Ever thought about how that can work? Who pays the rest? You get a cheap car flat rate, how is that even possible, you don’t find that anywhere else?!
Here’s a little tip, it has something to do with massive tax benefits.
Obviously you (with all due respect) have no clue how company cars work. But if it’s so important to you, and you’re already getting worked up like Harry here, then I’ll explain it to you. Maybe it will change your perspective.
My employer pays (yes, with the money his employees earn) real! money as a full-service leasing rate including depreciation, interest, maintenance & wear package, tire replacement, GEZ (yes, you have to pay that again on company cars), vehicle tax, fuel and other fees like for example accident prevention inspections, driving license checks etc. pp and whatever else the bureaucratic Germany entails. Let’s say a Skoda Octavia then has a rate including fuel of 700 euros. This (real!!) money is therefore transferred by my employer to the financer/leasing company. These are (real!) revenues of the leasing company, which then pays its employees etc. A perfectly normal process in Germany :)
My employer can deduct the leasing rates (like all other business expenses in the world!!!) from taxes.
So you see, my employer has paid real!!! money for the car. By the way, I use this vehicle for my work, which is why I have the car at all, but you would probably also think I should pay privately for the mobility costs of work.
Now the employer additionally allows me private use of the company car, which is taxed like any other taxable benefit. Usually, that's 1% of the gross list price plus 0.03% of the gross list price per kilometer of distance. Let’s say for the Skoda Octavia with a gross list price of 45,000 euros, your taxable benefit is 450 euros plus (if you live 15 km away from work) 15km*0.03%*45,000 euros = 202.50 euros. Your taxable benefit is therefore 652.50 euros. This amount is added to your gross salary!
Let’s say you earn 4,000 euros gross per month. That is about 2,491 euros net with tax class 1 (social contributions: pension 372 euros, unemployment insurance 48 euros, nursing care insurance 75 euros, health insurance 318 euros, income tax 643 euros, church tax 51.48 euros). Altogether you pay 695 euros taxes and 813 euros social contributions.
Now the calculation with company car:
4,000 euros gross plus a taxable benefit of 652.50 euros is 4,652.50 euros gross. The net at this amount would be 2,808 euros, but since the taxable benefit is of course deducted again from this new net, you actually have 2,156 euros left. That means for the private (!) use of the company car you pay 335 euros. By the way: With the company car your new social contributions are pension 432 euros, unemployment insurance 55 euros, nursing care insurance 87 euros, health insurance 369 euros, income tax 831 euros, church tax 66 euros. Altogether 898 euros taxes (previously 695 euros) and 945 euros social contributions (previously 813 euros).
1) I honestly can’t explain how you get the idea that I pay no social contributions on the company car. It’s always the same for every taxable benefit calculation, no matter if it’s a company car or other perks from your employer.
2) My employer has 700 euro costs for this vehicle. Yes, that’s real money which first has to be earned (by me, by the way :) ). I have additional costs of (net) 335 euros. In total, my employer and I in my opinion already pay a lot of money for this car, don’t you think?
So what? The second or third car would probably have existed anyway, only with fossil fuel.
Then maybe that’s the problem, that we have too many cars? And not the type of drive, worth thinking about :) By the way, it’s difficult, especially with second cars, to drive so many kilometers that you ever offset the CO2 backpack. But I’m pro e-mobility anyway, so that’s fine by me. Electric cars are mostly gray and not white – for example, it would make more sense to limit the number of cars rather than electrify all of them…But what do I know :)
Diesel privilege – and we’ve had that for almost 30 years. Treat yourself, I’d say!
The diesel privilege should have been abolished a long time ago. Nobody outside Germany cares about diesel anyway. The problem is that a few years ago people thought diesel emitted less CO2 than gasoline engines (which is true) – that’s why it was subsidized. It turned out to be a dead end because fine dust and other emissions are of course also bad. The diesels that are built nowadays are finally clean – now almost no one (thank God) wants them anymore :)