Sell car and use company van instead?

Frogs24
Frogs24 Posts: 2
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edited 22 January at 2:20PM in Motoring
Hello! 
Hope you can help me. 
We purchased a car for my husband last September for £14,000.  A high spec, but high mileage 2019 plate VW Passat .  It is a great car, however he is due to start a new job next month where he will have the use of a van (which will be kept at the home address).  He could choose to add personal use to it, and would have to pay the relevant tax on the benefit.  
Trying to work out, would it make most sense to sell the car (we know we will make a loss as cars depreciate) and for him to just utilse the van and add some personal use to it, and put the money we get into high interest savings?  I think the answer is going to be 'yes'.  Because if we keep that car, even though it is good quality, it is going to depreciate over the years that we could possibly be making some use of the money in a savings account or investment.  We have use of another car which works for long family trips. 
Thank you for the advice in advance! 

Comments

  • BoGoF
    BoGoF Posts: 6,778
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    Van benefit for 24/25 is £3960 which equates to extra tax of £66 per month. Will fuel for personal use be provided free?

    Whether or not it makes sense would be based more on just financial implications. What type of van is it. Going from a nice comfy high spec car to a van might sound great for financial reasons but the realty of driving a van on a day to day basis might not be as appealing as you thought. So yeah, financial reasons yeah but needs to be weighed up with the practicalities.

  • born_again
    born_again Posts: 13,652
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    If you have a 2nd car, why would you need to use van for personal use?
    Life in the slow lane
  • Ganga
    Ganga Posts: 4,047
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    I was a white van man ( not always white but you know what i mean ) we always managed without a car and if you have another car any way why not get a price on the VW and see how much you will loose.The other thing to think about is how long will he work for the company that suppplies the van. 
    ITS NOT EASY TO GET EVERYTHING WRONG ,I HAVE TO WORK HARD TO DO IT!
  • maxmycardagain
    maxmycardagain Posts: 5,741
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    edited 22 January at 9:20PM
    As a S/E sole trader vanman I only ever used the van for everything, didnt have a family car.... my accountant nor HMRC ever raised the issue of BIK tax...
    Now we all know how it felt to play in the band on the Titanic...
  • BoGoF
    BoGoF Posts: 6,778
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    As a S/E sole trader vanman I only ever used the van for everything, didnt have a family car.... my accountant nor HMRC ever raised the issue of BIK tax...
    Thats because you were self-employed
     Totally different when you have an employer provided van

  • Herzlos
    Herzlos Posts: 14,618
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    It depends how big the van is and what he's going to use it for. If it's something small like a Vauxhall Combo it's going to be a lot more convenient than something like a Vivaro, when it comes to awkward car parks etc.

    Otherwise, if you've got another car at home, then it'll be much cheaper to use the van as the occasional spare vehicle than having another car. It also means you don't have a 3rd vehicle you'd need to park / shuffle around.
  • Stateofart
    Stateofart Posts: 265
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    It'll probably end up a lot cheaper using the van.
  • Frogs24
    Frogs24 Posts: 2
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    Thank you everyone! Really helpful :-D 
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