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Thread: Company car time, possible allowance

  1. #1

    Company car time, possible allowance

    Howdy, for the first time in 20 years it looks like the CC is going in place of an allowance .

    Allowance is £600 (before tax) and I currently pay an additional £300 p/m in CC tax, so if I'm correct i'll be £900 P/M better off. Minus the 40% tax I get that to £540 .

    Mileage paid is 45p per mile on the first 10,000 and 25p on anything after that. I do around 15,000 business miles a year and around 20,000 in total at a rough guess. I've calculated at 35mpg and at current petrol prices and it should make me £3k ish per year.

    So, I need a car that'll do 20,000 P/A , needs to be fun , be capable of getting decent MPG when driven steady. I don't need the stress of running a used car.

    A Golf Gti on contract hire with service and tyres comes on just over £500 per month. In theory I should then be another £3k better off than I am currently. Leaving that 3k to pay insurance , tax etc .

    Struggling to find another car for the price that'll be fun still managed decent MPG and be decent enough over distance. I also looked at the Fiesta ST. If anyone does this allowance already and can let me know how it works in their favour and or suggestions on cars, that are going to be around £500 per month or less with 20,000 miles that would be great.
    Ermmmmm

  2. #2
    Regular stevem's Avatar
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    Something that will tow.
    Simon no longer owes me anything, Dave does though.
    Floyd probably owes me at least twenty with the interest rolling up...

  3. #3
    Anything that will tow will be big, therefore expensive. You can get a to bar on the golf gti but I'm sure if I ever HAD to tow, Stace wouldn't mind having a Golf Gti for a few days.
    Ermmmmm

  4. #4
    Regular simonsaunders's Avatar
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    First thing that I would look at is the company policy... how old a car can you have? Ours states a car under 4 years old (a box ticked by the family wagon, not my old BM). Some go to 6 or 7 years old.

    Some might choose a 3 year old car, HP to full ownership over 3 years and then you own the thing at the end. Sell it and do better out of the deal than if you just slung a 3 year old car back at the lease firm.

    I think your mileage allowances are at the HMRC maximums, so you donít have to **** about like some of us do getting tax rebates to effectively restore that full allowance.

    That contract price on the GTi sounds a bit high. My Leon was £290 pcm on a PCP deal, had to replace two tyres (Nick at MoT used specials ) and service it once. That was Ďjustí 15,000 miles a year though.

    So shop around all the lease companies, use CarWow and main dealers to get some PCP deals, see what comes out cheapest.

    If buying a sporty car, just make sure it is bearable over your miles. Adjustable suspension helps, as does avoiding those that remain really stiff regardless. Read the reviews and test drive.

    My personal recommendation when looking at VAG is drive everything at, below and over your price point. My Cupra 290 was the same money as a GTI. It definitely wasnít as posh as the GTi but had way more kit and an extra 100bhp. You might find something that you really click with from somewhere else in the group or that the R is only £30 more a month than the GTi or whatever.

    Oh, and is the mk7.5 Golf right at the end of its model life? No one wants to get their flash new car the month before the new one is released...
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  5. #5
    Regular simonsaunders's Avatar
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    And yes, your pay packet will swell by £900/month this side of the tax man.

    Having won a company car allowance when my employer was bought, you do quite quickly forget about the boost and just see what that car costs you per month...

    Quick questions on the costs side...

    1) Do you presently pay for fuel on your personal miles? I know company cars are sometimes generous there... What is a typical tank of fuel these days? £70 / 50 litres / 300 miles... 23p per mile fuel cost. 5,000 personal miles as reported in post #1 - £1,150 of fuel. Not a disaster but worth remembering that you might now cop £100/month personal fuel bills.

    2) Getting to work. If your employer lists an office as your permanent place of work, you canít claim for travelling there in what is now effectively a personal car. Thatís on you. With a company car, that is probably covered... My employer lists my home as my place of work, which means that the moment that I walk out of the door, they are paying. A nice system, but the tax man may get stroppy if you act like a home worker, but commute to a single office 200 times a year.
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  6. #6
    Sadly regarding time, I'm going to be out of it before they start taking orders on the 2020 Gti. I don't need to test drive one, in fact I've never test drove anything I've had in the last 20 years. 10 minutes isn't going to show me that it makes my sciatica bad in 45 minutes . I had the Mk5 Gti and did over 30,000 per year in it, managed fine, I don't expect the current one to be much different.

    You are right with a 3 year old car and then owning it but at the detriment of saving money, entering the mine field of used cars and the pain of finding the right one is a stress I just don't really want in my life.

    I also need to speak to the boss as committing to either a used car or a PCP for three years is not something I want to have hanging over me should anything happen to my job or more likely the company .
    Ermmmmm

  7. #7
    Quote Originally Posted by simonsaunders View Post
    And yes, your pay packet will swell by £900/month this side of the tax man.

    Having won a company car allowance when my employer was bought, you do quite quickly forget about the boost and just see what that car costs you per month...

    Quick questions on the costs side...

    1) Do you presently pay for fuel on your personal miles? I know company cars are sometimes generous there... What is a typical tank of fuel these days? £70 / 50 litres / 300 miles... 23p per mile fuel cost. 5,000 personal miles as reported in post #1 - £1,150 of fuel. Not a disaster but worth remembering that you might now cop £100/month personal fuel bills.

    2) Getting to work. If your employer lists an office as your permanent place of work, you can’t claim for travelling there in what is now effectively a personal car. That’s on you. With a company car, that is probably covered... My employer lists my home as my place of work, which means that the moment that I walk out of the door, they are paying. A nice system, but the tax man may get stroppy if you act like a home worker, but commute to a single office 200 times a year.

    I pay my personal mileage now, and that is without a doubt less than I actually do. On average I pay the company about £50 per month to cover personal mileage.

    My official office is at home, I will commute to the actual office once a week (120 miles return)

    I think the policy also states no older than 3-4 years old for a used car. That annoys me as I'd be happy to spend £1500 on a £1500 car getting it as bullet proof as possible and running that hahaha
    Last edited by Weeman; 31-07-2019 at 12:59 PM.
    Ermmmmm

  8. #8
    Take a 1 year lease on something, then get your 2020 GTi when released.

    Plenty of cars on short deals.

  9. #9
    Regular simonsaunders's Avatar
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    If you do PCP over 3 years, on a small-ish deposit, you’re still fairly square after 1 year. Could bail out of it for no or negligible cost.

    You’ll be car-less and job-less if it comes to that, but at least you won’t be spanked for a load of payments you don’t need or can’t afford. No idea how a lease would work in similar circumstances.

    Sounds like you’ll have to find £50 a month for fuel to cover the personal stuff - no hardship - and there isn’t suddenly a commute to cop for.

    Talk to a dealer nicely and they’ll give you a car for the weekend. Proper test drive, not this 10 minute BS.
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    Quote Originally Posted by simonsaunders View Post
    Youíll be car-less
    He's got no hair, the Caterham will be fine for travelling too and from job interviews in.

  11. #11
    Skoda VRS always surprise me with how inexpensive they are to lease.
    I'm arresting you for murdering my car you dyke digging tosspot

  12. #12
    Regular simonsaunders's Avatar
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    Quote Originally Posted by Gary Kinghorn View Post
    Skoda VRS always surprise me with how inexpensive they are to lease.
    I think they do one with a diff and a bit more whizz now too. I think thatís a pure Ďheadí purchase though. GTi has a little heart in it too.

    Although, northern, shaved head, angry face, Dave has to Type R, surely?
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  13. #13
    Regular stevem's Avatar
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    Quote Originally Posted by simonsaunders View Post
    I think they do one with a diff and a bit more whizz now too. I think thatís a pure Ďheadí purchase though. GTi has a little heart in it too.

    Although, northern, shaved head, angry face, Dave has to Type R, surely?
    Missing the tat sleeves
    Simon no longer owes me anything, Dave does though.
    Floyd probably owes me at least twenty with the interest rolling up...

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