Coming out of your company car scheme
Many companies now offer their employees a cash allowance rather than a company car.
If you've had a company car for a number of years it can be daunting working out how to get the most out of your car allowance.
You'll need to consider:
- The cost of the car itself and how much value it will lose in depreciation
- Maintenance costs, such as servicing and tyres
- Fuel costs
- Road Tax
- Insurance
Many people with a cash allowance opt for a personal lease. Personal leases are usually for a fixed period of time and you can include all servicing and maintenance costs. This allows you to drive a new car on a fixed monthly budget and convenience similar to running a company car.
You should also consider looking at cars with lower fuel consumption and carbon dioxide emissions to minimise running costs.
Your employer may pay a mileage allowance which helps to cover fuel and other running costs. If your employer pays less than the Inland Revenue approved rate (currently 40p for the first 10,000 miles and 25p thereafter, based on 2008/09 tax rates) you should be able to claim the difference against your self-assessment tax which increases the contribution towards running costs.
Look for insurance providers who will take into account your previous driving record as a company car driver as this can reduce your premium.
Jane Ramsey from Vesource Vehicle Leasing says 'It's important to get the most out of your cash allowance. We offer impartial and professional advice on leasing packages to suit everyone's needs and we often find that our customers end up with a better car than they expected.'
Need more help?
We're a friendly and helpful leasing company - We take the time to find you the best leasing deals that are right for you. Why not contact us for advice on 0845 052 5268 or ask for a leasing quote?
