172 vs company car

[howie p]

would it be worth keeping my 2001 172 mk2 on 38k miles and receive £3k a year plus mileage allowance or take a company car+petrol and get taxed?

24k miles a year im assuming.

i would value my car at just over £3k and even if i put 100k miles on it it'll be worth £2k. £1k loss in 3 years (exc upkeep/serv)

or sell and take a company car but the be taxed?

what would you do?

 

[andy_172cup]

company car mate, i think its just a better option. I have had a look into this in previous jobs and depending on the tax the company car seems the way to go for me that is, Could always build your self a nice clio track toy if you were into that.

Anyways it seems that its a win win situation,

Good work.

 

[the_prophet]

my 172's my car allowance car. i get £300 a month as allowance (£3600) a year and ive done 32k in 22 months. not a massive amount but its enough to put the car in the high mileage bracket (75k)

i chose to use it for this as most of my driving is a roads and b roads and i wanted something that i'd enjoy driving for work instead of a focus / mondeo etc

also chose the car allowance over company car due to being better over the course of a year and the fact the car allowance bumps up your salary for when i was getting a mortgage.

 

[Jamie]

Depends on what Co Car you'll get. Depreciation isn't an issue from what you've said but that's a non cash flow anyway, unless you sell it. First lets see how much you'll be taxed first, would need to know:

The co2 emissions of the co' car
The list price new of the car
You'll get private and work fuel? To or just business. If private as well how many personal miles do you do?

Then for your personal car...

You get £3k car allowance.
How much will you get per mile for business mileage. I think it's 25p? So I'd like to know how many business miles you will be covering.
Estimated running costs to.

Then we can do a cash comparison if you like. This is what we do when looking at when converting someone.

It's important this is a CASH comparison and how much each will cost and does not measure utility.

 

[EllD90]

Sell the 172 and use that £3K to lease a new RS 200

You might have to add a small amount from your own pocket.

 

[Ad]

I think at 24k it is worth doing a company car couple of reasons why:

- if you have an accident/theft or your own car breaksdown you would need to provide yourself with a car
- No excess to pay if an insurance claim happens
- No maintenance to worry about.
- Do your comany have an age limit on cars, my last 2 had a limit of 5 years.

I have a virtually brand new Volvo S40 as my company car delivered early september and I have covered 12.5k in it. Costs to date I would have paid if I was on car allowance:

Tax £150
Service £350 (main dealer)
Pothole damage £125 tyre & £40 tracking
Insurance based on 30k guessing circa £300
If the car was on HP payments of circa £1600.

Will need a set of front tyres so thats another £250 in the next 4k.

I think it works for me and I would recieve £6k allowance before tax.

 

[Sargara]

Take the company car and keep the 172 as a weekend driver? Best of both worlds surely and your monthly out goings wont be much different.

 

[Chris V6 255]

Ive just been offered a new job inc car or allowance.

My head says Company car but my heart says f**k it & get another vee

 

[Mike_182]

Bye-bye 172. It's a nice car, but not worth the cost of keeping compared to getting a virtually free new car.

My new Golf with all the bells and whistles is going to cost me £60 a month. If any man on here can find me a car I can buy, maintain, insure and tax for that, I'll eat a sheet of A4 paper. On camera. And post it up on here.

 

[Mike_182]

Ive just been offered a new job inc car or allowance.

My head says Company car but my heart says f**k it & get another vee

Car allowance usually restricts you to a car less than 3 years old, and almost certainly won't stretch to a car that's 5 years old now. Plus, every time you do any travelling for work, you'll be paying 22p per mile on fuel alone, whilst claiming 11p back. Losing 11p every mile, before taking into account rediculously expensive tyres and services.

More fool you if you do!

 

[H182]

Depends on the situation. My dads got to change his car as he is on car allowance and its over 3 years old.. He can part ex his current car for about 12k and get a new one he's looking at for around 24k. With 6k allowance a year he can recover the 12k outlay in the first two years, and use the other 6k from year 3 to pay for servicing etc.

At the end of 3 years he has a car worth x amount where as a company car you have nothing.

 

[Mike_182]

Depends on the situation. My dads got to change his car as he is on car allowance and its over 3 years old.. He can part ex his current car for about 12k and get a new one he's looking at for around 24k. With 6k allowance a year he can recover the 12k outlay in the first two years, and use the other 6k from year 3 to pay for servicing etc.

At the end of 3 years he has a car worth x amount where as a company car you have nothing.

But what about that 12k that he has at the beginning? If he just got a company car, he'd have to spend nearly £350 a month on a company car to use that over 3 years. Which is two very, very highly specced 2.7TDI Audi A6's. At the end of my 3 years, I'll have had a Golf maintained and insured for me for £2160 Which is a fuckload less than I'd lose buying ANYTHING. Before I maintained it.

If you're a t**t about it, then yes, company cars can be expensive. If you're sensible, you can have a lot of motor for free.

 

[Riley!]

company car hands down

172 bassed on 24k a year. 300 miles to a tank at £50 a time comes to £4k alone . . . so your already -£1k on what they pay you plus what any other maintaining costs there are. You'd be out of pocket big time

 

[Mike_182]

But what about that 12k that he has at the beginning? If he just got a company car, he'd have to spend nearly £350 a month on a company car to use that over 3 years. Which is two very, very highly specced 2.7TDI Audi A6's. At the end of my 3 years, I'll have had a Golf maintained and insured for me for £2160 Which is a f**kload less than I'd lose buying ANYTHING. Before I maintained it.

If you're a tw*t about it, then yes, company cars can be expensive. If you're sensible, you can have a lot of motor for free.

In fact, to be blunt, for £12k you're only a little bit shy of a Maserati GT 4.7 S as a company car!

Rubbish argument and he needs his head examining IMO. The ONLY reason now to get allowance over car is if you've got a s**t list, or want something sporty and only have one car. Even then it's not stupid... £450 a month for a maintained and insured Mazza? Yes please.

 

[Fletcher]

I'd get the company car.

 

[Lou]

I was in same situation in October!
Well kind of..was either keep the 182 or sell it for a diesel!
I get £3.5k built into my salary plus petrol expenses on top of that.

Glad I didn't sell it! I would of missed the fun of the 182!!

 

[H182]

But what about that 12k that he has at the beginning? If he just got a company car, he'd have to spend nearly £350 a month on a company car to use that over 3 years. Which is two very, very highly specced 2.7TDI Audi A6's. At the end of my 3 years, I'll have had a Golf maintained and insured for me for £2160 Which is a f**kload less than I'd lose buying ANYTHING. Before I maintained it.

If you're a tw*t about it, then yes, company cars can be expensive. If you're sensible, you can have a lot of motor for free.

I see your point, and I'd probably have a compnay car. But he already had a car which he would have to sell, not like he put £12k towards buying one new. His argument is if he lost his job he still has a car, doesn't have to go and find one when he's going to be stuck for money.

 

[Mike_182]

I see your point, and I'd probably have a compnay car. But he already had a car which he would have to sell, not like he put £12k towards buying one new. His argument is if he lost his job he still has a car, doesn't have to go and find one when he's going to be stuck for money.

Yeah, true - but if he loses his job he still has a very expensive car that he's got to shift very quickly for something cheap to run/insure. If I got £12k from selling a car, keep £2k of it to buy a decent hack should the job and car go!

 

[H182]

Good point, I'll have a word.

 

[Revo Kev]

I bought my PH1 end of November to get out of the company car scheme. I was in an A3 Sportsback 1.8T Sline (running around 235bhp 280ftlb but still boring). Now I'm back in my own car I see just under £450 after tax more a month.

Depends on your options though I have the choice of a company car (of my choice within the VAG range) or money in my pay packet to the value of my last car. As I'm not really using the company car for anything but my own use and commuting (and I've access to other cars for work use; dealer visits, training, trackdays, etc) I was paying nearly £5k a year to have a new car... my PH1 including purchasing, running and modding it for a year won't cost that.

For me a company car was just silly, but then when I first got one I didn't have the choice. It was a car ontop of my existing package or nothing. Now I'm out of it I'm back in a car I enjoy and have a load more money a month to spend on doing stuff with my family. Just a shame I put all my 'car savings' into the house at the beginning of last summer as that was earmarked for my next car. The Ph1 is great though... feel like I'm 20 again!

 

[jaysjetski]

company car any day, mite get a boring car but its alot less cost than running your own.....

mile per year on the clock,
new tyres,
servicing,
tax,
mot,
accident damages(your insuance no claims if you hit someone)
hire car if problems,

i had a new astra 1.7ctdi elite(cost £60 extra on tax per month)
had to pay for my private milage(about £50 per month)

total for company car £110 per month.

now had to give back company car and i bought a 172.

£2500 out of my savings
now monthly payments are:
insurance £30,
fuel £140,
servicing approx £50(tax,mot,tyres,servicing-over a year approx £600)

so £220 per month.

i know what i would have if i had the choice.......

 

[Mike_182]

I bought my PH1 end of November to get out of the company car scheme. I was in an A3 Sportsback 1.8T Sline

So your predicament was because you picked a stupid car (~£130 a month) and because you've 'forgotten' the cost of insurance in that (business use, legal requirement if you're claiming allowance), maintenance and the fact that if you're intelligent you can make money on the 11p/mile, whereas your Clio now costs you 15p a mile in fuel alone.

Congratulations! The most lousy justification I've ever come across.