# Company Car



## KimiGonzales (May 27, 2013)

Hi all,

I am new to the forum so please be gentle...

I have been offered a role based in JLT (I am currently a Chartered Accountant based in the UK) and I am now considering my options. I will shortly be getting down to negotiating salary and package. Firstly, I have been informed by the agency that I should expect a slightly lower rate than market value (c.$100k) as I am deemed to be a "high risk" candidate from the UK and that my opportunities will increase substantially once I have spent a year or two in the UK - is this true?

In any case, I am planning on ignoring the agent's advice and will be looking to negotiate with the employer about what's on offer. One of the main things is trying to get a company car. I have searched through the forum but have not found anything on this. So the question is, do company cars exist in Dubai? Or do you only ever get a car allowance? The reason I ask is that it would be my preference for the employer to get a car for me, so the employer is invoiced by the finance company for example, and will pay any deposit etc. That way I would not have to worry about trying to sort out a car loan, pay a deposit, sort out insurance etc. Does such a scheme exist in Dubai?

Your thoughts on the points above would be very helpful.

I am obviously anxious and excited about making the move with my wife, but would like to have more of an idea about what I could ask for negotiating my package.


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## TallyHo (Aug 21, 2011)

Not sure what this meant: _I am deemed to be a "high risk" candidate from the UK and that my opportunities will increase substantially once I have spent a year or two in the UK - is this true_

I'd think that if you were a 'high risk' candidate they would be paying you more. A lot more. So you wouldn't move after a year or two.

As regards company cars, they certainly do exist and I drove one for six years. It was great. But this new job (more senior position) doesn't offer company cars to anyone, even the CEO. 

It will entirely depend on your company but if they haven't mentioned the possibility of a company car by this point it's probably not going to happen. Firms don't like to shoulder the additional responsibilities of owning/maintaining a fleet of cars as it adds to the overhead and headache. 

You can probably arrange for a car rental via your employer - they will arrange for the car and it will be in their name but the cost will be deducted from your salary each month in lieu of any transportation allowance you may get. 




KimiGonzales said:


> Hi all,
> 
> I am new to the forum so please be gentle...
> 
> ...


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## KimiGonzales (May 27, 2013)

Hi Tally,

Thank you for your swift response.

Yeah - I think it is a ploy by the agency re the "high risk" comment so I don't try to negotiate upwards, and jeopardise the agent's commission if things fall through.

In respect to the company car, that sounds promising. The role is a funny one - I will be the only member of the finance team based in Dubai. It is a small company (c.$35m) and it is owned by a British national. Due to the position and the fact that there are only a few people based in Dubai, with me being the most senior, I may have some scope for negotiating a car (especially something which is more luxurious than what I could get if I was paying for something myself)...

Incidentally, how much (roughly) can I expect to pay monthly for a luxury 4x4 (e.g. Infinity FX35 / Merc M-Class) if I was to get one on hire purchase? I know rental of such a vehicle would be expensive but I presume it would be less if I was buying the car over 3-5 years.

Thanks again.


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## Roxtec Blue (Jan 14, 2013)

KimiGonzales said:


> Hi all,
> 
> I am new to the forum so please be gentle...
> 
> ...


All car options are available here in the UAE as in the UK. It all depends on your company. In my case I opted for a three year lease (incl. maintenance) and this is invoiced via the company. It works for me as I cover only 30km a year. Most in my office take an allowance and pocket the difference by buying a secondhand vehicle (relatively low spec), some take the allowance and add to it and drive something fancy. Depends on the personal needs and wants. The company doesn't directly own any vehicles directly as we are a free zone company which doesn't lend itself easy to the company owning the vehicles.

Your mileage may vary


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## KimiGonzales (May 27, 2013)

Thank you for your reply Roxtec.

I am keen on quite a "flash" car although my wife is trying to reign me in...so I guess I will just wait and see what the employer says when we start negotiating.

Going back to my first comment (re becoming more employable in the UAE after having some experience of working there), is this true? Also, I have heard that changing jobs (out with the freezone) can be tricky due to Visa regulations etc - again, is this actually the case? Given the size of the company and what i am looking to do in my career as a CA, I can't imagine remaining with this particular employer for more than 18 months.

Thanks again for all the advice guys.


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## Stevesolar (Dec 21, 2012)

KimiGonzales said:


> Hi Tally,
> 
> Thank you for your swift response.
> 
> ...


Hi 

Most car brands are considerably cheaper than in UK (for some reason BMW seem expensive here).
Audi, Merc. Infiniti and VW all seem very good value and the cars are well specced here.
A luxury 4x4 - Infiniti, Merc etc can be had for around 250K AED.
Car loans from the banks are currently 2.99% flat.
You officially need to put down 20% deposit - so 200K over 5 years will cost you 3832 AED per month.
An Infiniti FX37 (329bhp!!) is from 189,000 AED and seem very well put together and specified - they have the Nissan 370Z engine and go really well!
Obviously monthly costs on one of these would be much less than my above example.
Some dealers have special offers - we recently got an Infiniti where you did not have to put down a deposit - so worth looking around.
Most cars have 5 year warranty and service packages thrown in - so apart from insurance, tyres and fuel - costs are going to be pretty predictable for first 3-5 years.
Insurance on a 250K AED car would be around 3.99% of value in 1st year - so 9975 AED fully comp.
2nd year is 3.5% of value and goes down each year (assuming no claims bonus remains in tact!!).

Realistically, you are going to need to hire a car for first three months - because you need to get your visa and driving licence sorted.
Banks will need salary certificate for car loan and this will need to state that you are confirmed in your position and not still on probation. Most companies will have you on probation for first three months (although yours may vary).

Hope above helps!!
Cheers
Steve


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## KimiGonzales (May 27, 2013)

Hi Steve,

Thank you for your detailed info. I really do have my heart set on the Infiniti but it's most likely to be a second handone (seen some on Dubizzle for around 150k). I'll just have to wait and see what I can negotiate!


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## Stevesolar (Dec 21, 2012)

KimiGonzales said:


> Hi Steve,
> 
> Thank you for your detailed info. I really do have my heart set on the Infiniti but it's most likely to be a second handone (seen some on Dubizzle for around 150k). I'll just have to wait and see what I can negotiate!


Hi,

Just be careful buying second hand cars in this market.

Cars get a real hard life here - even if looked after properly!

2nd hand cars don't get such a low loan rate from the banks - so most times it is actually better to get a new car, within your price range.
You can get an Audi Q3 or VW Tiguan R-Line for less than 150K AED brand new.

Both these cars are well equipped, have long warranties and low servicing costs.
They use the well known VW 2.0TFSi engine which is around 200 bhp for this market and they go really well.

Cheers

Steve


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## KimiGonzales (May 27, 2013)

Thanks again Steve. 

I didn't realise there was such a big risk attached to second hand cars. Ultimately, my main hope is that the company will give me a car as part of the package - that would save me the hassle in having to rent at first, then get a loan and sort out insurance for me and my wife. It will allow me to focus on my work (or at least that's what I'll be saying when negotiating with the employer).


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## Jumeirah Jim (Jan 24, 2011)

OP you know from your profession better than most why company cars exist in the UK (tax reasons)

As those reasons are totally irrelevant here you need to focus on the bottom line so AED per month. 

Yes in the past salary + housing + transport + whatever packages existed. Some still do exist. They aren't all they're cracked up to be though. 

Often employees can do better deals themselves (they are perhaps more incentivised). Plus individuals have a full market to negotiate with, conpanies may have preferred suppliers. 

In other words take the extra cash for transport costs and work out how to spend it on cars later. As a private individual you will probably get no worse hire rates than your company.

btw this is all VERY advanced thinking if you still haven't landed here!


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## KimiGonzales (May 27, 2013)

Noted Jim, thanks. 

Yeah, from the research I've been doing, it does seem that full packages don't really exist anymore. I've basically been offered 25k per month but I'm pushing towards 30k due to market value and following salary surveys etc. I just need to agree on things like medical insurance, getting my ICAS fees paid and things like that. Hopefully, things will move along quite quickly but as a typical accountant, I'm planning well in advance to ensure I am as prepared as I possibly can be.


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