Hi Guy

I'm after some advice if possible.

I currently have a company car which is all sorted by the firm I work for and fuel is paid with a fuel card plus my private fuel is covered, however I have been offered another job but the owner wants me to lease my own car.

This is totally new to me and don't really understand how it works.

I'm looking at a new VRS worth around £28k and will be doing around 130k/year mileage.

Does the company put extra in my wage to cover the lease? What about fuel, tyres and insurance?

And where is a good place to get a quote on line?

Sorry for the noob questions, I've always just had company cars and never had to look into this.

Thanks

I doubt any company would look favourably on that sort of mileage. You're in effect writing off a car every year!

I wouldnt want that hassle myself unless the company are set to pay you a ridiculous sum to cover your costs for the lease.

Id be inclined myself to say either you provide the car or stick the job :-)

If that's not a typo and you really are expected to do more than a hundred thousand miles a year then don't do that in your own car.

It's totally unreasonable for an employer to try and get out of providing a car for you.

Do you really mean 130,000 miles per year, because that is getting on for 600 miles every working day.  What's the job - writing a 130K test report on the car - you won't have time for anything else!

....all I would say is that if you do go down that route make sure you get it in writing that the company will reimburse you any associated personal cost for the lease vehicle (and I mean any), more pertinently if you are ever forced to leave the company (sacking/redundancy) that they will fund any associated costs for early termination of the vehicle/excess mileage....so in essence you dont end up with the car as a noose around your own neck and can just walk away from it.

I am always a little sceptical of companies that make employees fund their own leases....I always think that if a car is an instrumental part of your role (sounds to me like you are going to be spending a fair sum of your life in the car) that they should really be supplying it. I guess the only time this may not ring true is if you are technically going to be self employed and subbing to the company on a full time basis.

Edited 29 March, 201511 yr by pipsyp

There's nothing wrong with employers paying you a car allowance to run your own vehicle - that's what I've had for the last twelve years though I could opt back in and have a company car if I wanted.

It's then up to you how you source that car, whether that's a lease, PCP or normal purchase.

What is important is that the amount they offer you is fair and reasonable to cover the expected costs of running a suitable vehicle. Some employers are fine with this - others aren't, and if they are going to try and shaft you on a car, are they going to treat you well in other areas.

Wow sorry sorry, 130k in three years, heavy night last night. Roughly 40 - 45k/ year

There's nothing wrong with employers paying you a car allowance to run your own vehicle - that's what I've had for the last twelve years though I could opt back in and have a company car if I wanted.

It's then up to you how you source that car, whether that's a lease, PCP or normal purchase.

What is important is that the amount they offer you is fair and reasonable to cover the expected costs of running a suitable vehicle. Some employers are fine with this - others aren't, and if they are going to try and shaft you on a car, are they going to treat you well in other areas.

Not suggesting that for a minute Zoidberg, I also take a car allowance in place of a car though in this case it does sound rather like there is no option of a company vehicle on the table and is an entirely "provide your own" situation.

Given the OP is likely to cover 130k miles a year which I wouldnt fancy at all for any job, it smells to me as if the employer is suggesting this as they dont want to be personally liable for what could amount to be a v pricey lease/car purchased per year they will have to write off.

If I were doing anything that sort of mileage not in a million years would I supply my own vehicle. In v recent times due to a change of circumstances my annual mileage has increased from about 11k/year to perhaps 25/30k year (which is heavy for me) and am now stuck in a 10k/year PCP which is annoying.

Speak to John Crombie at IVL Leasing, he supplied all our lease cars where I used to work, for a Skoda Octavia VRS, including service contract you will be looking at £600 a month + VAT, then you have to insure it and fuel it, your potential employer should cover the costs in your salary.

 

 Remember you can't claim the VAT back but if your employer leases the car they can but then would have to pay an NI contribution.

 

 

 It really is a minefield but you need to tread carefully, leave the job after 18 months and you have a car to pay for, go over the stated miles and you have to pay for each one.

I've got mine with http://www.fleetsauce.co.uk/ have been very easy to deal with, got a Octavia Elegance estate, 35K per year, including servicing, tyres, £560/month inc VAT

Thanks for the info guys. I've gone back to them and requested that they supply the car. Should be a lot easier.

I've got mine with http://www.fleetsauce.co.uk/ have been very easy to deal with, got a Octavia Elegance estate, 35K per year, including servicing, tyres, £560/month inc VAT

FMS, I don't pay that for a house ! 

FMS, I don't pay that for a house !

Fair play its a big mileage allowance but +1 thats a shed load of cash monthly to commit to on a Elegance lease.

Fair play its a big mileage allowance but +1 thats a shed load of cash monthly to commit to on a Elegance lease.

You could buy one outright for that sort of cash over 4 yrs and even with high mileage any residual value would then be a cashback bonus!

Fair play its a big mileage allowance but +1 thats a shed load of cash monthly to commit to on a Elegance lease.

If I were leasing a VRS would it be better?

You could buy one outright for that sort of cash over 4 yrs and even with high mileage any residual value would then be a cashback bonus!

Yes, but company will only sanction lease deals with maintenance, as they have been caught out before.

Yes, but company will only sanction lease deals with maintenance, as they have been caught out before.

That's why I opted out, took the cash and bought my own. Not paying any more per month than I was on previous company car (opt out cash plus saving on company car tax) and I'm raking in a shed load of mileage allowance relief (approx 10k business miles per year) so will be able to pay off loan earlier than planned.

Edited 29 March, 201511 yr by Matt Pez

That's why I opted out, took the cash and bought my own. Not paying any more per month than I was on previous company car (opt out cash plus saving on company car tax) and I'm raking in a shed load of mileage allowance relief (approx 10k business miles per year) so will be able to pay off loan earlier than planned.

10k x 0.45 = £4500, 25k x 0.25 = £6250 total £10750

 

£560 x 12 = £6720

 

I think I did the maths before signing

Well I decided that it is not going to work out leasing the car myself and the company have now offered me a car with a budget of £28k, happy days.

Thanks for all the advice.

For some it doesn't work out, I did the numbers on a like for like and had approx £100 per month shortfall.

Glad it worked out for you.

Well I decided that it is not going to work out leasing the car myself and the company have now offered me a car with a budget of £28k, happy days.

Thanks for all the advice.

Don't forget BIK on that though..