Cash or car

Thunderbird_2

Ok.. If I were you, I would pay £350 ( the monthly allowance) and the usual £130 towards the loan. This way, you will save on the interest you pay over the life of the balance, which effectively make the £350 worth even more, if you see what I mean.

you said your car is worth £700-£800. If you keep the car and get the allowance, after two months, you will be in a position as if you have sold your car and paid the money into the loan, but you will still have the car and the allowance will still be paid every month paid into your account , which I will urge you to have the will to pay it all into the loan. After a year, you will have paid your loan, hopefully, and still got your lovely Tigra and £480 to play with every month( or even better, save it to buy a house after another year, if you haven't done so, or to buy a newer car later or whatever ( you get the picture)

If you get a company car, you will have sold the car and paid £800 into the loan. You will have to pay a tax on the company car, £45, which is in effect a pay cut. After a year, you will still have the loan and still paying £130 towards it. You will have paid £540 tax on the car ( which is from your take home money) and no £350 to play with.

Now, the above is based on the current given data and assuming your car won't break down. This might happen and might not (the break down). If it breaks down, I think you can stop overpaying your loan for a month or two to free the £350 to fix the car with and later back to over pay the loan.

All in all, you are paid £350 a month to keep your car (sort of)

Good luck in whatever you choose to do.