Reply to: Company Car - Can MyCo buy a used a car?

[SimonMac]

BMW 320d Efficient Dynamics 8.2sec 0-62mph, 140mph, 68.9mpg, 109g/km CO2, about 1,500 kg

That's pretty respectable for a 4 door saloon and as far as econoboxes go that's probably best in it's class. If you're a company car driver or you do a lot of miles then it might be an attractive option. Certainly it would thrash the hell out of the Volvo S40 with the same C02.

I think he was referring to the Volvo not the Beemer

[Wanderer]

Yikes! and in something that will weigh alot! That is horrible.

BMW 320d Efficient Dynamics 8.2sec 0-62mph, 140mph, 68.9mpg, 109g/km CO2, about 1,500 kg

That's pretty respectable for a 4 door saloon and as far as econoboxes go that's probably best in it's class. If you're a company car driver or you do a lot of miles then it might be an attractive option. Certainly it would thrash the hell out of the Volvo S40 with the same C02.

[SimonMac]

The more I think about this the more it seems like quite a good idea, looking around the net I have seen the Volvo spec'd up exactly how I want it for £20,339 down from £23,890 list. Would everything to do with the car be able to go through the books, insurance, servicing, AA Membership etc? And if so would that all be deductible against Corp Tax?

Damn you internet, I might have to finally go talk to a proper accountant rather than do everything myself

[SimonMac]

Yikes! and in something that will weigh alot! That is horrible.

The only other option for that size of car and still be under the 110g/km CO2 is the VW Pasat or Jetta (same engine) and thats even lower at only 105PS!

[northernladuk]

Powered down its still 161 BHP (down from 181 BHP) compared to the 117 BHP from the Volvo

Yikes! and in something that will weigh alot! That is horrible.

[Moscow Mule]

Definitely thinking about this for the runaround car we want to replace.

E.g. Fiesta Econetic - 98g/km CO2 76mpg - about £18k for a full shiny spec one.

I tend not to take all the money out of the company every year, so it makes a lot of sense to get this for £800 a year (or so) rather than buying a secondhand version with our own cash.

[SimonMac]

Yea but the low emissions bemmer engine has had it's power reduced as well so will be as flat a pancake.

Powered down its still 161 BHP (down from 181 BHP) compared to the 117 BHP from the Volvo

[northernladuk]

Hmmm, the price difference between similar spec Volvo S40 and 320d is £24k v £32k?! Just not enamoured over the engine in the Volvo only being a 1.6

Yea but the low emissions bemmer engine has had it's power reduced as well so will be as flat a pancake.

[SimonMac]

Very strange.

BMW UK | BMW 3 Series | New 320d EfficientDynamics Saloon

Hmmm, the price difference between similar spec Volvo S40 and 320d is £24k v £32k?! Just not enamoured over the engine in the Volvo only being a 1.6

[Pondlife]

Very strange.

BMW UK | BMW 3 Series | New 320d EfficientDynamics Saloon

[SimonMac]

It's showing as 109g/km and 100% FYA for corp tax according to the linky from Claire.

So it's a bit more than the Volvo but not that much.

I thought the 100% Cut Off was 100g/km not 110g/km.

I would double check the figures on the the 320D, as it seems the latest 3 Series has a higher CO2 rating BMW CO2 model finder : BMW 3 Series Sedan 320d

[Pondlife]

Even with the EfficientDynamics the 320d is 128g/km CO2 which will mean only being able to offset 20% against Corp Tax compared to the full 100% is you get it below the Magic 100g/km

It's showing as 109g/km and 100% FYA for corp tax according to the linky from Claire.

So it's a bit more than the Volvo but not that much.

[SimonMac]

And insurance. I'm starting to think this might be a winner.

Beamer 320d is similar figures.

Even with the EfficientDynamics the 320d is 128g/km CO2 which will mean only being able to offset 20% against Corp Tax compared to the full 100% is you get it below the Magic 100g/km

[Clare@InTouch]

So in theory with the right car it could be worth while, for example the Volvo V50 is 99g CO2 so I could write off the full value of £24k from Corp Tax, a BIK of £3,080 which on an annual salary of £15,000 will only work out about £600 a year.

Using the figures from that Auto Express Article

Keep in mind that the benefit in kind forms part of your overall income, so you'll be able to take less in dividends before you cross into higher rates. If you're usually right up to the limit and you want to take the same amount, then that's £3,000 in dividends that will then be higher rate which will result in personal tax of £750.

[Pondlife]

Plus the fact the LTD pays for all maintenance, service and tax etc.

And insurance. I'm starting to think this might be a winner.

Beamer 320d is similar figures.