RobEvo5

iTrader: (9)

Not a specific car, but probably fairly topical for this section and might just helps some other as well as me.

So.,! Despite putting the idea down under a previous thread. I am now starting to give the idea of a company car V's allowance serious consideration now.

A. could do with freeing up some capital tied in my cars.
B. It might just stop me chopping and changing and loosing a fortune .
C. Still end up with a nice brand new car that I won't have to worry about.

So question for all those accounts guys out there is how much is it likely to cost me.!

My car allowance is currently £5100 per annum, but if I do business miles I get paid 40p per mile in addition to this allowance.

I do very little business miles. circa 2K per annum max.

I am in the 40% tax bracket, and assume a car something like a new A4 Advant 200bhp variety.

Also assume private miles only say 7-10K per annum, but would likely be more if I took a company car and fuel paid for.

My loss in take home earning in loosing the allowance is going to be about £250 per month, but how much in addition to this would I be paying in car and fuel tax per month. ?

I appreciate running a company car is worry free motoring, but do like my motors.

Once I know how much I would be loosing I can way up the thought process between say getting a new medium range Audi fully expensed with no worries or care in terms of fuel, servicing and maintenance, V's the cost and worry of running say a top of the range 3 year old motor.

Thanks in advance.!

P20SPD

iTrader: (1)

Diesel or Petrol
List price including extras

Above is needed before any comparison can be made.

RobEvo5

iTrader: (9)

Petrol Audi A4 Advant 2.0 TFSI 200PS 6 Speed. co2 186 - list price £24,335. say 25K with a couple of optional extras.

Thx
Rob

P20SPD

iTrader: (1)

06/07 tax years (based on a full tax year of use)
Car benefit = 24% x £25000 = £6000 x 40% tax = £2400
Fuel beneift = 24% x £14400 = £3456 x 40% tax = £1382.40
Total tax cost of having the car = £3782.40 or £315.20 per month.

RobEvo5

iTrader: (9)

Ouch! Allot more than I was thinking, So effectively total loss of useable earnings = £250 from loss of allowance + £315 for tax on the car and fuel.

So £565 loss in take home a month.? thanks for the figures but that has just put the idea of a company car to bed.

P20SPD

iTrader: (1)

Yep, but think about it, including depreciation etc, could you run a car of that level for that amount per year/month. Untill you calculate that, you cant decide fully.

Steven

RobEvo5

iTrader: (9)

Agreed -True cost of a car at that level is probably about the same, but would like to think during the period of ownership I would be paying off some of the captial of the car if I purchased the car myself and tried to run it.

Per month.
Petrol £100
road Tax £20
Insurance £60 max
Breakdown £10
Tyres pro-rata £ 30
Service £60
unknown £30

total £ 310 so this would still leave a fair bit to purchase a car, or at the very least pay some towards the car. So after say 4 years of ownership I would have paid £11.5K towards the cost of the car.

tough one really. If I were to purchase the A4 myself, and took a loan for all of it, It would be costing me £625 a month just to purchase the car alone.

So looking at it from a different direction its a cheap way of owning a 25K car today without taking out a massive loan. But then the car is never mine.!

Still worth due consideration. I know if I go and look at and test drive a new Audi I am likely to get hooked on the idea of it, and the whole new car experience. But then also know after 6 months this soon wears off.

If I wern't such a petrol head the decision would be easy. I am probably best sticking as I am and keep messing about with 5-15K cars where someone else has taken the brunt on the depreciation.

PaulC72

Comcar Company car tax guides

HTH