Company car or cash allowance?

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Company car or cash allowance?

I have just started a new job that is offering a company car with a £330 monthly lease, or £385 cash allowance. Whether I take the car or the cash, I am tied in for four years.

I have four children and drive a 2003 Vauxhall Zafira. I need a seven-seater because of the children. I am quite happy to continue driving my car, but will it be economical to keep driving it for another four years? Would I be better off running the Zafira to its death, and taking the cash allowance, or taking a company car?

Asked on 25 February 2011 by Yummy Mummy

Answered by Honest John

Take the cash allowance, save it month by month in a separate account, see how the job goes. In three months you will have £1,155; in 6 months £2,310; in 9 months £3,465 to put down as a deposit on a newer or new car.

Tags: company cars buying mpvs benefit in kind tax

Dear Honest John,

Please help me choose my next car. I would like it to have:

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