What's a company cage worth?

[Fordy]

I'll be lining up interviews for when we arrive at the end of September. It's likely that the jobs I'll be going for could include a company car, but I don't want one. Can anyone offer me some idea what the $ value is for a mid range company car plus fuel allowance so I can add it to any salary negotiations? Ta.

[MadDuck]

$15k a year depending on your company. Make sure if you getting an allowance for said cage that it is a tax free allowance!

[scumdog]

About me whole job if I wrap it up, according to my boss....

No idea otherwise except a few years ago it was deemed to be worth $5,000 in a salary package. (Like ten+ years ago)

[WINJA]

ARE THEY PAYING FRINGE BENEFIT TAX ON THE CAR , THIS IS A COMPLICATED ISSUE. IF THEY PAY NO FBT THEN THE CAR IS WORTH NOTHING IN THEORY, ANY ACCOUNTANTS LIKE TO CLARIFY.
MY COMPANY CAR WOULD EASILY BE WORTH $15,000 A YEAR TO ME , ESPECIALLY CAUSE I GET A FUEL CARD

[MadDuck]

ARE THEY PAYING FRINGE BENEFIT TAX ON THE CAR , THIS IS A COMPLICATED ISSUE. IF THEY PAY NO FBT THEN THE CAR IS WORTH NOTHING IN THEORY, ANY ACCOUNTANTS LIKE TO CLARIFY.
MY COMPANY CAR WOULD EASILY BE WORTH $15,000 A YEAR TO ME , ESPECIALLY CAUSE I GET A FUEL CARD

Please refer to the above Mr Winja. An accountant has responded hence the "Tax Fee Allowance" comment.

:motu:

[phantom]

I've had a company car for about 10 years and it has been quoted as being worth $15k every year since then. I think its got something to do with fringe benefit tax or tax deductability or some such. What its worth to you is something you have to decide on. Can you use it for private use , does it mean you don't need another car etc?

[Hitcher]

The AA used to run an exercise valuing cars for company purposes. I don't know if they still do.

But the real question is what is it worth to you if you get the choice between a car and cash? Running your own vehicle isn't cheap, particularly in these times of rising fuel costs. I have had them in past lives, and I reckon that a full-private-use arrangement for a company car is a great deal -- even if it is only something vanilla, like a Mondeo or Primera. No rego, no servicing costs, no gas costs, no insurance, no resale worries...

Weigh this up against buying your own car (for say $15,000), insuring it for say $500 a year, rego at $300, WOF at $40, gas at $40 a week, tyres at $300 a year, servicing at $600 year, watching it depreciate at $3,000 a year...

Although your employer may moan about FBT, remember that they are getting tax advantage by being able to depreciate the vehicle.

[Motu]

Last time I was offered a company car they reckoned it was worth 10 grand :rofl: The car and 10 grand less a year? You gotta be joking - I got a $500 Corolla to commute with and kept the money.The other manager on my site took the car - but it wasn't long before the new Mirage was replaced with a Suzuki ST90 van! :clap:

[Fordy]

Thanks for the advice.

Out of the last 15 years I have had a company car for about 10, the rest of the time I've been self employed and supplied my own vehicle. Much as I'd like to go SE now, a stint for a year or so at a NZ company will do wonders for the CV.

This is my Grand Tour, I want to explore as much as I can and go camping and fishing with the family. The company Mondea won't get very far and they may get the arse at bush dings and scrapes.

£15k was more than I'd expected, and will payback on a decent truck in just over a year. Show me da money :Punk:

[mikey]

no not 15000 pounds or euros, 15000 little nz dollars, not worth so much now eh!

[kerryg]

Thanks for the advice.

Out of the last 15 years I have had a company car for about 10, the rest of the time I've been self employed and supplied my own vehicle. Much as I'd like to go SE now, a stint for a year or so at a NZ company will do wonders for the CV.

This is my Grand Tour, I want to explore as much as I can and go camping and fishing with the family. The company Mondea won't get very far and they may get the arse at bush dings and scrapes.

£15k was more than I'd expected, and will payback on a decent truck in just over a year. Show me da money :Punk:


Depends on the car's value and whether it is owned or leased by the employer (check www.ird.govt.nz) but if you get full use of a car worth say $40,000 the employer is paying around $10,000 a year in FBT for starters, then there are all the other costs like petrol, and insurance and so on. So if you have the choice of the money or the car and decide to take the money make sure you don't take too little money. Like others said, you can attach a pretty high value to a company car 'cos although used cars are cheaper now than they used to be they also depreciate faster..so if you buy a $15000 used car and drive it for a couple of years you might get only a few grand for it if the past few years are an indication

[Blackbird]

Our company got out of cars 5 years ago and I get a monthly allowance equivalent to $19000 p.a before tax to compensate me for a 2 litre car and fuel. If I go away on company business, I grab a rental. That compensation has remained fixed but I'm certainly not complaining. It's interesting to see what the managers bought for themselves when they lost their cars. Almost none of them have a late model vehicle which is a fair commentary on what they see as value for money. I run a '97 Impreza (non-turbo) and put the rest of it into bike-related stuff!

[Hitcher]

I run a '97 Impreza (non-turbo) and put the rest of it into bike-related stuff!
A like-minded soul. Except my Sub is a '92.

[onearmedbandit]

Time to update Mr Hitcher. One of my salespeople will have something for you I'm sure. :shifty:

[Blackbird]

A like-minded soul. Except my Sub is a '92.

Closer than you think Mr H! I had a '92 Legacy Wagon until 18 months ago until I hit some diesel on a corner and wrote it off or I'd still have it :Punk: Three cars got written off in the same spot that evening!

The HX20 does me just fine apart from the kids calling me a boy racer.

[Paul in NZ]

Time to update Mr Hitcher. One of my salespeople will have something for you I'm sure. :shifty:

Pish! My 89 Starlet is up to 245,000 km and gets its ring flogged out over a 100km of open road / commuting a day with 3 adults... Cost of $47 for 500km (1 week) of commuting pleasure. (fully optioned, 2W aircon, cassette AND FM radio)

Currently jumps out of 5th so I have cunningly hooked a short bungee onto the dash to hold her in to gear. (this stylish extra is availiable on request - quite the fashion accessory)

I'll re evaluate at 250,000 but I reckon she will get to 300,000... by then Barry the bodger will no longer be able to disguise the rust (the wof guy reckons its a bloody minta though) and this little road warrior will retire with full military honours.

Total cost so far for 120,000km, 1 radiator ($300), brake master cylinder ($145) clutch master cylinder ($89) about 4 tyres and oil occasionally... EXCELLENT motorcyclist transport!

Mind you, if you can find me a similarly robust and economical device for under $2,000 I'd be keen....

Paul N

Automotive style queen

[Hitcher]

My Impreza HX1.8 has yet to turn over 84,000km. Given the bugger-all distance it travels each year, I wonder at times why I haven't rationalised the fleet and bought a small two-wheeled commuter. But then again, sometimes when it's wet and poxy outside... Maybe when Mr Kawasaki launches the ER6... Or maybe a Gilera Nexus 500... Or maybe just run the Sub into the ground...

[rfc85]

i had one in my last job when i had a family an it was worth heaps-went all over the country cost me zip now as a single man i'd take the money

[Fordy]

no not 15000 pounds or euros, 15000 little nz dollars, not worth so much now eh!

I meant $, its right next to the £ key but after a 1/2 bottle of wine and 5 bottles of wife beater I missed :drinknsin