Thursday 23 February 2012

Cost of car ownership

Ever since I came to Belgium I have been hearing about how good is the company car and how it is in my financial interest to choose that.
I understand that if you don't have a car it is a bargain.
I understand that if you live half a belgium away from workm it is again a bargain because of the fuel card.

But I have a car. It is not perfect but it is a car that actually runs prety well and does its job. I don't live very far from work so again it is a matter of usage. Ever since I came to Belgium I have this issue of finding out the actual cost of owning a car in Belgium. Just simple ownership.

Today I presented with some numbers. For a 2008 mini car, I was informed about 130€ road taxes and 1000€ for full insurance. Total sum of 1200€ annually.

This is the same cost in my country and we don't have company cars. I am not saying that it is cheap, but why for example is it concidered in Belgium the car such an expensive comodity? I don't understand.

Am I missing something besides cost of maintenance of the car? Is it so cheaper in other countries?

In plain numbers, 7000€ that are kept from the salary are like 3500€ less in net salary because this 7000€ would be taxed with the highest rate, around 50%. 3500€ is not much for the annual cost of buying and maintening a new car, especially if the fuel cost is high, because of heavy commuting. I'm just wondering whether I have been spending this kind of money for my 2004 Renault Clio 1.4. Currently ownership of the car costs me annually around the same as here. Is it really in my interest to choose the company car, especially when there is like a goverment predisposition to increase taxes for leased cars.

If I didn't own already a car I wouldn't even concider buying one. I have already paid a serious amount for my 8 year old car and I would really like to avoid doing something like that again in the future. But since I own one and it is difficult to sell, assuming I could import it to Belgium (I hear it has serious issues), I feel that I have one more serious decision to make.

Cars are a really expensive commodity, regardless if you or the company pays for them. And they are everywhere expensive to have.



No comments:

Post a Comment