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Company car vs allowance - which is better

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  • 04-01-2012 4:15pm
    #1
    Zippy2010
    Registered Users Posts: 6 ✭


    Looking for some expert advice please
    Am thinking of changing jobs.. I have a company car (diesel 30K band)at the moment which is all expenses paid.. (anything goes wrong its paid for etc) I dont do a huge amount of mileage for work (mostly 2 and from airport)- think there is 50K KM on car and its 2.5 years old..
    The new company is offering me 10,400 allowance instead of an actual car.. Just wondering will I be better off taking this. Want to make sure I am making the right decision (total package etc).
    Will the new company then be oblilged to pay for mileage in the new car if its work related or is this considered in the 10,400?
    Is it likely that my insurance premium will be very high as I have been insured under company insurance for the past 6 years?
    Thanks for your advice.


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    #2
    helimachoptor
    Moderators, Science, Health & Environment Moderators Posts: 21,653 Mod ✭✭✭✭helimachoptor


    Zippy2010 wrote: »
    Looking for some expert advice please
    Am thinking of changing jobs.. I have a company car (diesel 30K band)at the moment which is all expenses paid.. (anything goes wrong its paid for etc) I dont do a huge amount of mileage for work (mostly 2 and from airport)- think there is 50K KM on car and its 2.5 years old..
    The new company is offering me 10,400 allowance instead of an actual car.. Just wondering will I be better off taking this. Want to make sure I am making the right decision (total package etc).
    Will the new company then be oblilged to pay for mileage in the new car if its work related or is this considered in the 10,400?
    Is it likely that my insurance premium will be very high as I have been insured under company insurance for the past 6 years?
    Thanks for your advice.


    Hi there, in a pretty similar position now aswell.

    Have taken a car allowance and just trying to pick a car.
    I'm not sure on the insurance, I think most companies will accept a NCD even if its on a company policy but not 100% sure on this.

    You should also be able to claim mileage.

    Best of luck with it!


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    #3
    MarkR
    Moderators, Regional Midwest Moderators Posts: 11,076 Mod ✭✭✭✭MarkR


    Check your mileage rate also. Factor in cost of fuel, servicing, tyres, depreciation on your car etc.

    My car is coming up on 230k miles. Worth nothing to everyone but me. Means no resale value really.


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    #4
    Bandana boy
    Registered Users Posts: 4,326 ✭✭✭Bandana boy


    Zippy2010 wrote: »
    Looking for some expert advice please
    Am thinking of changing jobs.. I have a company car (diesel 30K band)at the moment which is all expenses paid.. (anything goes wrong its paid for etc) I dont do a huge amount of mileage for work (mostly 2 and from airport)- think there is 50K KM on car and its 2.5 years old..
    The new company is offering me 10,400 allowance instead of an actual car.. Just wondering will I be better off taking this. Want to make sure I am making the right decision (total package etc).
    Will the new company then be oblilged to pay for mileage in the new car if its work related or is this considered in the 10,400?
    Is it likely that my insurance premium will be very high as I have been insured under company insurance for the past 6 years?
    Thanks for your advice.

    How much BIK are you currently paying on the company car ? Can you expect similar with the level car they are offering you

    I recently took the allowance instead of the car
    The maths i did was

    Running a car costs
    Insurance +Tax =get quotes
    Constantly paying for a car ,I factored this in at 3k a year for me but depending on what level of car you go for
    Keeping a car on the road ,I put this in at 1k a year ,might be a little high but its close
    Diesel at 20Km a year you can expect to come in just under 3K

    Subtract your BIK from this figure

    Work out your take home from 10,400

    If the first number is bigger take the Car otherwise the allowance.
    If they are very close probably take the car as there is reduced hassle in letting the company manage all problems

    On the mileage ,I get a reduced mileage figure when using my own car for my company circa 14cents a KM


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    #5
    Zippy2010
    Registered Users Posts: 6 ✭Zippy2010


    Hi guys
    Thanks for the responses. Much appreciate.
    I have nominal pay added to my salary of 756 per month before tax. I would be on the higher tax band.
    I suppose I should ask whether they pay mileage - I just wondered if this was standard if you got a company car.
    bandana - unfortunately I don't get option of a car..


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