Cash for Car
Cash 4 car schemes.
Cash alternatives to company cars.
An ever-growing number of companies are offering their employees the option of taking a cash alternative to a company car. But what option is best for you?
How does it work?
The company offers you money if you hand back your company car and sort out your own transport. The precise amount differs significantly between companies. Some offer an annual or monthly sum, others a pence-per-mile figure. If you accept, then you no longer pay company car tax, you pay for your own car and its related expenses using the cash allowance. The cash allowance is taxed according to your taxed income band.
Should I opt out?
Choose the cash option if:
1) the cash offer is good enough
2) you want more flexibility over your choice of car
3) you want to keep the car if you leave the company
4) your company car tax bill is high
5) you cover low mileage (which makes it cheaper to acquire and run your own car.)
Choose the company car if:
1) the cash offer does’t add up,
2) you’re happy with your choice of company car and tax bill,
3) sorting out your own car is too much hassle,
4) your driving record makes insurance expensive,
5) your credit history make obtaining finance difficult,
6) you cover high mileage.