Caporegime
Edit - doh, he's right again.
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Fact is that it is a loan car costing you over £500pcm.
And think of the car he could ALSO finance as a second car for £500 a month!
I'll try one more time to get you to see it my way.
Even better is if you already have a car that you'll happily commute in...you've just given yourself a 6k payrise .
Ok, so I struggled to get this but I think I am there now.
Options
1 - I could pay c.£2600 per annum for a company car
2 - I could receive c.£3600 to pay for a car, plus running costs
Financial Impact
1 - I am out of pocket by c.£200 a month
I do not see option 1 costing me £500 a month due to the loss of the extra income, as that money would be used to fund a car regardless.
[TW]Fox;22312529 said:Thats it - don't think of it any more than that because the difference in net salary between the two options is £2600+£3600.
No, you are out of pocket by more than that - not only must you pay £200 a month but you also dont get the additional salary you would have got had you not chosen the company car.
But it DOES cost you £500+ a month. What this means is that your budget to play with for your private car isn't just the car allowance, its the car allowance AND the company car cost you'd have paid. Just like the amount you'd pay for a company car isn't just the tax, its the tax PLUS the opportunity cost of the payrise you give up to get the car.
How I'm starting to see it really, and now I'm used to that money each month won't fancy not having it anymore. Plus student loan finished this month so that's effectively another reasonable rise
That's a day I'm looking forward to. I keep getting tempted to pay it off, but the rate is only 1.5%!
I had you down as much older than someone whom would have recently graduated. Funny how the internet masks the real people behind the posts
Fox, that comparison is really interesting, but for us, i'm not so sure it would work so well as she'll be doing so little business mileage, probably no more than a 1000 per year business and 10,000 private.
I'd be interested to hear what you'd recommend car wise if we took the allowance. Only stipulation is that it has to be reasonably practical as it would be the only car in the household. No kids to consider at this point but who knows in the next 3 years.
The civic was bought to replace a Celica 190 as I was doing 25k a year. I now commute on the train due to an office move, giving the drop in mileage and no loner needing/wanting diesel.