Company car

[Big Jono]

I have negotiations regarding a promotion coming up in which a company car will likely be part of the package.

My position will be that I deserve a bigger pay packet aswell as the car, I am guessing their position will be that my pay can stay the same because im getting the car.

My question is what is a company car worth usually in a annual pay packet. What value is usually applied to it? eg. $55k salary + $?k car = $ ??k yearly pay packet.

I realise this would be different depending on the use allowed so what would its value be to me in regards to my yearly renumeration package if im only allowed to use it for work or if im allowed to use it for personal use aswell.

I guess in summary my question is is this something I should just work out myself in terms of what it will save me in personal spending on transport or is there a general rule for what a company car is worth yearly.

Any help appreciated.

 

[Woodpecker Warrior]

On top of Salary, I'm provided with a car allowance and purchased my own vehicle.

Company pays for all fuel.

Unlimited private use.

Based on the above I value it at about $18,000 a year.

 

[DREAM TEAM BUFF]

Honda Accord Estate's make good Company Car's in my opinion.

 

[Big Jono]

Cheers guys!

 

[Caesar]

I would get a quote for a novated lease on the same kind of car that you're going to be provided with, and work out the equivalent value based on the estimated annual costs.

Don't forget that a company car is essentially tax-free remuneration.

 

[11sjw]

Online lease calculators are a good starting point to establish costings if they allow you to choose the fully maintained option.

Our company tried taking me down the Vehicle Allowance option instead of a car (I have a car nominated in my letter of employment). Avoid this if you can as the allowances are generally stingy. Anything <$20k and you're being screwed (based on a $50k car), I had my accountant do up a spreadsheet based on 4 & 5 year lease terms and at $18k/yr I was out of pocket approx $5k per year based on a new Ford G6 with a few extras on it (boot liner, DVD player). The allowances don't factor depreciation in at all and you carry all the risk associated with operating a vehicle.

 

[Off Tap]

I'm in recruitment and we put a minimum value of $14,000 on it when determining the fees for perm placements.