Got new job but they wont give me a company car,they want to give me a car allowance?
Answers:
You are stuck for the lease term. If you turn it in early, you will have to pay a penalty.
If your current car is a bomb, you need a new car anyway. Get a car that you want or can afford on your own but obviously with some reliability and do your best to keep the cost of the car less than your allowance that way you are getting a car that you can keep and for now your not paying for it.
I would take a loan out (Direct Line are very good) and buy a newly new car. If things dont' work out in your job, you can always sell it.
Negotiate the lease end term in your employment. Otherwise, get a car that is lower then the allowance and pocket the rest to pay off the lease end term if you are fired. You can also pay up front a fee to have the option to end the lease early (keep in mind this fee is very large) but only a few companies offer this, BMW, is one of them.
The lease company won't care a fig if you're paying for the car using a car allowance from your employer. If you change jobs, you're still on the hook for the lease. The lease agreement may have a clause in it about how to terminate the lease early, but I'll bet that there will be a penalty you'll have to pay to do so.
I'd say sell the bomb, buy a car, use the allowance AND your own money to pay the car off early - say in 2 years. That way if you do get fired or change jobs in a couple of years, at least the car is yours free and clear, and you won't have to make monthly payments on it. If you do stay with this company for more than 2 years, then the allowance money may be tax-free income. (But double-check that last one with a tax accountant in your area, of course)
You should be able to buy early termination insurance, your company should be able to sort it for you. Otherwise you'll be stuck with the lease.
My company currently give company cars but when I joined they did say that it I had opted out and taken an allowance from my previous employer then they would buy the car from me. So, if you move on in the future I wouldn't worry too much there are always ways around these things.
Yes, just get a new car anyway. I have to travel as part of my job, and I get a whopping 37 cents a mile. When the engine died on my old car 2 months ago, it was either get a new car or sit at home all day because I would not be able to get to work. Even though my current job pays nothing really, I would not have a job at all if I did not have a car.
And my job is a temp job too, so early next year I will need to find a new job, and yet continue to make $200 a month car payments. You gotta do what you gotta do!
trade your bomb in on a kia.they got the best bumper 2 bumper guarantee.
Buy a new car but try not to take into account the allowance you will receive. That way if you're fired you should still be able to afford the car. Also with a lease and using it as a work vehicle your sure to run up a lot of miles. They penalize when returning a leased vehicle with numerous miles on it. Some places get around $.15( I think) per mile for going over the allotted amount. That could add up to major $$$$ when turning it in.
you are lucky, company counts as earnings, and is therefore taxable if you go for a monthly rolling lease you can write it of as deductible
You pay tax on the value of a company car, which can be quite considerable. The company is certainly saving paying you an allowance, but you do get a choice how you spend it. If you're going to lease, check the agrreement very carefully. Many have unbreakable terms. Unless you're sure to keep the car, remember too that new cars lose 30% of the value as soon as you drive out of the showroom. A better option would be a used (none bomb) car that you could keep, pay for with the allowance, and want to keep if you leave the job
buy a cheap car until you can save up for a better one.
Depending on mileage you may be OK , Rentals and leases are partially ruled by this and it is overage that usually gets you into trouble. I would instead , try to negotiate with your employer to pay the federal mileage allowance instead.
if your car is a bomb , buy a fuel efficient car , and let the car allowance help pay for your new car
you will have to complete the full lease term.
Well, look at it like this: if your car is so unreliable you don't trust it to get you to work and back, flog it or trade it in and get something reliable. That's the easy part.
Does it make more sense to buy a car or lease one? It all depends on how the figures stack up.
If you buy, you have to come up with a large sum up front (so you may have to take out a loan to pay for it) or buy it on hire purchase ( another form of debt), and you also have to factor in repair costs.
Then there's depreciation to consider. Cars lose most value in the first year or so, so financially it makes the most sense to buy a car a year or so old, when someone else has taken the big depreciation hit but the car is still under warranty.
Of course you can always sell it and get some - hopefully a lot - of your money back.
If you lease, you don't have to worry about any of that, but after a certain point it costs more than just buying.
Then there's the tax situation, which could go either way: are car hire expenses tax deductible? Are car ownership expenses ditto? Different rules apply, depending what country you're in.
In short, from a financial POV, it's not clearcut: it may be that taking out a loan to buy a car outright is better for your financial health than leasing a car. If you know an accountant, ask them.
Finally, if you do take the leasing route, it depends on the terms of the lease whether you can hand it back when you want. Most leases will have a fixed length, and to hand it back early you'll have to pay a penalty or pay more in the first place for an open-ended lease.
Hope this helps.
So what.
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