Peugeot 508 SW: Blazer in the back

  • Calculating company car costs for the 508 SW
  • Cost is reasonable first year, but soon increases
  • Strong performance makes it comfortable cruiser

So far the Peugeot 508 SW has done nothing but impress me.

The car’s load-carrying capabilities are excellent while the French estate’s performance is also very good, as it proved on my recent trip.

In fact the car’s capable performance makes it an incredibly comfortable motorway cruiser. This makes it an ideal choice for company car drivers.

Of course a company car driver's choice doesn’t hinge solely on a car's performance, however. The most important thing for a fleet driver who's looking to change their car is how much it will actually cost them. Not just how much it is going to cost them initially though, but how much it’s going to cost them over the next three years.

With the announcements of Benefit-in-Kind band changes in the latest Budget, cars that seem reasonable in the first year can quickly increase in price over the following years. This is all part of Government plans to get company car drivers in to lower-emitting cars.

Our 2.0-litre diesel Peugeot, with 138bhp, emits a respectable 125g/km. In the latest tax bands this means it falls in to the 19% BIK band. The P11d value of the car is a sensible £22,220.

This means that, for a 40% tax payer, our car would cost £140.73 per month for the 2012/13 tax year. That’s fairly reasonable for a car of this size and performance.

These monthly costs, however, will go up in the following couple of tax years. Due to the car's emissions, and the latest changes by the Government, it will fall in to the 20% BIK band for the 2013/14 tax year.

As a result the monthly cost then goes up to £148.13. While it might not seem a lot, with the costs of running a car on a constant rise any small increase is a bit of an irritation.

Things continue to get worse for the following tax year. In 2014/15 the monthly cost of the car goes up to £155.54, for anyone paying 40% tax. This is due to the car moving up another BIK rating, this time falling in to the 21% band.

So, while the Peugeot 508 SW may seem like a reasonable choice for the first year, the price quickly rises in the subsequent couple of years. Damn you George Osborne.

It’s an important problem to note. If you’re about to pick your company car for the next three years then be sure to check out if the price is going to change, and by how much.

You may get an unwanted surprise, otherwise.

Have you got a Peugeot 508 SW? We want to know what you think about your car in our Parkers Owners' reviews.

Current mileage: 4,562 miles

Average mpg: 50.3