You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
So, the wife just got a new job that means she gets an allowance for a company car. Can anyone explain it all to me, the pros and cons.
It depends on how they do it. At work I can either have a company car (and as such get taxed on it according to the CO2 emissions) or have an allowance of £500 odd added to my wages; this is taxed, has Nat. Ins. Deducted etc.
If she'll get an allowance and is expected to provide her own car, depending on the policy, you may have to go out and buy a car, insure it etc and then recoup the cost throu the monthly payments. For example my company state it has to have four doors, seat 5 people and be less than 4 years old when you get rid of it.
It may be better to ask any specific questions you have as there will be loads I've missed! I did look into getting my own car and receive the allowance and with £500 a month (minus tax etc) I would just about break even after 4 years with a car costing about £18k so I'd have whatever I sell it for as profit. That's also based on about 25k miles a year.
Totally depends on the actual policy.
Some, like mine, have clauses that need to be met (4 doors, certain mpg, co2 limits etc) and some are just like extra cash in your pay packet with no conditions at all, someone I know doesn't even need to buy a car with it, but if not, would need to rent one if business required it.
I get a per annum amount added to my salary, on the expectation that I go wherever I'm needed. The catch is, it isn't pensionable or used for bonus calculations etc. Other than that, its cash, thats it.
I got offered £5k car allowance, or a Passat Estate Bluemotion 2.0TDI with insurance, tax, maintenance, windscreen, tyres etc are all covered (and completely hassle free - just make a phone call).
I did spend a little while trying to work out what, including the tax implications of having the Passat (about 2k a year I think) I could get on the allowance, and it wasn't as much as a Passat, plus I would have to sort out all the associated crap.
I imagine that the mileage you are doing is the key thing, I do 30k a year so no point in spending 7k a year to own something that's going to be worth only 6k in four years time.
The Passat is boring but a pleasant place to be in on the motorway.
Thanks for the help guys, she will be told tomorrow the various options.