2nd car - Company or Private? - Richie22
Hi All

I have a private 7 seater MPV (with 3 child seats), and a company van (business only). We are approaching the stage where we may need a second car for family logistics. I do have an option to get a company car but no choice on what it is with only a bottom end Insignia or Astra available.

My question is do we get a cheap run about and keep the van or is it worth paying the the tax etc for a company car?

Very difficult to find information on the net regarding this situation, others must have faced it.

Rich
2nd car - Company or Private? - RichardW

Do you need the van for work, or will a car do is the first question. If a car will do, then almost certainly a co car will be the 'best' option - if not the outright cheapest - even more attractive if you not a higher rate tax payer.

Should be pretty easy to work out if you can find out what car you can get; look up its list price and BIK rate (note that BIK rates are going up quite a lot in the next few years, so you need to forecast that). This will give you an annual cost. Now add up tax, MOT insurance, servicing, tyres etc for a run about - then add at least a couple of grand (1k cars are, in my experience, near scrap unless you are lucky) to buy it, and you will have 2 numbers to consider.

2nd car - Company or Private? - Richie22
Thanks for the reply. Maybe I should have given a bit more detail.

The van is company supplied with a fuel card with no option of private use. We must keep the MPV as it has 3 full size seat in the middle row for the kiddie seats. So this is the car we would use 90% of the time. The 2nd car would only be used when absolutely necessary.

I don't mind keeping the works Corsavan on my drive in the event of having a 2nd car.

Rich
2nd car - Company or Private? - Falkirk Bairn

Look up any car review/makers site & they will give you the List price for that model & engine size & they will tell you the BIK annual cost for a 20% & 40% tax payer.

Divide that by 12 and you will know how much you will pay extra in tax per month - easy!