1. You get to choose your car (which may be subject to conditions from your employer).
2. Choose how you finance the car – purchase, lease, Hire Purchase, PCP, bank loan, it’s up to you.
3. Get to keep the car – it’s your car, so if you leave the company you still keep it, plus any remaining value if and when you sell or trade it in.
4. Change at any time – you get to change your car when you want, to what you want. If your circumstances change and you now need a family wagon, for example, then you can. By contrast, often with company cars, they are replaced at fixed intervals or at the employers’ discretion, which could be many years.
5. No tracker – many employers fit GPS trackers to company cars, which you may not be comfortable with. But this is your car, so it’s your rules.
6. You may make money – if you already own a car you’re happy with and it meets the employers’ conditions, you could actually pocket the car allowance and use it to invest!
(The benefits above are relevant to a traditional car allowance scheme and not salary sacrifice).