Giving up company car

scon2o1o

Hey all,

I have the choice to keep or give up a company car. Car is a 221 Audi A4, OMV of €48,960. I do 0 business mileage due to a change in roles and car is in category C for emissions so notional pay is €1,224 (€974 this year and next with the temporary relief). If my maths are correct it's a true cost of about €450 per month (nearly €600 when the relief ends).

Company have told me I can give it up if I wish as the lease if over in February and if I do they'll give me a raise of €5k. Is it just me or does €5k sound like not near enough? Surely financing and running a like-for-like car would cost more than what the take-home pay of €5k would be? I know I won't have BIK any more but I can't help but feel like it's a low-ball offer. Any thoughts?

893bet

keep the car if you have a choice,

vandriver

I think a 20 grand increase would be nearer the mark!

blackbox

The car is costing your company a lot more than 5k per annum. I presume they are paying for insurance and fuel. Maintenance is probably covered in lease.

Have you tried negotiating?

Buddy Bubs

You will have income tax (which is the same in effect as BIK) on the 5k too....so you'll really only take home half of that 5k increase to cover your motoring expenses. You'll probably lose a diesel card too

So you'll have 200 euro a month to pay for a car, diesel, tax, insurance, servicing.

You'll be at a loss for sure. You'd need closer to 1000 in take home pay than 500. So the poster above saying 20k increase needed wouldn't be far off

Anyone I've ever heard of giving up a company car had the option to buy their own car and charge the company mileage expenses to help pay for it, the problem here is you don't do business miles any more.

scon2o1o

https://www.boards.ie/discussion/comment/122681902#Comment_122681902

They pay for tax, insurance, servicing, etc., but not fuel or tolls.

No, haven't negotiated yet as I just received the offer today but I definitely will.

Forgot to mention in the original post that they also said they would be willing to go into a new lease for a newer model if I wanted it. Seems like the better option, right?

drunkmonkey

Get an eqe and avail of all the discounts like low mileage etc.

Gavlor

https://www.boards.ie/discussion/comment/122681918#Comment_122681918

go electric with the new lease and you’ll pay substantially less BIK until at least 2027.

drunkmonkey

You need to look at it like..

Cost of car in after tax money.

Running costs, insurance, servicing etc

And what a lot of people don't factor in when choosing to have their own car vs a company car is deprecation.

If you don't need any car well then get rid of it but if you still need a car and factor in all the costs a company car is the way to go.

scon2o1o

I know the savings in terms of BIK are huge, I'm just not sold on EVs. Don't like them

Buddy Bubs

https://www.boards.ie/discussion/comment/122684734#Comment_122684734

I got myself a company EV primarily for the BIK free motoring and ended up buying a 2nd one personally

There's no BIK on anything up to 45k and even on a 60k car you'd be paying very little.

If it's an option you should look at it