New company car choices...

[A-AvantGarde]

It's that time for me, after changing jobs last year, it's come to the time where I get to choose my car rather than a hand me down from the pool.

I want an automatic and I've narrowed down my choice so I'll only list those rather than all the choices.

It was going to be a choice between two cars, however our list was updated today and it's made things trickier for me...

I had narrowed it down to:

Audi A6 SE 2.0 TDI Multitronic
BMW 520d SE Auto

However t oday they've added:

Mercedes E220 CDI Executive SE Auto

I was pretty much set on the 520d and I have a 4 day test drive scheduled in the Audi in just under two weeks time. Up until this week the only Mercs I could choose were an E220 CDI Classic Manual and a C200 Elegance Auto.

Now I know the W211 is due to be replaced imminentlyn (in fact I assumed that they would have ceased production). However, our company lease cars are for a 4 year term. In that time both the 5 series & the A6 are likely to have been replaced anyway.

Our company pay for Navigation, Bluetooth & Metallic, I can then have up to £1500 worth of extras. We can't specify privacy glass or upgraded alloys, other than that I can add almost anything.

I would like Xenons & Heated seats as a minimum (don't think Xenons are available on the E Class Executive.

Opting out isn't viable for me as I do about 25k miles pa about 18k of that is business.

Anyone have any experience of any of these models? I was almost certain I would be placing an order for the 520d the Merc has changed things a little spoiling me for choice if you like...

 

[flango]

No brainer for a company car particularly if you are a 40% rate tax payer paying the company car tax, as much as I hate to say it the beemer is by far the better car in every respect. 2.0 Audi engine is too weedy coupled to the auto box. E220 also suffers the same problem but not as bad. Beemer wins on all counts not normally a BMW fan but the 5 series is a seriously good car.

 

[Dieselman]

Opting out isn't viable for me as I do about 25k miles pa about 18k of that is business.

I'd disagree with that statement depending on the rate you are paid, the age the car is allowed to be and your taxation situation.
Of course you might not want the risk and hassle and at the end of the day it is your choice.

Out of the cars you have listed which would I go for, either the BMW or Mercedes. In my opinion they are a cut above the Audi.

 

[A210AMG]

Have to say the BMW 2.0d engine is superb and would make a good choice.

All are nice cars made worse when you have a choice. If they just said right everyone on x band has a x then sorted.

I would go for the estate if your allowed but thats what I would have.

Best to drive them and see what you think.

 

[timskemp]

Biased choice here but the E has it. Better comfort than the other two and as you'll get nav you'll get comand 2.5. ISTR exec spec has leather. Current 220 has 170bhp as well.

 

[Dieselman]

No brainer for a company car particularly if you are a 40% rate tax payer paying the company car tax, as much as I hate to say it the beemer is by far the better car in every respect.

The Co2 rating for the Beemer is 149 and the Merc 177 so you are correct.

Interestingly one of my collegues has changed to a 520d and is averaging 58mpg. Not sure if it's a manual or auto though.

The average of 149g/km gives an average of 50.8mpg. pretty good.

 

[stevesey]

Opting out isn't viable for me as I do about 25k miles pa about 18k of that is business.

I'd disagree with that statement depending on the rate you are paid, the age the car is allowed to be and your taxation situation.

Have to agree (with DM's disagreement) - that mileage breakdown almost is exactly the same as mine. Expenses and opt-out allowance cover all the costs on my car (inc tax/insurance) with more than a little left over (with that I could afford the depreciation on a much newer car, but don't see the need for it). Combined with no tax to pay on a compnay car that's a decent difference. Does require a little work on my part as that's 4 oil changes and a set of tyres a year - so you have to keep on top of the maintenance (but being as it's making money and needs to be 100% available I don't skimp on the costs).

 

[flango]

The Co2 rating for the Beemer is 149 and the Merc 177 so you are correct.

Interestingly one of my collegues has changed to a 520d and is averaging 58mpg. Not sure if it's a manual or auto though.

The average of 149g/km gives an average of 50.8mpg. pretty good.

My next door neighbor has had a 520d M sport 18 month average mpg is running at 54.7 they are really phenomenal on fuel his is a manual though.

By far the cheaper option on tax

 

[verytalldave]

Get a sunroof as an extra. It really does add an extra dimension to the driving experience.

 

[flango]

I'd disagree with that statement depending on the rate you are paid, the age the car is allowed to be and your taxation situation.
Of course you might not want the risk and hassle and at the end of the day it is your choice.

Out of the cars you have listed which would I go for, either the BMW or Mercedes. In my opinion they are a cut above the Audi.

Been there and done it, at 25k annum opting out is not an option and would cost you based on the car choice above, company car the cheaper and safer bet by far. 12k and under then opt out would be an option.

 

[A-AvantGarde]

I've tried a couple of online cash or car type comparison sites and it doesn't seem to work in my favour to opt out.

I'm a 40% tax rate payer and our company only pay 13p / mile for business miles. Furthermore, with respect to the car I take on it shouldn't exceed 4 years old or 100k miles on the time I have it.

At first I was keen to take the cash allowance and run something a bit nicer (or higher spec ;-) ) however the figures don't stack up. Even playing around with lease deals & maintenance it doesn't seem to work to make opting out more attractive for me. I guess that after having company cars for over 7 years I guess I've got used to having that stress free total cover.

I guess if I took the cash and ran a cheaper car, diesel Golf / Focus etc. it may work well but I don't really want to do that.

 

[A-AvantGarde]

My next door neighbor has had a 520d M sport 18 month average mpg is running at 54.7 they are really phenomenal on fuel his is a manual though.

By far the cheaper option on tax

Had a 520d Sport as a demo for a couple of days last week. Nice car unfortunatley can't stretch to a Sport but the 177 hp diesel engine with the auto box is a nice combination.

It's quiet and refined on the move and has enough poke. The trip computer on the demo (which had about 2.5k on it) was showing an average of 46 mpg so I guess it must have been hammered by previous testers!

 

[stevesey]

Been there and done it, at 25k annum opting out is not an option and would cost you based on the car choice above, company car the cheaper and safer bet by far. 12k and under then opt out would be an option.

Whilst disagreeing that opt-out isn't and option (becuase aa said above I'm doing it) I'd agree that 12K is probably the break-even point. Just tried 12K purchase price in my detailed spreadsheet of car costs and that wipes out the profit margin.

But 12K buys you come nice cars - should be able to get an 05 E320CDI Avantgarde for that or something earlier/smaller with lower miles (given that they will pile up quite quick).

 

[stevesey]

I'm a 40% tax rate payer and our company only pay 13p / mile for business miles. Furthermore, with respect to the car I take on it shouldn't exceed 4 years old or 100k miles on the time I have it.

Who do you work for Scrouge inc (although that depends what the opt out allowance is). Even the tax man would consider that tight - if you get paid less that the 40p tax threshold it is possible to get tax relief on your petrol/maintenace costs (I was discussing this with a collegue on Monday who manged to additional tax relief whilst using his car at 25p - amazing this was the tax man pointed this out to him).

The 4 year/100K rules are a bit outdated these days - I've never owned a car that young, over the past 15 years my last 4 cars have gone well over 100K and covered regular communtes to Cardiff, Bournemouth and Swindon and I've never been late because of car failure. OK there's the image thing - but on that front I think a 5 year old w211 rates above a (more expensive) 1 year old Mondeo.

 

[Dieselman]

I've tried a couple of online cash or car type comparison sites and it doesn't seem to work in my favour to opt out.

I'm a 40% tax rate payer and our company only pay 13p / mile for business miles. Furthermore, with respect to the car I take on it shouldn't exceed 4 years old or 100k miles on the time I have it.

Have you accounted for how much salary uplift they will give you for not taking car option.?

A quick mash up of figures with the car value at £34k, monthly uplift of £500, mileage paid at 13p, private use fuel recharge £40, insurance at £500, maintenance at £1500, depreciation at £5000, diesel at £1 and mpg at 40 gives a £477 annual credit for the BMW or £1157 for the Merc.

 

[dino645]

I'd go for the Merc. A close friend of mine used to say if it is under 2.5l don't even bother when it comes to BM's, and I agree.

525 is a minimum, so I'd go for the MBZ

 

[Bobby Dazzler]

520d is very popular amongst company car drivers within the organisation I work for - smart but subtle, enough pace but frugal, and low CO2. Not surprising really.

 

[Dieselman]

No brainer for a company car particularly if you are a 40% rate tax payer paying the company car tax,

I'm confused by this statement. If you mean opt for the company car and pay the tax, surely it is worse for a 40% tax payer than a 20% one.

 

[flango]

Whilst disagreeing that opt-out isn't and option (becuase aa said above I'm doing it) I'd agree that 12K is probably the break-even point. Just tried 12K purchase price in my detailed spreadsheet of car costs and that wipes out the profit margin.

But 12K buys you come nice cars - should be able to get an 05 E320CDI Avantgarde for that or something earlier/smaller with lower miles (given that they will pile up quite quick).

Sorry I meant 12k as 12,00o miles per year not value, I used to do 40,000 + as a company car driver eventually dropping down to 20,000 but opt out still doesn't work anything above 12,000 comapny car has to be the preferred option.

 

[flango]

I'm confused by this statement. If you mean opt for the company car and pay the tax, surely it is worse for a 40% tax payer than a 20% one.

Yes you are quite correct I just meant that at 40% tax the Audi and MB make the situation worse and the tax burden is a lot greater due to higher emissions and purchase price. At 20% the difference is not so great