Would you?
May 17, 2019 13:27:30 GMT
Post by Humph on May 17, 2019 13:27:30 GMT
Here's a thing. I'm not all that bothered about it, but just wanted to share a thought and see what others think.
I've mentioned before that I have a choice between taking a company car or going on to a standard mileage allowance arrangement to run my own.
Every time I've looked at it, it turns out to be marginal on costs but with the security of a company car being "not my problem" in the event of unforeseen difficulties.
However, something mildly interesting has come up.
There is a pool car up for sale at work. It's a 2012, 2.0, diesel, manual, Mondeo Zetec estate. It's been kicking around for years, initially as a reps car and then more recently as a hack.
Pretty good condition, full service history and so on, but 110,000 miles on it.
Anyway, my boss has said he'd let it go for our book value which is £2000 if it was going to an employee or friend.
That seems to be quite a good deal by comparison to similar age / mileage examples of the same model.
Now, the only reason I could be even slightly interested is that if I were to switch back to running my own car, it'd normally take a couple of years to break even on the deal if I was to buy anything half decent.
So here's some maths...
I'd gain -
45p a mile for the first 10,000 annual business miles and 25p a mile for the rest = £11,000
I'd not pay £500 a month in bik = £6000
So annually I'd gross £17000 tax free
But I'd lose -
£2000 to buy the Mondeo
Say £5400 fuel
Say £500 insurance
Say £150 tax
Say £750 tyres
Say £1000 servicing
Say £500 unforeseen repairs
So that's £10300 or so in costs leaving £6700 gross.
if I saved that £6700 in the first year and ran the Mondeo for, say two years ( don't have to buy the car in year two ) I'd have a pot of £15400 to either buy a second hand something to replace it, or use as a deposit on something more expensive if I chose.
Why would I do that?
Upside might be that I would still have a car if my employment circumstances changed. Downside might be that I'd have to spend a couple of years in a car I probably wouldn't like as much as the company one.
Would you you consider it ?
I've mentioned before that I have a choice between taking a company car or going on to a standard mileage allowance arrangement to run my own.
Every time I've looked at it, it turns out to be marginal on costs but with the security of a company car being "not my problem" in the event of unforeseen difficulties.
However, something mildly interesting has come up.
There is a pool car up for sale at work. It's a 2012, 2.0, diesel, manual, Mondeo Zetec estate. It's been kicking around for years, initially as a reps car and then more recently as a hack.
Pretty good condition, full service history and so on, but 110,000 miles on it.
Anyway, my boss has said he'd let it go for our book value which is £2000 if it was going to an employee or friend.
That seems to be quite a good deal by comparison to similar age / mileage examples of the same model.
Now, the only reason I could be even slightly interested is that if I were to switch back to running my own car, it'd normally take a couple of years to break even on the deal if I was to buy anything half decent.
So here's some maths...
I'd gain -
45p a mile for the first 10,000 annual business miles and 25p a mile for the rest = £11,000
I'd not pay £500 a month in bik = £6000
So annually I'd gross £17000 tax free
But I'd lose -
£2000 to buy the Mondeo
Say £5400 fuel
Say £500 insurance
Say £150 tax
Say £750 tyres
Say £1000 servicing
Say £500 unforeseen repairs
So that's £10300 or so in costs leaving £6700 gross.
if I saved that £6700 in the first year and ran the Mondeo for, say two years ( don't have to buy the car in year two ) I'd have a pot of £15400 to either buy a second hand something to replace it, or use as a deposit on something more expensive if I chose.
Why would I do that?
Upside might be that I would still have a car if my employment circumstances changed. Downside might be that I'd have to spend a couple of years in a car I probably wouldn't like as much as the company one.
Would you you consider it ?
