card so I don't have my own car come the end of the month.

I have been offered £36k/annum + £3k car allowance (this is actually above the package they advertised for as it was meant to be £38k without car allowance so they have essentially given me £39k in total).

I will be commuting roughly 65 miles per day, 5 days a week, with personal mileage too I will be roughly doing 25k per annum.

I was intending to lease a new car, I had done it prior to this role and I absolutely loved it, however, I am trying to work out the following:

Can I only buy/lease a car within the £3000 or can I put money from my own account towards it?

The commute I'm assuming is counted as personal, not business miles (as with most cases, unless you are home based).

What would you consider the best thing really to do?

I really would prefer a better / more comfortable car for doing all the miles and I know I could have afforded it within the £38k offered originally, just trying to consider what is actually the best thing.

Thank you in advance.

sheslookinhot

When I had a car allowance, it was just money added to my salary, to spend as I pleased, just like you normal salary. Try https://www.nationwidevehiclecontracts.co.uk for leasing deals, very good in my opinion. The mileage might make it expensive. Might be better with purchasing an almost new car using your allowance.

My wife leases this car, but less miles p/a
https://www.nationwidevehiclecontracts.co.uk/Infiniti_q30-1-5d-business-executive-79154.htm

rsvtoddy

Don't forget that the £3k car allowance will have tax and NI taken off it so you will only get just over £2k in 'real cash'. Doing 25k miles per annum will make any leased vehicle very expensive and well above the extra cash you receive.

As suggested above go for something nearly new e.g. a year old Hyundai or Kia will have a good amount of manufacturer warranty left and cost a lot less than the same car brand new.

There may also be restrictions on the age/type of car that you can have depending on what your contract states - mine has an age limit and cannot be a 2 seater.

My company car may be stopped soon and I'm considering a Hyundai I30 estate that you can get for about £11k less than 2 years old so would have 3 years warranty left. Might not be the most inspiring but should be low cost and reliable.