Salary vs company car

In the face of changes mobility market and, in the incentives to reduce the use of the energy shift sometimes forced by employers and the pressure from the benefit in kind for non-electric cars without to talk about the often misunderstood and poorly implemented QM decision, many employees are asking themselves the same question: should you keep your company car Or convert your mobility budget into a salary?

According to a study According to a recent figure conducted by Mobiz, the verdict is clear: the company car remains systematically more advantageous, both for internal combustion vehicles and for 100% electric models.

On the surface, Converting your company car budget into a salary seems like a simple choice and flexible. In practice, the results are much less favourable. The mobiz study shows that the net amount obtained after conversion does not cover never the real cost of using an equivalent car owned by you.

Why?

Because the budget car transformed into salary is subject to:

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  to taxes
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  social security contributions
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  no longer benefits from the conditions advantages of professional leasing
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  no longer gives access to discounts granted by manufacturers for company cars.

Result : the employee is left with a net budget insufficient to finance the purchase, maintenance, insurance or charging of a vehicle comparable to the one provided by the employer.

Own a vehicle involves a series of expenses that are often underestimated :

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  Financing and depreciation of the vehicle
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  decreased capacity to borrow for other important investments such as a home
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  individual insurance, always More expensive than in a professional fleet
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  Taxes
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  maintenance, repairs and Tyres
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  energy costs (fuel or electricity)
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  not to mention the uncertainty about the Resale value amplified by rapid technological change

So many elements which, cumulatively, weigh heavily on the personal budget and that the net salary from the of the converted car budget does not compensate.

It's a respectable but then why not keep the company car, opt for for a more modest car that does not consume the entire budget and ask your employer to convert the difference into salary compensation ?

This approach is possible and offers advantages:

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  You keep all the advantages of the company car
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  you increase your take-home pay to finance other desires, other needs, other projects
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  upon renewal of the vehicle, you can decide to favour the car again and consume totally your budget by renouncing salary compensation.

Leasing a electric vehicle as a company car further strengthens the advantage by in relation to salary conversion. Electric vehicles are more tax advantages, which significantly reduces the benefit in kind (ATN).

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  NTDs of 0.5 to 0.6% for 100% electricvehicles
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  2% NTD for engines thermal emissions, from the first gram of CO2 emitted

In business, these vehicles also benefit from particularly special leasing conditions which allows the driver to drive a recent model, Quiet, comfortable and eco-friendly... for a total cost that is still largely much lower than what would be required for a purchase of your own.

For many employees, this tax advantage is already reason enough to Favour a company electric vehicle rather than converting it to a salary.

In this logic optimisation services, some services further enhance the interest of the company car. Ayvens Switch, for example, offers a leasing concept allowing for a primary vehicle, often a model more tax-advantaged electric vehicles, while occasionally gaining access to a fleet of vehicles according to the needs of the moment (SUV, van, convertible etc.).

This solution offers Tailor-made mobility, while reducing the benefit in kind up to 70%, which further reinforces the interest in remaining in the company car rather than converting your budget into a salary.

Mobility is evolving, but one thing remains certain: the company car remains the most advantageous solution both financially and in terms of in terms of comfort and risk management.

Between taxation penalizing conversion into wages, the real costs are often underestimated of a private vehicle, the enhanced advantages of electric leasing and the flexible solutions such as Ayvens Switch, everything is converging towards the same obvious: keeping your company car allows you to preserve your purchasing power while benefiting from modern, comfortable mobility adapted to its needs. needs.

Far from being a simple The advantage is that the company car thus becomes a real lever optimisation of the mobility salary package, capable of combining savings, comfort, flexibility and transition to more sustainable mobility.