Company Car Question

[Kosenurm]

Hello there,
I have just got a new job which pays a basic salary of £32k per annum, plus £5000 annual cash car allowance. I will need to get a car in order to travel to the new place of work, after a few months.

What I need to know is, how do these things usually work? I am trying to figure out, roughly, how much I will have each month (from this £5k) to spend on the car itself, insurance and petrol costs... If anyone can help me, it would be much appreciated.

I am not sure of the new company's rules on car allowances, so general advice regarding the above would also be well received.

Thanks.

[PAWS]

Re: Company Car Question

These agreements do vary so the best people to ask is the company itself. In most cases you insure the care yourself but be aware that insuring a car for work use will cost more than a regular policy and it is worth shopping around. Instead of a petrol card or reclaiming petrol as a monthly expense you will probably get paid a millage allowance.
Over all, due to the PAYE benefits, you should be better off but it is worth checking the company rules before you buy the car as some do insist the car is relatively new and naturally it must be fit for purpose.
These are just guidelines so do check with HR or your new manager. It is a perfectly reasonable question for a new employee to ask

[Kosenurm]

Re: Company Car Question

These agreements do vary so the best people to ask is the company itself. In most cases you insure the care yourself but be aware that insuring a car for work use will cost more than a regular police but it is worth shopping around. Instead of a petrol card or reclaiming petrol as a monthly expense you will probably get paid a millage allowance.
Over all, due to the PAYE benefits, you should be better off but it is worth checking the company policy before you buy the car as some do insist the car is relatively new and naturally it must be fit for purpose.
These are just guidelines so do check with HR or your new manager. It is a perfectly reasonable question for a new employee to ask

Thanks very your reply. I will email the HR department in the morning and ask them for a copy of the car policy.

[Kosenurm]

Re: Company Car Question

Hi there,
I have found out today that the benefit is paid monthly on top of normal salary, and is taxed. I am looking at the cheapest way of obtaining a small, runaround car plus insurance and petrol (doing around 2000 miles per month). Can't really afford more than £350 per month, all-in.

Any ideas?
Thanks.

[nemesis45]

Re: Company Car Question

There are plenty of car leasing deals around that are worth looking at, some under £300 per month.

nem