JR

Company policy dictates that I exchange my company car (scooby) for money.

How much should I be asking, 5K, 8K?

I do about 17,000 miles p.a , all pleasure, no business miles.

The money will have to cover :- financing a new car, insurance, petrol etc etc.

Last question – I was quoted £950 by direct line to insure an Audi A3 1.8 (I know!). So high because I’ve had two claims in the last three years.

Can anybody suggest a cheaper insurance company.

Thanks in advance.

JR

GaryC

Cheaper insurance - ring mark at OPI 0870 242 0800, mention my name

Cost of Co. car - did this a year ago. for me the value of everything (incl. FX petrol) was about £10k gross.

Hope that helps

Gary Chaplin

Neil Smalley

I get 6K a year car allowance and using Subaru's own PCP scheme it costs me about 320 quid a month after having put down a 6K deposit.

I reckon you'll need a set 4 of tyres a year(maybe less but budget for it anyway) at 450 quid all in. Serving should be about 300 quid, insurance anywhere from 400-$$$$ depending on all the usual. Make sure you get a note from your leasing company stating what a good chap you've been otherwise you'll start off at basic no claims level.
Fuel reckon between 20-26 mpg so 17K miles a year works out to be about 2500 quid a year.

Hope this helps



[This message has been edited by Neil Smalley (edited 16-05-2000).]

APJ

My fleet department reliably informs me that the monthly running cost of a ImpT with aircon is £410 excluding petrol. This covers depreciation, full maintenance and £45 insurance on the company policy. This is based on 15k miles pa. (its only £380 without aircon!)

Andrew

Martin Cook

I get £4800 allowance per annum and my car costs £312.00 per month.I did however put £6K down and my car cost £24,650.00.
Insurance £750 and approx £1,000 running costs excluding fuel. My fuel allowance just covers my running costs.

Martin

Cheeky Jim

Alright Gang?

I have just purchased a MY00, I was a bit short of readies so I only put a grand down deposit through the dealer finance....it is a bit steep at £425 per month, but I get £9k per year car allowance from the company prior to the government taking their slice and it was the quickest way to get motoring!

I also have insurance at £99 per month, but that includes protected no claims.

My initial 2000 miles have been favourable, but I seem to be constantly at the petrol station!!! But that maybe me driving with my foot down too much!!

Hope that helps.

Cheers, Jim

PT

JR,
Right, I spent a while looking into company car vs own car. I know it isn't the same situation as yourself , but some of the issues are the same.

1. When it is your own car you won't get MUGGED by the Inland Revenue for tax on 25% of the cost of the car (gets even worse for scoobie owners in 2002 due to emission levels. If car is approx £22k list, @ 25% tax rate you are currently paying £1,375 in tax, @ 40%, this rises to £2,200.

2. You have to pay road tax @ £155 p.a

3. Loan of 22K @ 9% cost approx £2,900 in interest over 3 years.

4. Residual value of your car will be approx 45% of list = £9,900

5. RAC cover (or similar), £75 pa

6. Servicing over 3 years (36K) on Scoob = £1800 approx

7. Set of Tyres per year = £600

8 Insurance varies, but £700 - £1200 seems normal.

9. Petrol approx £2,200 p.a

10. Dont forget you pay tax at your highest rate on whatever the company pay you (and it may push you into the 40% tax bracket), so gross any figure you come up with for tax (I would do it all at 40%).

Anyway, given all that, I reckon you should ask for the following :

If 25% Tax payer : £5550 after tax (£6940 before tax)

If 40% tax payer : £5550 after tax (£9250 before tax)

In addition, if they currently pay for your petrol, £2,200 after tax, (25% = £2,933 before tax, 40% = £3666)

And don't forget that insurance & petrol go up faster than inflation, so I would ask them to guarantee greater than inflation increases in your allowance.

That little lot should upset them!

BTW, I get a lousy £4,800 p.a BEFORE tax for my company car and it is STILL cheaper for me to have my own Scooby than through work( especially as it is n EU import, so I'm not paying £22k).

Hope this helps.

Pete




[This message has been edited by PT (edited 17-05-2000).]