What’s Best: Company Car Or Cash?


If you’re lucky enough to have the chance to benefit from a company car, or if you are applying for jobs where one may just become available, then you have a choice to make. That choice may not be as simple as you first think. So here we look at what’s best for you, a company car, or the cash alternative. Hopefully having read this article you will be in a much better position to make an informed decision, and moreover make the right one.

Decisions, Decisions…

Your career may be going well, but with great progress comes great responsibility – to make the right decisions. If your new job or recent promotion have meant that you now have the option of a company car, then this is a big decision indeed.

On offer will be savings in terms of maintenance, running costs, repairs etc. but that doesn’t make it right for everyone. All cars are not the same and we as individuals are all different too, just ask the number plate maker! There is another option, that of cash. So which is right?

The Car

The biggest perk is not worrying about running costs, accidents, time off the road etc. Somebody else is paid to worry for you, and that’s always a bonus. Furthermore there is no personal financial tie, so if you up and leave, the car stays and you get a clean break. There’s no need to worry about breakdown cover, insurance etc. So it all looks good – but then there is the tax to consider, which car to have, the emissions etc. But one bonus is the tax is taken from your pay, so administratively it is easy.

You do need to consider the issue of fuel, whether that is included, or limited. Think of your commute and the amount of mileage you’ll do. One great bonus though is a new car every 3 or so years, meaning up to date technology and comfort.

So whilst you never own the car, and there may be limited choice, it does give you the freedom of no surprise bills, and an up to date motor. So what about…


Firstly, who doesn’t want more cash? Amounts vary between companies though so be certain you know what it is exactly you are getting.

One bonus of cash is that you may already have a perfectly good car, or have a short, easy commute. That cash is therefore a welcome injection into your family finances to spend on other things. You also get the car you want, without thinking about emissions etc. You will have to think of a reserve fund though for unexpected costs, repairs and matters such as insurance, something you’ll have to sort yourself.

So whilst you have an asset you own, the freedom of choice and more money every month, you have a degree of uncertainty about cost and the car is replaced regularly for you.

For some a company car is an asset, for others a luxury they choose to do without. What’s right for you though when it comes to a company car or cash will be as individual as the number plate maker making up a personalised registration. Having read these tips, the decision is yours to make.

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