Jim from Yateley

Hi

I'm not totally sure if this is the right forum for this, but here goes

I work for a nice company and for some reason they have let me have an Impreza WRX saloon as a company car. It was registered in December '02 and is due for replacement in December this year, at which time, it will have about 70,000 miles on the clock and a full subaru service history.

I am wondering how much it is going to be worth? I have an option to buy the car and come out of the car scheme - which would save me quite a lot of tax.

I assume if my are is well maintained then it should be good for 150,000 miles or more? Does anyone have experiance of high mileage bug-eye's? What should I look out for?

Thanks

Jim

Gus M

If you can negotiate a good price and the financial benefits of coming out of the car scheme are in your favour you would be silly not to, after all, who knows the car better than you. As you rightly say a well maintained car should be capable of high mileages and if you time things properly you could perhaps get a major service done before the sale goes through.

Good luck and negotiate hard.

rotty

My 3 year old company WRX ( bugeye ) with 68000 miles was offered at £8500 , this was in January this year

BlueBoy

Have a think about the mileage your doing though - the the company pay for all your fuel at the mo and youl'll be paying it yourself and claiming back in the future, it might not work out in your favour at all with this car

Do the company also insure it? As the premiums go up quite a lot when you tell the insurance peeps that you do 20-30K a year most of it for business.

I take the cash myself, but lease another car as well as run the Scoob to offset some of the massive costs of doing a high mileage each year - just some food for thought though

skoosh

Some valid points there however, I opted out of a company car scheme last year to buy my first Scoob.

I had a brand new mondeo for 2 months then decided to opt out. Mondeo was costing me about 120 quid per month in tax and I claimed 10p/mile for business use.

After opting out, my company pay me 4000 quid per annum to pay towards my car and 40p/mile for business miles, generally about 400-600 miles per month depending.

More importantly, my company insisted on me having business insurance cover and PRIVELEGE insurance cover that completely free of charge, this was added after policy was taken out, originally wanted an extra 20 per month.

You have the luxury of being able to buy a car that you know and desire and get paid for it, assuming that your' company will gaive you a car subsidy/allowance.

I would seriously consider buying it, at the very least if you decide to sell in the near future, chances are you would not lose any money.

Just my opinion.

Skoosh.

BlueBoy

I get 3900 a year towards mine - but only 18p a mile

I'd have a Ferrari if they gave me 40p

rotty

£5550 a year here but only 12p a mile

D Noble

you should be in a strong position to get a good deal out of the company,although if it is only two years old it will only have been written down by half of its purchase price, the difference between what it is on the companies books for and what they get for it ,the company will have to pay corporation tax on, are you on good terms with your employer?
in my situation (i am a partner in our company) i could have bought my my00 for 2.5k,but got 9.5k(nearly 4 years old), but opted to buy a merc ml ,so wanted to put as much in cash towards it as poss, down side is the government gets 25% of 7k,which is seen as profit!!
strick as hard a bargain as poss!

regards
dave

Jim from Yateley

Thanks for the responces

What I really need to know is how much a 2 year old WRX saloon with 70k miles on the clock is worth. My company leases the car from a leasing company so I'm not totally sure what the deal is going to be when they choose to dispose of the car - They seem a bit random with their pricing - we have had some 3 year old 3-series BMW with 90k+ miles being offered at what I would consider expencive for a low mileage car from a BMW dealer, but at other times they are an absolute bargain - I need to be able to work out if they are doing a good deal

Rotty - if your company only pays you 12p/mile, you should be able to claim the difference between that and 40p/mile for the first 12k miles per year from the tax man - it seems that he thinks its reasonable to get 40p/mile and if you dont, you can offset the difference at the end of the year - I like the idea of a big cheque from the "infernal revenue"

Regards

Jim

SilverTurboWagon

I get £7800 before tax and a fuel card.

hail-hail

I get £550 pcm as a car allowance and all my fuel paid for. I can then claim tax releif on fuel back fo the taxman.
Remember your car allowance will be taxed, for me it's 40% tax so although I get £550 it is only £330 in spendables

BlueBoy

Have you done this already (cos I didn't know about it till the start of this year and asked them could I for the last 2 years and they said yes)?

If you have (or anyone else) can you give me some info on which form is needed, as I asked and they just sent me a normal tax return form (which I'll have to do anyway)

Jim from Yateley

Hi

I'm still in our company car scheme so I've not yet started claimiing business miles back from the tax man, but I think the rules are 40p/mile for the first 12k, then its 25p/mile after that (per year)

It might be revised slightly now, but I found this on the inland revenue site

http://www.inlandrevenue.gov.uk/manu...l/EIM31240.htm

I hope this helps

Jim

BlueBoy

I've had a look at that thanks Jim, people have done all sorts in our place so I'm completely confused now (some are even adding the extra to their expenses when they're on their first 10K of the tax year, but claim that you can only do it once and that's that). I didn't argue, but thought they were mightly silly to do that once, if you can claim back every year instead.

Cheers for the info - sorry to get you off the topic of whether you should go for it or not

Andy

rotty

Re this tax rebate , I will be claiming last year ( my first year with my own car ) , this is done on the normal tax return , I'm just waiting on my P11D

As for this year we have a new system at work where we fill a mileage capture form ( online ) and the system pays us the mileage money and also the tax relief , my employer the sorts everything with the IR


I'm fairly sure that the figures are 40p for the 1st 10k and then 25p after