My current car has just died, will probably get about £1k for it.
I currently take the cash, but have the option to sign my life away for 4 years and have a spanking new company car. I drive to work about 1-2 a week, otherwise I cycle, though on weekends I usually do something that involves a few 100 miles.

I could….
Get a secondhand car – but I live in London, insurance is high and chance of damage is high
Rent when I need one…a bout £100 per weekend or so
Lease…I know nothing about this
Get a company car – BMW/Merc/Audi/VW – actual cost to me me ranging between £300 – £500 a month

I take the cash, works for me. If its going to cost you £300-£500 thats the option I’d take.

chance of damage is high

I’d have a look at your companies policy on damage to cars if the risk is high

£500 a month for a car that barely gets used??

Just buy a 2nd hand car for £1k

You could get a smaller company car. My Golf costs under £90 per month at 40% rates (less than your weekend hire rate). I then pay private fuel out of my own pocket.

The car is VW Golf 1.6Tdi Bluemotion in Match trim. A great spec of car and it falls in to the 13% tax bracket.

but the smaller company car would also probably wipe out the cash allowance – so total cost will be around £300/month

OP – do you drive much in the congestion charge zone? If so a new car may make financial sence (as you can get some which avoid the cost). Otherwise though, just use a cheap car. Should be able to get something that meets your needs for £1000, then just don’t worry if it gets bumped into whilst parked.

I just did some sums and it was costing me about £180 a month to keep my last car on the road (Insurance/Tax/MOT/Breakdown/Servicing)

jp-t853 the golf is an option, just so you know the Golf Bluemotion Match won’t be in the 13% bracket next year 🙁 as its 109g/km

The tax does increase over the next two years but it wasn’t a great deal. I think about £200 in total annual cost off the top of my head.

There is a full Bluemotion model under 100g/km but the spec is rubbish.

I hear where you are coming from with a £1000 car, but in reality thats going to cost me £200 a month alone to keep on the road, let alone any additional *issues* a cheapo car may have.

I think jp may have the right idea with a cheaper model in the £300 a month category. VW Bluemotion or the 1 series that comes out next year (CO2 @ 99gkm)

i think there’s a bunch of small volvos that fit into the 100g/km bracket – c30, s40, v50.

eta : does it really cost you £200/month to keep a car on the road? seems like a lot. a cheap car like that should work around £100 per month :

insurance £300
tax £200
mot £50
Service £100
tyres £100 (based on your milage)
leaves £450 for other repairs.

Trying to make up my mind on the same connundrum….

… and keep going round in circles 😳

Last week – keep car and car allowance

This week – sell car, ditch allowance and get shiny new company car….

When you say £300-500 a month, presumably that = BIK tax + loss of allowance?

Get a disposable motor. Last time I was “between jobs” I furnished myself with £300’s worth of Cavalier. Plenty of space in the back for a muddy bike, and if someone ‘damages’ it, who cares.

I hear where you are coming from with a £1000 car, but in reality thats going to cost me £200 a month alone to keep on the road, let alone any additional *issues* a cheapo car may have.

Just wondering how you arrive at £200 per month to keep on the road? I havent tried to work it out btw.

something reliable & small engined cant be that much surely? Honda/Nissan/Toyota? About £120 tax per year and servicing/mot not alot

Get a disposable motor

We are bound by a few rules when buying cars for work
Less than 4 years old
Less than 100K miles
no rag tops
4 doors

etc

rkk01 – yes you are right, BIK tax, loss of allowance (+ plus any I don’t spend I get back, taxed)

Incidentally,

All other things aside, company cars are hassle-free motoring. New tyres at over £100 a corner? Free. Engine falls out? No problem. You do pay a premium in tax but ultimately, if you need a car, you can’t beat it IMHO.

… That, however, is your first question. You live in London. Do you need a car? These 100 mile weekend trips – is the train a viable alternative?

We are bound by a few rules when buying cars for work

Ah, good point – exactly the same for us too. As you were, then. (-:

Cougar – I tried the train this weekend, took me and my bike up to my mothers, in Milton Keynes, had to get picked up her end, picked up by a mate sunday mo for a ride etc etc etc

A right pita tbh

5lab – my insurance is nearer £1000 unfortunately, London + a few dings

I reckon you’re pretty close on your 200 a month to run your own as well…

Tax, insurance, MoT (plus a few bits to get through), servicing, 4 tyres every other year, etc.

Then you have depreciation and the cost of the money you have tied up in the car itself. (which, together, could easily be another 200…)

The loss of allowance + BIK tax looks like a very big hit (and it is on monthly cashflow), but I reckon the overall

FOR / AGAINST is very finely balanced.

Plus – a new, modern company car will be much more efficient and probably save me about £30-40 per month in fuel bills

I reckon you’re pretty close on your 200 a month to run your own as well…

Excluding the cost of the car and fuel [which the co pay for]
I put aside £75/month to run my 2007 2l diesel Toyota – about 12k miles/year

I always have a healthy surplus – enough to buy the odd new frame etc.

Cheers guys, I think it is pretty conclusive that a company car is a better idea for me. Just choosing which now!

jp – big thanks on the heads up on the Golf Match

I remember there’s a ‘car running costs’ calculator on that Internet somewhere. Might be on The AA’s site?

Lexus CT200h hybrid

Costs about £160 per month in tax including fuel

we don’t have any restrictions on car with the allowance. We don’t even need to have a car (and neither of my last 2 bosses have).

Its just as well, as the post-tax car allowance is £160. I think you’d struggle to run a <4 year old car for that