V
vinvon
Guest
Hi Folks
I am trying to put together a financial modelling spreadsheet to assist with the purchase of a car vs getting a company car. I have an accounting question which I would appreciate some thoughts on.
Basically I am trying to compare 4 options - 1. Purchase a car for €10K 2. Purchase a car for €15K 3. Purchase a car for €25K or 4. Get a company car worth approx. €40K
My question is with respect to the treatment in the model of any cash used to purchase a car? Let say I buy the €10K car for cash and the car is worth €6K in 3 years. What cost should I assign to this €10K apart from depreciation? Is there such a thing as the opportunity cost associated with this 10K and can this be realistically measured.
I have a budget of approx. €6K per year to either buy a car or lease a conpany car but BIK is starting to hit hard hence the need for a real comparison.
I am trying to put together a financial modelling spreadsheet to assist with the purchase of a car vs getting a company car. I have an accounting question which I would appreciate some thoughts on.
Basically I am trying to compare 4 options - 1. Purchase a car for €10K 2. Purchase a car for €15K 3. Purchase a car for €25K or 4. Get a company car worth approx. €40K
My question is with respect to the treatment in the model of any cash used to purchase a car? Let say I buy the €10K car for cash and the car is worth €6K in 3 years. What cost should I assign to this €10K apart from depreciation? Is there such a thing as the opportunity cost associated with this 10K and can this be realistically measured.
I have a budget of approx. €6K per year to either buy a car or lease a conpany car but BIK is starting to hit hard hence the need for a real comparison.