Which is better? a company car with fuel card, or car allowance of 16k with fuel card?

Question

I was offered a new job and the company have two options in regards to transportation. Firstly, a fully maintained company car with fuel card or 16k allowance with fuel card. The job require me to drive from syd to canberra and back frequently and the rest of the time i would be driving around NSW and would easily do 80Km a day.

so which would be a better option for me?

Answer 1

i would go the company car, clocking up that many kms would be annoying, if you used your own car, you have tires, general wear and tear, servicing, and then your car clocks up all the kms and then makes your car depreciate a heap.

company car everything like that is covered, in the long run a company car is better.. also you will get a new one every few years!!

Answer 2

i'd say the company car because then you wouldnt be paying for the gas

Answer 3

you don't say what kind of car the company would provide.

who is responsible for the maintenance (tires, oil changes) who pays the insurance?

not familiar with what sort of taxes you'd pay on a 16K allowance.

can you get a better car for 16K than what they use for company cars?

Answer 4

It all depends what the "fully maintained company car" looks like. I suggest you simply go look at it, if you like it and it isn't beaten on, then the company car maybe a good option.

I would rather spend the 16k with the fuel card, however for my own car. 16k can find you some fairly good used, and some alright new cars out there, and I would personally rather have my own car then drive the companies car. It all depends however on your financial situation, if you think you can pay for maintenance and all other expenses associated with buying your own car, then I'd say go for it, just make sure you get a good car. If you'd rather be a little bit less self independent, and you don't believe you can manage the vehicles payments, then go for the company car. I can't tell you which one is better, as I don't know your financial situation, and it's none of my business in the first place.

However, if you can maintain your own car, I'd encourage you to go for the 16k allowance. I wish you good luck!

Answer 5

I think that a car allowance is best, because if you end up leaving the job you get to keep the equity that has been paid into the car!!!

If you take the company car, you'll eventually just have to give it back and be left with nothing.