I had an interview yesterday for a new job; it sounds rather promising. Slightly oddly they have a mandatory company car for this position - no own-car allowance available, it seems.

Is there a general rule of thumb that relates salary to max cost of company car? Or is it not that simple? I'm just trying to get an idea of what they might saddle me with...

Ta muchly in advance.

Usually, you'll be given a set list of cars you can have IME...

You will normally get a car associated with your job role.

Welcome to the world of company car ownership (well hopefully), you get to thrash the **** out of someone else’s car and not pay for it; it really is as good as it sounds!!!!!

The only draw backs being you get **** raped by the tax man but overall its much cheaper!

if its anything like my employer, then one manufacturer (Vauxhall in our case) and the car will depend on the role you are employed for. Essential users get Corsas, and management get Vectras. However we can upgrade at our cost, and also opt out all together.

Dont forget the car will also be subject to income tax, typically this works out approximatly what you would be paying per month had you purchased the car yourself.

I dont get a car with my position though.

Ta.

The car park had all sorts in it so either most people aren't on the scheme or there's a wide choice. I was just wondering if there was a way of predicting how nice a choice one would get from the salary. I think I worked out that the tax is such that it's just about worth having, but the reduced hassle makes it very worthwhile.

if its anything like my employer, then one manufacturer (Vauxhall in our case) and the car will depend on the role you are employed for. Essential users get Corsas, and management get Vectras. However we can upgrade at our cost, and also opt out all together.

Dont forget the car will also be subject to income tax, typically this works out approximatly what you would be paying per month had you purchased the car yourself.

I dont get a car with my position though.

the tax will be far less than the cost that you would pay per month if you purchased the car yourself. i'm currently starting a new job and get a BMW 320D Msport costing me £93 a month in tax i am just shy of the 40% bracket which would push it up to £186 a month so it can work out a lot cheaper if you choose the right car

more employers are ditching car allowance and moving back to full company cars due to corp manslaughter rules.

if they put you in a fully maintained lease car the onus of mechanical integrity falls to the lease co. if you are on car allowance and you fail to maintain your vehicle the onus of responsibility falls to the company not you (oddly) as they have asked/instructed you to use the vehicle.

Ah - that makes sense. I suppose also it means they know you're not turning up on a customer's site in a rustbucket or something which suggests you're making too much money out of them.

Ta.

The car park had all sorts in it so either most people aren't on the scheme or there's a wide choice. I was just wondering if there was a way of predicting how nice a choice one would get from the salary. I think I worked out that the tax is such that it's just about worth having, but the reduced hassle makes it very worthwhile.

I'd have maybe asked that at the interview / salary negotiation stage after all it forms part of your package. Just watch for your no claims discount since you may no longer be contributing to the insurance companies profits

Ah - that makes sense. I suppose also it means they know you're not turning up on a customer's site in a rustbucket or something which suggests you're making too much money out of them.

A company I used to work for had a ban on Jags, Beemers, Mercs and other 'extravagant' cars but not Audis :confused:

I'd have maybe asked that at the interview / salary negotiation stage after all it forms part of your package. Just watch for your no claims discount since you may no longer be contributing to the insurance companies profits

Second interview next week - I will ask then - I have a good idea of the total package value, but the details will be given then. If, of course, they still like me.

I think I'd quite like an Octavia. Whatever it is it "needs" to be an estate.

A company I used to work for had a ban on Jags, Beemers, Mercs and other 'extravagant' cars but not Audis :confused:

my currently company has a ban on impreza's & evo's and thats it!

Also worth finding out if the company buys or leases their company vehicles.

You can often work this one out easily in the car park. If the number plates all have dealers names on them they're bought. If they say things like "leaseplan", "inscape" and "RBS lease" etc. then they're leased.

If the company buys its cars you may be able to get someone elses cast off to effectivly get yourself an upgrade. Be warned however that the company car tax will be based on the new value of the car and not the second hand value.

Make sure your new salary covers the company car tax. You want to be looking at around £2500 extra on your salary each year in order to not notice that you're paying co. car tax.

The salary rise would be quite a chunk more than that, and at the moment my train season ticket is over £3k a year, so I think I'd end up quite a bit better off. I'll see what I can find out next week - thanks again everyone.

Another thing to note is that some company's will allow you something up to a certain monthy lease value rather than giving a list price limit.

Lease price doesn't aways follow list price too closely, as retention values, service interval, cost of servicing etc come into it.

Check whether the car is fully expensed - ie fuel for to and from a regular place of work and private motoring as well as business miles. You will pay tax if this is the case, but probaby worth having if its on offer and you do a reasonabe amount of private miles.

As others have mentioned, there is aways the possibility you will get something dumped on you when you start - either a leased or purchased car - if someone has recently left the company.

Ta - these are all good things for me to check next week.

Hi Sporky

My company operates on lease value, we have a benchmark car (BMW318d SE 4 door) and you can choose any car which can be leased for the same amount or less. Here it si not the list price that matters but the magical world of discounts and residuals. Colleagues have recently ordered top spec 2.2 diesel Citroen C5 with sat nav and leather, high spec Outlander and a 1.8 A4 S line. A request for a top end Mondeo was rejected as too dear.

I never quite get all the moaning over car tax....show me where elese I could buy, service, insure, tax and put new tyres on a £23000 car for around £170/month!!! (and that's for a 40% tax payer)

One final thing (IMHO!)...don't ask too much about the car at interview, it can put employers off. The other thing to remember is that if you're new to a company you will often be landed with a pool car (ie a car belonging to someone that's left and is still under lease) and will have to run that to the end of its lease, this is fairly common practice.

Good Luck

Dan

Edited 3 August, 200817 yr by dan123

My companies stipulations were something suitable, not a convertible or saloon, diesel and £300.00 + Vat per month or under on a 25k per year plan. My Leon is £306.00 so it took a little bit of negotiation My last Octavia 1.9 TDi Elegance Combi was around £275.00 per month.

One final thing (IMHO!)...don't ask too much about the car at interview, it can put employers off.

Aye - I wasn't going to labour/push it, but from what the recruiter has said I think they'll be making the offer/negotiating at the second interview unless I stuff up spectacularly, so it can't hurt to ask roughly what sort of thing it'd be likely to be.

Thanks again for all the advice and help.

Right. The car is a Toyota Avensis saloon, in a fairly high trim (standard satnav suggests a T3 or TR?). Not sure if it's the 2.0 or the 2.2. Fully expensed. A bit dull but it'd do the job - shame I can't have an estate.

My lot give a choice of car or allowance, and you get to pick from a fairly broad list. I've stuck with an allowance, as it just about works out cheaper for me, although it's a narrow thing, involving lots of tax leaflets and spreadsheets.

Phil