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Wow, Zed as company car would be expensive!!!


twobears

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Sorry, my name is not really a mystery, well not to me at least. I know that the word 'bear' has connotations in the gay world but in this case it is just the name of my garment personalisation company. I have a rescue rabbit called Bear and I suppose my husband looks a bit bear- like (not particularly hairy but does have a goatee) and, although in touch with his feminine side, isn't gay.

 

Does that answer your question? :)

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Mine was a kinda company car...... Work pays me a car allowance each month.... I get any car I like :teeth:

 

+1 most of the people I work with take the cash and run what they like, but it's never as cheap as having a company car unless you run a cheap banger. Love driving the Z every day so well worth the cost.

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Taking the cash has never been an option because he does 40,000 miles a year. With a company car all fuel is paid for. He's getting an Evoque soon because we need to be able to tow.

 

Unless the company is very strange, all business fuel is always paid for regardless of whether its a company car or a private car.

 

Most companies ive worked for give you the choice of either X amount per month cash, or a company car lease upto the same value per month. Some people take the cash then either just use their current car, or get their own personal lease car (as sometimes you can get a better deal) - or even use the allowance to fund buying their own new car on HP. Others, just let the company supply the car as then they also pay for all your insurance, road tax, servicing, tyres etc and you dont get hit by the depreciation of the car.

 

Where fuel allowance is concerned, if you take the cash option, you get 45p a mile for first 10k miles, then it drops to (for my old company car which was a 1.5 diesel), 13p a mile. However, if you go for the company car option, you only get 13p a mile from the off.

 

Which option you pick depends upon your personal circumstances - ive done both in the past. One company was paying me £600 a month to run a shed which only cost me £800 to buy in the first place. :lol:

 

However, in general its usually best to take the company car option rather than the cash equivalent, as benefits usually outweigh the cost of depreciation, insurance and maintenance of running your own car - especially over 40k miles!

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rabbitstew, you're probably right on the fuel question. I know OH said it was something to do with the mileage he did so I sort of assumed it was to do with the fuel costs :blush: The last car he handed back after 3 years had well over 120k on the clock so I guess the depreciation and wear and tear would make it uneconomic to use your own car in these circumstances, as you say. I think he also likes the fact that he doesn't have to bother about servicing and other hassles with the company car.

 

He works for an automotive data company and that's why I was looking up the tax costs in the first place. I'm self-employed and have only ever had hire cars for odd weeks when I was employed so I don't really know much about the subject but was shocked at the tax he'd have to pay if he used my Zed to go to work in :)

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I'm self-employed and have only ever had hire cars for odd weeks when I was employed so I don't really know much about the subject but was shocked at the tax he'd have to pay if he used my Zed to go to work in :)

 

Yep, a company car is classed as a "benefit", so you have to pay tax on it and its relating to engine size. So, with my old 1.5 diesel I was paying around £40 a month I think extra in tax, which when I compared it to the £260 a month my previous private work car was costing me in tax, insurance, servicing and depreciation, it was a no brainer. Of course, the amount you pay in tax increases if its a bigger engine. But, amazingly I was supprised that the tax man actually pays you more mpg allowance if you have bigger engines. Sort of seems to contradict things a bit.

 

Loads of stuff on this on HMRC website - I spent ages looking into it all a few weeks back for my missus.

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Thanks rabbitstew. Just asked OH how he'd worked out the best option and, apparently, he's used a 'Cash for Car' calculator on one of the contract hire companies' websites. Glad I don't have to do it as I'm a total airhead when it comes to figures :blush::blush::blush:

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Thanks rabbitstew. Just asked OH how he'd worked out the best option and, apparently, he's used a 'Cash for Car' calculator on one of the contract hire companies' websites. Glad I don't have to do it as I'm a total airhead when it comes to figures :blush::blush::blush:

 

Sounds like an easier option than what I did! I designed a spreadsheet which worked out everything, incl overall cost per mile.

 

Sometimes it does workout cheaper to take the cash. My ex was getting £650 a month car allowance, and we got her a brand new sporty Renault Clio Diesel for a lot less than that on 0% finance. We worked out that over X number of years basically her cash allowance would have paid for the car, servicing etc, and we`d end up with a free (albiet high mileage) car worth around 7 grand at the end of it.

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