company car or car allowance?

    What would you choose....

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


    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....


    35% of RRP for a Megan Tourer isn't much of a perk, you can find 30% and over discounts on the open market:…ne/

    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.

    Can't you take the cash and get a lease? Usually works out cheaper (or at least it did for me)

    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.

    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.


    Can't you take the cash and get a lease? Usually works out cheaper (or … 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

    Original Poster

    If you have gone for the cash what cars have you chosen?
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