Possible promotion; should I take increase or ask for company car

Masala

Hi

My boss is retiring at end of 2017 and looks like I could be in the running for his position.

Just wondering should I take the increase in salary (possibly €10k) or ask for a company car?

I am on top rate of tax and currently drive a 12-Reg car.

Any advice for me... What's best??

pa990

Masala wrote: »

Hi

My boss is retiring at end of 2017 and looks like I could be in the running for his position.

Just wondering should I take the increase in salary (possibly €10k) or ask for a company car?

I am on top rate of tax and currently drive a 12-Reg car.

Any advice for me... What's best??

take the raise... then if your work involves travel.. then look for travel expenses, which can out strip the value of a company car. If youre only doing small mileage.. ask for a company car next year.

colm_mcm

BIK is a killer unless you're doing serious work mileage.

Masala

colm_mcm wrote: »

BIK is a killer unless you're doing serious work mileage.

No... Maybe 20,000 miles (32,000 km). All mainly personal. Probably only doing 5,000 business miles

colm_mcm

Masala wrote: »

No... Maybe 20,000 miles (32,000 km). All mainly personal. Probably only doing 5,000 business miles

Then just ask for money if you think you'll get it

R.O.R

Do you get all fuel paid for with the car and do you get a choice of car?

Paid fuel and something reasonable on BIK and I'd take the car. I've got a spreadsheet in work with running cost figures for a car vs company car which I'll upload tomorrow.

Masala

R.O.R wrote: »

Do you get all fuel paid for with the car and do you get a choice of car?

Paid fuel and something reasonable on BIK and I'd take the car. I've got a spreadsheet in work with running cost figures for a car vs company car which I'll upload tomorrow.

To be honest... Current boss does not have Company Car.. So the concept would be new to the company!! I would not see me getting free fuel....repairs, tyres, insurance ,road tax.. Yes. I presume there would be a mechanism to reclaim any business mileage I do. As I say.. Am starting on blank sheet and hence all advice is welcomed

pa990

take the cash. sticky tape, stapes. stalpler, post-its, biros, and everthing else that isn't nailed down and run.....>>>>>

robtri

why not ask for both!!!!

worst they can say is no...

Eric Cartman

Masala wrote: »

To be honest... Current boss does not have Company Car.. So the concept would be new to the company!! I would not see me getting free fuel....repairs, tyres, insurance ,road tax.. Yes. I presume there would be a mechanism to reclaim any business mileage I do. As I say.. Am starting on blank sheet and hence all advice is welcomed

if you're boss isn't driving a company car, they're hardly going to let you pick something nice. The company dacia logan or corolla is hardly worth a recognition of your skills . Take the money.

R.O.R

Masala wrote: »

To be honest... Current boss does not have Company Car.. So the concept would be new to the company!! I would not see me getting free fuel....repairs, tyres, insurance ,road tax.. Yes. I presume there would be a mechanism to reclaim any business mileage I do. As I say.. Am starting on blank sheet and hence all advice is welcomed

New concept to the company you say?

Definitely take the car, it's 100% the best option, by far.

As the new boss, I think you should get a 7 Series, and everybody else within the company should get something half decent as well. Just think of how high staff morale will be after that! Productivity will go through the roof, along with your profits, and I'm pretty sure your manhood will also get longer too!

I'll PM you my contact details and we can take this 100+ fleet deal to the next stage

colm_mcm

Nice objective advice there

Eric Cartman

R.O.R wrote: »

New concept to the company you say?

Definitely take the car, it's 100% the best option, by far.

As the new boss, I think you should get a 7 Series, and everybody else within the company should get something half decent as well. Just think of how high staff morale will be after that! Productivity will go through the roof, along with your profits, and I'm pretty sure your manhood will also get longer too!

I'll PM you my contact details and we can take this 100+ fleet deal to the next stage

management - 7 series
senior staff - 5 series
junior staff - 3 series
part time staff - octavias
all fully covered for everything except fuel, and you should all get fuel cards too.

its only fair really :pac:

colm_mcm

You should include a van in that list too.
In case anyone's moving house or whatever.

Eric Cartman

colm_mcm wrote: »

You should include a van in that list too.
In case anyone's moving house or whatever.

sure if its all OPEX may aswell give somebody a range rover for that.

colm_mcm

Oh, he'll make his mark on the company alright.

BnB

I did the sums on this as I was also considering similar.

Without a remote shadow of a doubt, unless you are doing massive mileage, taking the money works out better. BIK is an absolute MoFo

If you want a span new car, take the money (and pay the higher rate of tax on it) and spend whatever is leftover every month paying off a loan or PCP on a new car. Even with having to come up with the deposit, it still works out much much better.

freddieot

This may seem a boring point (depends on your age etc.)

If the 10% will play towards your pension then take the increase and if necessary save for \ buy your own car. 10% is a good increase. I love cars but they devalue. By all means spend too much money on them, many of us do, but get your priorities right, income first, pension then toys....

Also, if you are currently driving a banger then after a while maybe the bean counters will authorise a car for you (unseemly for the boss to be seen in a shi*e car etc.)

R.O.R

Spreadsheet attached - this was sent to a customer so they could try to persuade a driver not to leave for a new job with a higher salary, but no car, so won't exactly fit the OP's situation, but should help.

Require a surprisingly high allowance (or pay rise) to be in the same position as getting a new €31k Insignia.

Marcusm

R.O.R wrote: »

Spreadsheet attached - this was sent to a customer so they could try to persuade a driver not to leave for a new job with a higher salary, but no car, so won't exactly fit the OP's situation, but should help.

Require a surprisingly high allowance (or pay rise) to be in the same position as getting a new €31k Insignia.

ROR, have you taken account of the residual value of the car at Year 5?

R.O.R

Marcusm wrote: »

ROR, have you taken account of the residual value of the car at Year 5?

No. Wasn't relevant for this exercise but would be for the OP.

twin_beacon

Masala wrote: »

To be honest... Current boss does not have Company Car.. So the concept would be new to the company!!

well in that case, I would take the pay increase, as you would be the guinea pig.

Marcusm

R.O.R wrote: »

No. Wasn't relevant for this exercise but would be for the OP.

Assuming a 40% residual, I think that would print the cash allowance equivalent much closer to €10k a year.

R.O.R

Marcusm wrote: »

Assuming a 40% residual, I think that would print the cash allowance equivalent much closer to €10k a year.

40% RV on a 5 year old Insignia with 150,000km? You'd be lucky to see 20%....

Marcusm

R.O.R wrote: »

40% RV on a 5 year old Insignia with 150,000km? You'd be lucky to see 20%....

Still equivalent to a €2,400 pa reduction on the annual allowance suggested by the spreadsheet.

Masala

Marcusm wrote: »

Still equivalent to a €2,400 pa reduction on the annual allowance suggested by the spreadsheet.

eeehhhhhh??? any chance the excel could be updated??