Buying a new car - private, company car or lease hire? | Ask Honest John

Buying a new car - private, company car or lease hire?

I'm soon to be driving 500 miles a week and I need an estate. I like the Dacia Logan MCV as it's cheap and practical but I suffer from badge envy. So am looking at 308 SW, Kia Cee'd Sportswagen, Ford Focus Estate, Vauxhall Astra Sports tourer. My main concern is cost.

I think lease hire will be prohibitive due to the miles I am doing. So if I buy it will be second hand. I could get through the company, but am unsure of the tax implications. I am a higher rate tax payer (if that has a bearing on things).

So are you able to give me some guidance on whether I should go as a company car and what the costs will be (I'd pay my own petrol) and if I buy myself which is really the best estate to go for?

Asked on 2 November 2016 by fordvge

Answered by Honest John

Don't buy your own car to drive 25,000 miles a year if there is an option of a company car. Assuming there is, then you need to look at the BIK which is based on list price + extras multiplied by a figure that depends on CO2, and upped by 3% if its a diesel. So you will pay for the status of something with more status than a Logan MCV.

Tags: buying a new car

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