Car Allowance

[ex nihilo]

Hi Guys,


Not sure if this is the correct sub forum to post in so please move if not.

I'm currently job hunting and was recently contacted about a job offering x salary + benefits package + an 8K car allowance.

This seemed strange to me because the type of work I do does not require travel (except potentially intermittent travel to the US).

The position offers a 15% bonus + pension etc.

Is this just a way of the company reducing their potential bonus + pension obligation by reducing my base or is there other reasons companies do this?

This might be a stupid question but do I actually need to spend 8k per year on a car or can I simply just take the money as salary? Would a car allowance cover say 5k per year capital + repairs for car + 3k for regular commuting expenses to and from work i.e. petrol + tolls. Or would I have to actually say take out a lease or car finance totalling 8k per anum in repayments?


Thanks for reading,

Ex.

 

[thos]

Usually just gets paid as cash, so taxed as such also. Would probably not count towards salary or pension alright.

It would typically create an obligation to travel for work, and may impact on mileage allowances or other such things.
But, if travel not expected, just sounds like a perk, and I'd generally assume it as part of monthly salary, and you can do with it what you wish.

 

[ex nihilo]

Usually just gets paid as cash, so taxed as such also. Would probably not count towards salary or pension alright.

It would typically create an obligation to travel for work, and may impact on mileage allowances or other such things.
But, if travel not expected, just sounds like a perk, and I'd generally assume it as part of monthly salary, and you can do with it what you wish.

Thanks