BIK versus Own Car

Hellrazer

Need a bit of help off you knowledgeable folks.

BIK is currently costing me 3500 a year and Im seriously considering going back to my own car.

Just checked with insurance company and I can get insured up to a 1.6 for under 300 euros.

Am I mad sticking with the bik when I reckon I could keep a car on the road for less than the BIK is costing me and with a changeover to emmissions based system I could even be worse off!!!

Thanks
Richie

Lex Luthor

Richie,

3.5k out of pocket a year is not a lot to lose when you factor in the running costs of your own car.

Do your company pay for servicing, tax & insurance?

If you go back to your own car will you be compensated?

Leprechaun77

It is just my experience but there is no way you will be better off on a like for like basis. The BIK only is €300 per month. You will not get a similar car at the same cost when you take into account servicing /tax/insurance.

The only time you should be considering dropping the company car is if you are getting a large car allowance instead, and in such an event you are probably only going to be financially better off if you get a cheaper model than that on offer through the lease+bik option.

Hellrazer

Lex Luthor wrote: »

Richie,

3.5k out of pocket a year is not a lot to lose when you factor in the running costs of your own car.

Do your company pay for servicing, tax & insurance?

If you go back to your own car will you be compensated?

Tax and Insurance is included--no servicing because I dont have the same car for more than 3 months.
But I always did service my own car before anyway so not really an issue.
I would get to keep my fuel allowance if I went back.

The only compensation is that Id be better off by about 60-70 a week in to my pocket.


I dont even use the car after hours--have the 7 seater for the clan
Company car sits in the drive way from 5.30 on Friday till Monday morning.

Im thinking of just picking up a 1.0l a to b car just for commuting to work.

Decisions,decisions!!

Berty

Lease a car. Cheaper than buying and you get a new one every 3 years. They service it, tax it and all you have to do is insure it in your own name.

-Chris-

First thing I'd do is talk to my employer and see what the company car allowance is for people who are due a car and don't take it.

Seth Brundle

Hellrazer wrote: »

Just checked with insurance company and I can get insured up to a 1.6 for under 300 euros.

Does that include use for work or just a standard private/social/domestic policy?

Lex Luthor

Berty wrote: »

Lease a car. Cheaper than buying and you get a new one every 3 years. They service it, tax it and all you have to do is insure it in your own name.

Really? Any idea how much a 3yr lease on a 159 sw Ti 2.4JTDm would cost?

mickdw

So 3.5k bik you will be saving. How much of a car allowance will your employer offer instead of company car?

I think alot of people running company cars seriously underestimate the true cost of runnig a new car privately. You have depreciation, Insurance, Tax, servicing, tyres, petrol.

You may save money if the company give you a nice car allowance instead of the car and you then buy a real cheap runaround.

-Chris-

Lex Luthor wrote: »

Really? Any idea how much a 3yr lease on a 159 sw Ti 2.4JTDm would cost?

I'd start off picking something with a better resale value if I was looking at leasing - lease rates are made up of purchase price (less discount), residual and cost of funds.
Some brands will have a greater level of fleet discount (Ford, Nissan, Toyota etc.), which will play into your hands. Some cars will have a better residual value than others, most leasing companies will have similar cost-of-borrowed-funds.
I remember quoting people for €40k 3-Series for a cheaper monthly amount than a €35k Mondeo cost, and I know which one I'd choose... residual is the most important component by a long shot!

mickdw wrote: »

So 3.5k bik you will be saving. How much of a car allowance will your employer offer instead of company car?

I think alot of people running company cars seriously underestimate the true cost of runnig a new car privately. You have depreciation, Insurance, Tax, servicing, tyres, petrol.

You may save money if the company give you a nice car allowance instead of the car and you then buy a real cheap runaround.

+1. Private cars cost quite a lot. Company car allowances often aren't as generous as they seem when you have to work in running costs, depreciation and contingency.

I reckon you're right Mick - if you're looking for savings, take the allowance and buy a runaround that's a couple of years old. If you're looking at like-for-like, company car is nearly always better.

Hellrazer

kbannon wrote: »

Does that include use for work or just a standard private/social/domestic policy?

I dont use the company car for anything work related.I drive in and it sits there till I leave.

Seems to be the usual motor trade company car to be honest.--theres no allowance given but the car is part of my package.So if I give it up all Ill gain is the difference in the bik into my pocket plus the fuel allowance.

Im thinking of something around a grand--a little runaround tbh.Couldnt really care what it is once its NCT`d and gets me from a to b.

Lex Luthor

AudiChris wrote: »

+1. Private cars cost quite a lot. Company car allowances often aren't as generous as they seem when you have to work in running costs, depreciation and contingency.

I reckon you're right Mick - if you're looking for savings, take the allowance and buy a runaround that's a couple of years old. If you're looking at like-for-like, company car is nearly always better.

I think this is right....it can really hinge on the car allowance you get.....

I get €12k before tax plus 27c/km. I have done the maths and it would cost me about €350 loss going from allowance to a €35k valued company car.

busbybhoy

I also have a company car and pay BIK. Because i do so much mileage its pretty low. I do resent the fact that they include 5000 private miles per year when calculating as i park the car from Friday to Monday.

A friend of mine who is in a similar position is charged for private mileage from his company on top of paying BIK. Can they do this?