company car - whats its worth

tolzero · 29-05-2008, 11:03 AM

I am going into the negotiation stage with a new employer and they are asking about sweeteners to the package, they are talking about a company car, fuel card, insurance etc etc and a mobile phone. I am in sydney and just would like ideas about what this package is worth so I can go into the meeting with some various ideas.

It will be a Mercedes Vito, the only problem is I was thinking about trading in my ute for a more family type car and i don't really want to go away on holidays in the future in a Vito I would rather have a Ford so i can be in style

any ideas are welcome

regards

Ringo · 29-05-2008, 11:16 AM

A fully maintained company car can be worth anything from $12k per year up for a basic model with average kms.

What sort of car are you thinking of?
How far will you be driving it?
How long will you have it? 2 years? 3 years?.....more?

tex · 29-05-2008, 11:35 AM

Quote:

Originally Posted by Ringo

A fully maintained company car can be worth anything from $12k per year up for a basic model with average kms.

What sort of car are you thinking of?
How far will you be driving it?
How long will you have it? 2 years? 3 years?.....more?

12k????????????????????????????

A $40 thou brand new 'family car' packaged up will be in the order of low 20's per annum fully fuelled and maintained.

bingoTE50 · 29-05-2008, 04:12 PM

My car allowance is 19200.00 plus fuel card . I cover all outgoings other than fuel.

**PHATAL** · 29-05-2008, 04:18 PM

Do you get it for personal use? I have a company car but can only use it to and from work.

4Vman · 29-05-2008, 04:22 PM

Id say a base model fully maintained vehicle with petrol averaging about 30,000k's pa is worth about 22K per year...
That's what its averaged for me..

JG66ME · 29-05-2008, 04:26 PM

Quote:

Originally Posted by tex

12k????????????????????????????

A $40 thou brand new 'family car' packaged up will be in the order of low 20's per annum fully fuelled and maintained.

Quite correct.

I get a $37k FBTvalue allowance on car purchace. I drive 40km per annum. So I always get a XR6 ute optioned to about $40k retail. If I was to pay for this as a lease it would be about 22k a year for car, fuel, reg, insurance, 1 set of tyres and service costs.

So a 40k car is about 22k a year, a 45k car is about 24k a year.

Of course, each time fuel goes up you get an instant pay rise to match so its good value.

I have done a lot of research on this but my numbers are based on $1.20 per litre so its gone up.

Steve

JG66ME · 29-05-2008, 04:28 PM

Quote:

Originally Posted by 4Vman

Id say a base model fully maintained vehicle with petrol averaging about 30,000k's pa is worth about 22K per year...
That's what its averaged for me..

That echos what I have found.

Ringo · 30-05-2008, 08:40 AM

Groan......$12 for basic model with average kms gents!

You all talking about $40k+ optioned up things. Thats not average.....

JG66ME · 30-05-2008, 12:56 PM

Quote:

Originally Posted by Ringo

Groan......$12 for basic model with average kms gents!

You all talking about $40k+ optioned up things. Thats not average.....

Ford Falcon XT is a basic fleet car in Australia.. FBT value around 35k. Full cost is about 21k per annum. That includes about 6k worth of fuel for the year, 40,000km at 10l per 100km.

At the end of the day its what its worth to you. A car is not worth a cracker if you walk to work.

WizBang · 30-05-2008, 11:02 PM

I have take home work car which is worth around 6 grand a year and I have to pay nothing apart from wash it and even that I'm claiming on tax these days .

ZA-289 · 31-05-2008, 08:26 AM

If your not gonna like driving it dont get it, I have a work ute and its a piece of junk, I hate driving it, therefore I dont, its pointless.

devilcv8 · 31-05-2008, 01:36 PM

Quote:

Originally Posted by JG66ME

Ford Falcon XT is a basic fleet car in Australia.. FBT value around 35k. Full cost is about 21k per annum.

Unless you work for telstra, then you can get a full private use XT falcon for about 14k pre tax per annum. No more to pay, no restrictions on distance etc. increase the outlay to around 18-19k and you'll get a XR6T.
The last 2 cars I had were an SV6 at 15k per year and a SSV at 22k per year. did 172,000km in the SV6 over 2 years and used more in fuel, tyres, servicing than I paid for the car. best value ever. Only had the SSV for 4 months before I changed jobs, but put 23000km on it, including a return trip to Adelaide just for the hell of it.

JG66ME · 31-05-2008, 03:31 PM

Quote:

Originally Posted by devilcv8

Unless you work for telstra, then you can get a full private use XT falcon for about 14k pre tax per annum. No more to pay, no restrictions on distance etc. increase the outlay to around 18-19k and you'll get a XR6T.
The last 2 cars I had were an SV6 at 15k per year and a SSV at 22k per year. did 172,000km in the SV6 over 2 years and used more in fuel, tyres, servicing than I paid for the car. best value ever. Only had the SSV for 4 months before I changed jobs, but put 23000km on it, including a return trip to Adelaide just for the hell of it.

Numbers I quoted are for a private use company car thats part of your package. Did your 15k include fuel? Typicaly a Falcons leas costs is 900 to 1200 per month. Say 12 k per year.

Steve

full house · 02-06-2008, 10:28 PM

Having a ford would feel you better, but I think it would cost much . . . rather think of alternative for that!

devilcv8 · 03-06-2008, 07:18 PM

Quote:

Originally Posted by JG66ME

Numbers I quoted are for a private use company car thats part of your package.

I understand that, but a lot of people get novated and operating leases mixed up. If your employer does an operating lease, as Telstra does, then it is madness to do anything else.

Quote:

Did your 15k include fuel? Typicaly a Falcons leas costs is 900 to 1200 per month. Say 12 k per year.

Steve

That 15k ( actualy it was 15,710 per annum) included all fuel, tyres, services, repairs, accident damage etc.
In my case with the 172,000km (110,000 in year one) I had 3 windscreens fitted, 3 minor accidents (family hit wombats/kangaroos and son sideswipped an armco barrier while avoiding a kangaroo) 5 sets of tyres etc and I did not pay one cent more than the operating lease cost. Basically Telstra fleet made a loss on the car.

ABoringUsername · 03-06-2008, 08:49 PM

The rules are different for a Van as opposed to a car. A van is a commercial vehicle. We have people at work who commute in their vans and don't have to pay FBT because it is a commercial vehicle. the people who have cars do have to. An accountant can confirm this, don't take my word.

Cooper69S · 12-06-2008, 01:17 AM

another point is that a lot of the suggestions about the value of a company car sort of assume that you'd otherwise be paying that cost yourself.
Most people I know with company cars wouldn't have bought one of those same cars had it not been provided, so you can't necessarily consider it to be saving you $20k (or whatever amount its worth) per year.
The real value of a company car is going to be different for every person. Its got less to do with the price of the car you're offered than the value of the car you would otherwise have been driving, and the fuel you would otherwise have been buying. So best do your sums and work out based on the km's that you do how much you'll be saving...

drew`SEVNT5 · 12-06-2008, 01:35 AM

im doing 1,500kms a week, on the toll roads all day...

Wonder how much im costing the company?

JG66ME · 12-06-2008, 04:06 PM

Quote:

Originally Posted by devilcv8

I understand that, but a lot of people get novated and operating leases mixed up. If your employer does an operating lease, as Telstra does, then it is madness to do anything else.

That 15k ( actualy it was 15,710 per annum) included all fuel, tyres, services, repairs, accident damage etc.
In my case with the 172,000km (110,000 in year one) I had 3 windscreens fitted, 3 minor accidents (family hit wombats/kangaroos and son sideswipped an armco barrier while avoiding a kangaroo) 5 sets of tyres etc and I did not pay one cent more than the operating lease cost. Basically Telstra fleet made a loss on the car.

That was a good deal. People seem to only include the value of the car. The quotes I had for a car about 38k purchase price was about 12k a year lease cost for 3 years. 7k a year fuel. Rego, insurance, service costs and one set of tyres per year. Add the FBT tax and it came to about 21500 to 22k, I cannot remember exactly. This would of been paid with pre tax dollars. To let go my company car the company was going to give me 22k a year more to compensate.

For the record, with the price of fuel going the way it, is I am glad I stuck with a company car.

Steve

devilcv8 · 12-06-2008, 06:08 PM

Quote:

Originally Posted by JG66ME

For the record, with the price of fuel going the way it, is I am glad I stuck with a company car.

Steve

That is my one biggest regret about leaving, having to hand the fuel cards back, and the car...... Oh well, onward and upward for better things.

JG66ME · 12-06-2008, 06:50 PM

Quote:

Originally Posted by devilcv8

That is my one biggest regret about leaving, having to hand the fuel cards back, and the car...... Oh well, onward and upward for better things.

Yes, I nearly let go the XR6 ute for a FPV GT at 30k a year. So glad I didnt. I would of been about 500 a month worse of then. At the time it seemed good value given that most I know pay 100 a week on fuel.