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company car or car allowance?

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What would you choose.... Audi A4 company car...change after 3 years and get taxed on it.... Or Renault Megane sport tourer purchased new with 35% discount off RRP (company perk) it would cos… Read More
RBH Avatar
6m, 4w agoPosted 6 months, 4 weeks ago
What would you choose....

Audi A4 company car...change after 3 years and get taxed on it....

Or

Renault Megane sport tourer purchased new with 35% discount off RRP (company perk) it would cost circa 450 a month over three years to purchase and after three years you have the residual value of the car if you sell) car allowance is circa 500 a month but that would be taxed too....
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RBH Avatar
6m, 4w agoPosted 6 months, 4 weeks ago
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#1
35% of RRP for a Megan Tourer isn't much of a perk, you can find 30% and over discounts on the open market:
http://www.honestjohn.co.uk/cars-for-sale/search/New/Renault/Megane/#make=Renault&model=Megane&shape=Estate&engine=&trim=&gearbox=&p1=&p2=&s=PriceAsc&pg=1

Unless that's a pre-order on the new model of course.

I would see how much you pay in tax on the A4 and whether there any restrictions on it. The outgoing megane estate wasn't a particularly special car so there's not much reason to go for it over das boring.
#2
Can't you take the cash and get a lease? Usually works out cheaper (or at least it did for me)
#3
In general, both methods are more or less the same if you going for similar price/co2 car.
So if you don't like the A4, go car allowance.
Car allowance gives you 2 options (talking new cars), PCP or PCH.
PCH normally works out cheaper overall, especially when the total cost is less than the cost of depreciation.

An example would be, your £500 after tax is around £375.
My upcoming PCH on a £35k car is £2400 deposit, £199/mth for over 2 years, Total = £290.71/mth over 2 years.
So with that, you've got a little left over for services and possible scratches/dents/repairs when you hand it back.

Or you just go 2nd hand car or really cheap new car, and pocket the difference.
#4
If you choose the Audi I won't let you in the queue. One of my driving rules.

But as people have said a lease is probably best.
I'm guessing work will be supplying a fuel card/covering fuel costs? If so taking the money and getting a thirsty car which are less desirable will get you more car for the cash.

Also I'm guessing you will be doing 20k+ miles per year so comfort should be high on the list.
#5
Evostance
Can't you take the cash and get a lease? Usually works out cheaper (or at least it did for me)

I agree, done this the last twice and have a car and save money off the £460 cash alternative even after tax
#6
If you have gone for the cash what cars have you chosen?

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