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Original poster

company car allowance

10 replies

Kilconnellbay · 22/03/2021 09:56

hi all,

i have company car allowance of £450pcm with my new company. My company car with my current job is going back so i need to figure out what im going to do with the new allowance with new company.

I was thinking i would either get a loan for 20-23k and buy a nearly new car outright and then if anything awful was to happen further down the line i could sell the car and pay back the loan.

i was also thinking of doing to personal hire/lease and getting one for around 450pcm .
My worry is with this one is that what if i went over the set mileage, what if i curbed the wheel and then get fined loads at the end etc? at least if i got a loan and bought a car outright it would be mine and then id be the only one id have to answer too.

A few catches along the way..
the company specifies that the car must be younger than 5 years old therefore it's in my best interest to get a car as new as i can.
my previous company car was a plug in hybrid passat and i am now a complete convert to hybrids..epesicially with covid and not travelling far .. i cannot remember the last time i had to put fuel in.
i am guessing i will be doing around 15000 miles per year as a combination of personal and business miles .

what should i do?

OP posts:
JellyBabiesFan · 22/03/2021 13:22

If it were me I would lease something for between £300 and £350 and keep the difference saved to settle any extra costs teh charge at the end.

If going down the purchase route why spend £20-£23k? There are plenty of nice two year old cars you can pick up for £15k. Are they really going to insist you replace a car as soon as it becomes 5 years old?

aleto · 23/03/2021 18:43

Is the £450 what you'll receive after tax? As far as I know car allowances are taxable at either 20 or 40% depending whether you are a basic or higher rate tax payer. If it's before tax then you need to take this into account when choosing a car.

Vetyveriohohoh · 23/03/2021 18:49

Have you accounted for tax?

KristinaDer · 15/09/2021 14:30

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Nanananani · 15/09/2021 14:34

Before or after tax?

KristinaDer · 15/09/2021 14:37

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fromdownwest · 15/09/2021 15:10

I struggle to see how a company can request that you buy a car of a certain age, unless they are providing the car themselves!

Hoppinggreen · 15/09/2021 15:12

They ate giving her the car allowance and so yes they can specify some things about the car, for example they can insist it’s a 4 door

ShrimpBarbarian · 15/09/2021 15:12

@fromdownwest

I struggle to see how a company can request that you buy a car of a certain age, unless they are providing the car themselves!
The company is paying the OP for the car - so can easily have terms
Nanananani · 15/09/2021 15:19

Sorry! It’s an old thread that i inadvertently brought back to life after a spam post

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