I stand a chance of a job which comes with a company car (Passat 1.9 Tdi)
I have a 2 month old C4 Picasso with just over 2000 miles on the clock. It is a 2.0HDI Exclusive with EGS.
Having both is not possible. So, bearing in mind the permutations of tax on co' car, available for private use, no road fund license or insurance to pay, depreciation of Citroen value, laying it up for duration(?).....oh, dear me....what to do, what to do?
If I sell the Citroen, how much do I stand to lose?
What would you do?
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I'm not sure what the question is!
What would we do about the car (you said having both is not possible) or, would we take the job?
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With a car that new, selling it will involve a big hit on depreciation so a) persuade your new employer to buy your car at retail price and run it as a company car or b) keep the car with an increased salary/allowance, albeit taxable, until you got better value from it.
Laying up for the duration must be the worst option, surely.
Edited by Ruperts Trooper on 13/12/2007 at 17:53
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Laying up sounds a crazy idea. But selling the car might lose lots with it being so new.
Can you not take an allowance and use your own car?
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Lots of permutations, obviously. But before considering any of them, I'd make sure the new job works out - you may not like it & vice versa. What then if you sold or made other arrangements for the Citroen? The depreciation hit might be slightly worse if you sell in say, 6 months - but not that much worse than after 2 months. The company car sounds like it's already 'on the fleet' so no harm (only BIK tax loading) in running it for a while. Alternatively, eschew the company car if possible & claim mileage allowance for your car - some people even make a 'profit' on this (even with depreciation factored in)
Sit tight until the probationary period (either formal or informal) is over - things will be clearer then. The new employer might be more flexible or helpful in suggesting alternatives when you become indispensable to them!
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Assume you will get cash is lieu of taking the company car. Take that.
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Sell your car, put the money in an isa (or two)
Ok, you'll loose money on the depreciation but 2 or 3 years down the line you'll get some back on interest.
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Thanks for the answers, will have to think this over during Xmas period.
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Very good idea Tack
Lets face it, you are probably a bit overrun at the minute with Christmas and new jobs to think about etc?
But this is really simply a matter of getting you priorities straight and being logical.
So don?t panic.
You can easily find out what your C4 is worth ? look on the trader, in Glasses, phone/go to you dealer etc.
Then you have a few questions to ask about the new job, what flexibility there is in the package overall etc as others have suggested. Don?t be afraid to ask these questions ? it?s amazing what can be achieved if you just ask!
Once you have all the information, then decide.
But whatever you do don?t make a career decision over a company car!
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Hi Tack - Some good advice above IMO.
All I would add is that I would advise you to ignore the car element of the deal in making your final decision about the job. If the job is more attractive than your current one, with a company you want to work for and with better career prospects, then go for it.
The pleasure / advantage equation of a better or worse company car deal is a relatively short term buzz in the scheme of things. After a while all cars just become "the car".
A long time ago I remember putting off resigning from a horrible job because I liked the car ! ( Volvo 850 T5 ) The best move I eventually made at the time was to go to a better job with a "worse" car deal.
Glad I don't have those decisions to make these days !
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What sort of mileage does the new job entail? If the car is just a perk and there's an option for an allowance instead stay with the C4, you've already budgeted for it. If car use is an essential with vast mileages involved then you need to do some sums.
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I agree - see if you can negotiate an allowance rather than the car, run the C4 according to your existing budget, and bank the allowance, maybe with a bit aside for the extra maintenance costs on the C4 for the higher than planned mileage.
All being well, in 3 years time you'll have a very hefty chunk tucked away to put towards your next car.
You can also claim back tax relief from the Revenue on any business mileage conducted in your own car which is a nice little lump once a year.
Cheers
DP
--
04 Grand Scenic 1.9 dCi Dynamique
00 Mondeo 1.8TD LX
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If you are going to keep your own car and use it for business, check your insruance carefully - you may need a modified poilcy to be properly covered.
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