car allowance… it sounds like something your parents used to give you as a kid so that you could save up money and, one day, buy your first car. but when we talk about car allowance as fully-grown adults, we’re talking about something quite different. car allowance is a sweet little agreement between you and your employer, so if you were lucky enough to score it, then congrats! so, all you have to do now is find out how it works and find a car that you love!

car allowance is a set amount offered to you by your employer to contribute to the use and expense of a motor vehicle (aka car). and there are no limits or restrictions on how you use the car, whether it be for work or personal use. sounds like a dream?

how it works

car allowance can work in a couple of different ways:

keep your own car and use the allowance for running costs

let’s say work is offering you a company car, but you love your granny-stock 1984 mazda 323 so much that you simply couldn’t bear to go a day without driving it. if you’ve agreed to a car allowance with your employer, then you can keep your own car and use the money from the allowance to cover the running costs. these can include fuel, maintenance, repairs, insurance, registration and even finance repayments. you can see how attractive all of these benefits are to an employee like yourself.

and the second way car allowance can work is this:

buy a new car with allowance

let’s say you can’t stand your granny-stock 1984 mazda 323 any longer and you’re dying for an upgrade but, for whatever reason, you don’t want a company car. with your car allowance, you can actually ditch the 323 and put the money towards buying a new car which you own.

both options of using car allowance are great and the better outcome of the two depends on your personal situation and your long-term plan. regardless of which option you’re leaning towards, chat with the team at fingo before you make your decision. as car finance experts, fingo can help you reduce the payments on your current car, or they can help you buy a new car with all the necessary deductions. either way, you’re getting a win-win situation!

fingo offers much more than just personalised advice when it comes to car allowances. we can help you buy, sell, trade or lease a car and we’ll get you the best price, guaranteed. we have connections with over 2,000 car dealerships across australia – we’re always able to sniff out a fair deal. get in touch with our friendly car finance experts today!

Fingo Finance