Thread: Where do we stand on returning new car?!

Hi

My partner bought a new festa on HP in July of this year over a 4 year period, he has just been offered a company car.

We need to cut down on our outgoings and only bought the car because he needed it for work.

Where do we stand, what are our options.

Thanks

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Indeed it may be worth considering the option of refusing the company car...it may actually cost less this way.

End of July was the first payment plus an admin fee, it was a finance deal so he didn't put down a deposit.

We thought about keeping the car and choosing the 40p per mile but it's a 2litre sport fiesta and is expensive to run just to and from the office, to cover the miles that this company want him to do now is not worth the agro that these miles do to a car and company cars live on average 3 years which means we'd still have another year on the finance deal to pay once it's been killed from being driven to death.

I'd already resigned myself to the fact that we would have to pay something off. I'll follow your advice AJ and get a current value and a settlement from HP.

Thanks guys

Thanks ray.

I completely forgot about car allowances and the cheaper rate of mileage rate.

Thanks will give that a go.

Originally Posted by raydetinu

dont forget thst you will be taxed for the use of a company car so it will not be free!

Very true

Some companies give you an allowance for providing your own car in lieu of a company car, usually about 4k a year ( which will pay the HP )

Which is also taxed as income

, but then you dont get the 40p/mile just a petrol/ oil allowance. worth checking if this an optoion.

Yes you do. The 40/25 p per mile is for own car business use - it does not apply to company supplied vehicles.

For example. My company pays me £360/month car allowance and 15p/mile for usage.

The £360 is lumped with gross salary and taxed. I claim the 15p/mile and then claim the difference between that and the tax rates (40p/mile first 10,000 miles, 25p/mile thereafter) as a tax allowance at the end of the tax year.

Be aware that if you work in local government, there is a totally different arrange in place with HMRC.

Also, don't forget that you will need Class 1b (business use) motor insurance, not just SDP and commuting.

Thanks Pat

Noted.