Car Allowance - do I buy, lease or use PCP?

Buy it outright at the right price / used / 2years old -20k miles for the best price

How can you pose that question with out explaining what car/genre you want, on what basis you need the car etc?

Check what are your company car requirements. In my case, the car has to be max 6 years old (but 4 years old max when i register on my name), emissions under 126 g/km, 4 doors and no soft tops. Your insurance policy most probably will have to include Business Use too.
I usually check Approved Used Cars from Skoda or Ford, 1 or 2 years old for example. Below it's a page where you can find the schemes from more retailers: honestjohn.co.uk/app…es/
I negociate with retailers to get 0% financing on the car over 4 years and a discount on service packages. For calculations, I compare the monthly payments + insurance with the car allowance after tax.
My aim is to have the car paid in 4 years time (including insurance and services), so that the 5th is profit. Then change the car.
Also, remember to write down how many business miles you are doing to claim the tax relief from HMRC at the end of tax year. (edited)

Another consideration is do you have any plans to change jobs?
Four year lease and decide to move on in two to a job with no allowance, company car provided or WFH, obviously no idea what OP does, whilst you will probably still need a car do you really need an expensive lease that is no longer covered by employer? (edited)

groenleader01/06/2021 07:27

How can you pose that question with out explaining what car/genre you …How can you pose that question with out explaining what car/genre you want, on what basis you need the car etc?Read lessRead more

Or if the company has rules about what you are allowed to get? plenty of firms have requirements like no soft tops/minimum age, 4 door etc

Also depends on mileage, as more mileage will increase monthly payments on lease etc. I recently have bought car outright, worked out that over 3 years car allowance will pay for everything.

as giboning says, check requirements, on my scheme the car has to be within 5 year old at purchase, i have workmates driving 15 year old cars..

do you do many business miles, i do virtually zero so cash is king.

if its a cash allowance, it'll be a gross figure (ie taxable), so its upto you, do you want a new flash, reliable or a cheap car.
my car allowance is invested in a ISA stock and shares monthly. i doubt it'll ever go to buy a car.. (edited)

Thank you all for taking the time to comment. You have all helped me decide what I was possibly thinking anyway, and that is to buy a car outright (obviously within the company conditions) and use the car allowance to replace my savings. At least if I own it, I have no restrictions on mileage, and will have an asset once I have replaced my savings with the car allowance. Thank you 🙏