Guinness
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| posted on 12/12/05 at 09:08 PM |
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Anyone opted out of company car scheme?
Basically I've had a company car for the last four years, but now have a choice between continuing with it or opting out.
They will give me £400 month allowance, plus 10p / mile for diesel or 13p / mile for petrol.
Can anyone point me in the direction of a website to see if it's worth my while? Either that or share experiences / problems?
Cheers
Mike
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Peteff
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| posted on 12/12/05 at 09:15 PM |
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Hire one from Ling, she top No.1  .
http://lingscars.com/index.php
yours, Pete
I went into the RSPCA office the other day. It was so small you could hardly swing a cat in there.
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dave1888
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| posted on 12/12/05 at 09:16 PM |
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I think you will be taxed on the £400, so you need to take that into account.
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stevebubs
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| posted on 12/12/05 at 09:26 PM |
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you're also taxed on the value of the company car, if you don't opt out!
The company car tax is normally more than what you'd pay on the £400 they'd give you instead.
[Edited on 12/12/05 by stevebubs]
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zilspeed
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| posted on 12/12/05 at 09:33 PM |
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I recently opted out. Saved 100 quid a month income tax. Went from 8p a mile to 40p a mile expenses.
well worth doing if you can live with running your own car again. Personally, I can't get enough of it. 
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Hellfire
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| posted on 12/12/05 at 09:34 PM |
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It really depends on your own personal circumstances and only you know those. For some people it makes good sense to opt out and for others it makes
no sense at all.
[Edited on 12-12-05 by Hellfire]
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Guinness
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| posted on 12/12/05 at 09:42 PM |
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Thanks guys.
Peteff, just pmsl at Ling's website. I saw that missle truck being built in Newcastle a while back! She funny.
Being a complete petrol head, I hate waiting two years for my car to change from one boring saloon to another.
I know that tax is really complicated (dependant on which way wind blows, price of loaf of bread etc) so is there any way of predicting your tax
liability or do you just have to wait for the bill from the revenue?
Mike
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zilspeed
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| posted on 12/12/05 at 09:42 PM |
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Indeed - mine was a Passat TDI 4motion.
Ok, I had the car, but I paid 60 quid a month contribution to the lease plus the tax was a total of 160 quid a month. I did around 900 miles a month
- the 8p a mile didn't remotely cover the cost of the fuel.
Ye Olde Audi now makes money for me.
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zilspeed
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| posted on 12/12/05 at 09:44 PM |
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quote:
Originally posted by Guinness
Thanks guys.
Peteff, just pmsl at Ling's website. I saw that missle truck being built in Newcastle a while back! She funny.
Being a complete petrol head, I hate waiting two years for my car to change from one boring saloon to another.
I know that tax is really complicated (dependant on which way wind blows, price of loaf of bread etc) so is there any way of predicting your tax
liability or do you just have to wait for the bill from the revenue?
Mike
P11D value of the car x the rate of the car based on emissions x the rate you pay tax at = your annual tax bill.
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the_fbi
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| posted on 12/12/05 at 10:27 PM |
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http://www.comcar.co.uk/ is a good website to look at and will calculate what you're paying for the co. car.
I recently opted out too.
I could have had a Passat SE TDI 130 which I must admit is a great car, if you've got a family and need the space.
If you actually have a need, or would like to have, one of the cars you could have, you won't find a cheaper way than having it as a company
car. But, if like me, you want some flexibility of having a car you can change at will, modify etc, opt out and have some fun.
I've recently opted out and am now running a 2001 2.2 DTI Vectra which cost me £2200. I'm getting £375.00 a month which means after a
year, the Vectra is almost paid for, even after TAX, MOT, Insurance etc.
If I sell it for £1000 (which I should easily) then I'm up from what I would be having a company car. Which would have cost me around £800 for
the Passat.
The extra £1800 a year isn't a lot, but thats around £3K before tax. So it is actually a lotta cash.
Next year, if I've got myself a "fun" car built then I may opt back in again, but currently I'm thinking a VX220 with some
engine mods may just replace all car cars, fun and "work".
Not having to worry about MOT/Servicing is quite a nice side of having a co. car. Especially if you buy your own personal car and have to learn all
the oddities and fix a few niggles.
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ditchlewis
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| posted on 13/12/05 at 08:42 AM |
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I had a company car for 12 years, until i move companies and they did not give cars but a car allowance.
at the time i had a 2lts vectra gls estate and i bought a VW Bora PD130.
I was paid £680 per month with 0.08p per mile and 25000 business miles a year, i was raking it in.
when i left and moved on i was offered a vectra company car again, but i just change the Bora for a Golf GTTdiPD150.
I am now based in the office and few business miles so this car costs me but hey, a boring vectra or a Golf GTI i know which i would choose.
Plus Points
Choose your own what ever you want
helps you get a bigger mortgage as the allowance is counted as part of your salary
no tax problems on the company car
better standard of services at garages over a company car
bad points
watch out for the CSA counted as part of your salary whilst the company car is not.
arranging all the running costs for your own car.
all in all i would never go back to a company car, im now in the process of buying my fourth car (mini cooper S) so i will have plenty of choice each
morning.
Ditch
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adrianreeve
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| posted on 13/12/05 at 08:54 AM |
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I opted out of my company car scheme 3 years ago and haven't looked back. I didn't like the fact that my company car scheme was changing
to only cars from the Ford group, so opted out and bought an Audi A3 1.8T Sport.
You do have to pay tax on your allowance, but you can claim tax back from the inland revenue for business miles undertaken in your car (Not including
the daily commute to and from work) You get 40p/mile, less any allowance your company gives you, for the first 10000 miles, and 25p/mile less the
company milage allowance thereafter.
I do about 14000 business miles a year, and get 14p/mile from my company, so I claim 10000 x 0.26 = 2600, plus 4000 x 0.11 = 440, for a grand total of
£3040 that I can claim a tax rebate on. I pay the higher rate of income tax, so I recieve £3040 x 40% = £1216 as a tax rebate.
Hope that helps you a bit!
Cheers, Adrian
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smart51
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| posted on 13/12/05 at 09:31 AM |
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£400 per month will but a fiesta outright in 2 years, a focus in 3 and a mondeo in 4 (base model). Any residual value after that time is a bonus.
13p / mile = 33 MPG at 94.9p/litre. Take out the cost of sevicing and tyre wear and you have to manage 43 MPG to break even.
10p / mile for diesel at 96.9p = 44 MPG or 63 MPG including 3p/mile for servicing and tyres.
Taking into account the residual value against your next car, a reasonable saving may be made, depending on your miles / year and MPG.
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Paul M
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| posted on 13/12/05 at 10:02 AM |
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Opting out of a company car scheme is always good news for an employee. £400 per month will get you a very nice car. Guess what, I run a contract hire
and leasing company. Email me for a quote or have a look at
www.vehicleoptions.biz/rotherham
pmattingley@vehicleoptions.biz
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tul214
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| posted on 13/12/05 at 10:27 AM |
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I am currently thinking of opting out and was told of this site. Have not had a go yet but may be of some help
http://www.cashversuscar.co.uk
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zilspeed
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| posted on 13/12/05 at 10:34 AM |
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I'm firmly in the 'buy a banger and trouser the money' category.
I know that £400 a month buys all sorts of stuff, but can't quite bring myself to do it. My attention span is too short - I need a change more
than that allows.
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Lawnmower
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| posted on 15/12/05 at 10:24 PM |
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My boss has told me that he doesn't want to continue my company car as I moved house (52miles away from office= 105 mile a day round trip). Said
the depreciation i put in private mileage at ~20k miles a year was unconomic for him. 
Not help by the fact compan recently got sold and equivalent ranked staff elsewhere dont get a car
he was talking about extending my lease on my 3 year old astra dti, which ends tomorow, however it snapped its cambelt 2 weeks ago and now is not sure
whats happening.
he did float the option of a car allowance of ~4k a year. which after tax is around 3200 pa, after insurace ~2500 a year, spread over a year, not
much to buy a car which has to be maintained and kept in 100% roadworthy condition.
did point out that I had just borrowed a substantial amount to buy a house and was unlikely to be able to afford a car...
in my case, "opting" out and putting lots of private miles is unlikely to be economic (wear and tearetc). If it does happen will be
getting a nail of a diesel, or a Mazda 323, or xedos.....
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DEAN C.
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| posted on 15/12/05 at 11:03 PM |
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Hi, I have just gone to a company car because I couln't afford NOT TO!
New diesel megane 1.5td ultra low emissions on a £12k car works out at £45 a month!!!!!
I also pay 9p per mile private usage but seeing as I kept my own car at home I dont do much private mileage.
Have a look at the new Renaults with the ultra low emission ratings before you dismiss company cars,the tax is much lower than VW/Audi and the usual
fords.
Mine goes like stink,electric full glass roof,electric heated fold back mirrors,CD player,computer,Air conditioning,six speed gearbox,and handles like
a sportscar,really!!
The only drawback is I get to shake my ASS! everyday....
Once I've finished a project why do I start another?
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James
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| posted on 16/12/05 at 11:17 AM |
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quote:
Originally posted by Peteff
Hire one from Ling, she top No.1 .
http://lingscars.com/index.php
OMG!!! That site is totally brilliant!
For those that haven't already, try reading it in the accent of the women at your local Chinese takeaway!
Is it a genuine site?
Cheers,
James
------------------------------------------------------------------------------------------------------------
"The fight is won or lost far away from witnesses, behind the lines, in the gym and out there on the road, long before I dance under those lights."
- Muhammad Ali
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Guinness
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| posted on 16/12/05 at 12:37 PM |
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Thanks for all the reply's guys.
Opted out. Going shopping this weekend for a new motor. Not new, will be a Zilspeed special for a while until I see how the money works out, then
we're off to see Ling.
James, I don't know if she's genuine or not, but I have seen the missile truck on the side of the A1! So if it is a hoax, it's a
very elaborate one.
She very funny.
Mike
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steve_gus
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| posted on 16/12/05 at 11:25 PM |
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i was forced to 'opt out' by a change of job not allowing me to have a company car, just the funding.
My previous car was a 320d bmw estate, 8 months old. That cost me about 240 quid a month in tax, and the company paid all the fuel.
So, now I have the 240 back.
on top of that I get 6k a year allowance, but thats taxed at 40% and so I get 3,600
add that to the 2880 i save and it looks like a fantastic 6480 a year. 540 a month.
However, it costs me 600 a month to run a renault laguna 32k miles a year.
so, in my cas due to high milage i am worse off - i have a 'lesser' car and it costs me 60 quid a month more. Plus my monthly running
costs dont include anything for depreciation and a replacment car. And I had to put 6k of my own money down on the car, and fund another 6k. And in 3
or so years the car is a 100k wreck.
essentially (approx figures)
3000 petrol
500 services
750 tyres
400 insurance
150 tax
2136 car loan (6k loan, on 12k car)
= 6,936 quid a year.
its more than my mortgage!
So, the only advantage I have is that my tax code and pay pack looks better, and its my car so no 'you cant do that or fit that or take it to
france' crap from the company.
if you do low milage, you might do better opting out. But if you are high miles and had fuel included, its not as good as you may think....
atb
steve
http://www.locostbuilder.co.uk
Just knock off the 's'!
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DEAN C.
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| posted on 17/12/05 at 11:21 AM |
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Hi Steve, I see what you are saying but it really depends on the company.
I get a fuel card and only pay 9p per mile on private mileage.
[Edited on 17/12/05 by DEAN C.]
Once I've finished a project why do I start another?
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steve_gus
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| posted on 17/12/05 at 05:51 PM |
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yep, there are a lot of permutations! In my case I had a fuel card and could drive to the moon and back on private milage - it was all paid for. All
I had to worry about was not exceeding lease milage. In the 20 years I had a company car I recon 90% of my milage was private! Mty last car was mostly
used commuting 32 miles each way to work.
If you are on a 22% tax band and drive only a short way to work base, and have a relatively low cost car then it probably works out well.
Getting a 22k car on 30,000 miles mostly private commuting, it doesnt stack up at all 
atb
steve
PS Dean - we have a 1.6 petrol megane dynamique of the 'ass' kind - we are happy with it.
Id be interested how many mpg you get from your .15 dci - is it the 86 or 100hp?
[Edited on 17/12/05 by steve_gus]
http://www.locostbuilder.co.uk
Just knock off the 's'!
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DEAN C.
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| posted on 18/12/05 at 07:28 PM |
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Hi Steve, my Megane is the 106hp euro iv six speed,as opposed to the 86hp.
I think they were 80 and 100 before the euro iv spec.
I get 55mpg overall with driving mixed between crawling in traffic to 200 mile motorway runs.And I'm not classed as a steady driver,someone in a
little less of a hurry will probably get more.
I did test drive the 120 or 130 hp model and they are very fast,but I'm not moaning about mine, it's plenty fast enough once the turbo is
spinning.
Once I've finished a project why do I start another?
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steve_gus
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| posted on 19/12/05 at 07:55 PM |
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thanks for that
I have a 1.9dci laguna - wouldnt say it was very fast, just adequate (10.5 secs!).
I was going to get a 100hp 1.5dci estate megane but had my mind changed.
Im getting 42 - 48mpg from the laguna, tending to the upper figures. Still, mid 50s would hav ebeen better. Saw a 80hp megane with 58mpg on the fuel
computer in a garage...
atb
steve
[Edited on 19/12/05 by steve_gus]
http://www.locostbuilder.co.uk
Just knock off the 's'!
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