Cash Alternative or the Car — Which Should You Take?
[DRAFT — HUMAN REVIEW REQUIRED]
Take the cash if you'd sell the car anyway — you skip the hassle and get a similar net amount without the wait. Take the car if it's one you genuinely want, plan to keep for several years, and the cash figure feels low for the trade.
How cash alternatives are set
Operators set the cash alternative at a fraction of the stated prize value, typically 60–80%. The stated prize value is the operator's claimed RRP — often at or slightly above list price. So the cash alt is often close to what you'd net selling the car privately soon after winning, without the effort.
A £50,000 stated prize with a 70% cash alternative = £35,000. A private dealer might offer £38,000–£42,000 for the same car, but you'd need to find the buyer, arrange the handover, and wait for the payment. Once you account for the time and friction, the cash alt gap narrows further.
Tax
Both options are tax-free at the point of winning. Prize winnings from UK competitions are not subject to income tax or capital gains tax. If you subsequently sell the car and it has increased in value above what you received it at, CGT could theoretically apply to the profit — but this is unusual in practice, since most cars depreciate. If you're in any doubt, verify with a qualified tax adviser.
When to take the car
- It's a car you'd actually choose to own and drive for three or more years
- It's a limited-edition or high-demand model that holds or appreciates in value (some Porsches, AMG variants, special editions) — note this is the exception, not the rule
- The cash alt feels significantly below the car's value to you as a user
If you'd keep it for several years, the full value of not having to buy the car matters more than the cash alt figure. A £45,000 car you'd genuinely drive for five years is worth more to you than its £30,000 cash alternative.
When to take the cash
- You'd sell the car anyway
- You need the liquidity
- The car isn't something you'd choose to own
- You're carrying debt where a lump sum has a higher effective return
Most winners take the cash. The practical reasons are obvious: no insurance to sort immediately, no delivery to arrange, no depreciation clock ticking from day one. Operators like Dream Car Giveaways and Rev Comps process cash payments quickly — some within 24 hours.
Cash bonuses vs cash alternatives
Some draws advertise a cash bonus alongside the car: "£45,000 BMW + £10,000 cash." That £10,000 is in addition to the car — not an alternative to it. The cash alternative (if the competition has one) is a separate option to take money instead of the car. Read the terms carefully to distinguish which you're looking at.
The RRP question
Operators set the stated prize value. It's worth knowing that this figure is sometimes at or above the car's current market price. The cash alternative percentage is applied to that stated value — so an inflated RRP produces an inflated cash alt figure in absolute terms, but the relativity is set by the operator, not the market.
Where we have both prize value and cash alternative from an operator's own listing, we show both. The cash alt is often a more honest proxy for what the prize is actually worth to a winner who takes the money.
For everything that happens after you win — identity verification, timelines, delivery: What happens when you win a car competition?
18+ only. Prize terms vary by operator and draw — always read the T&Cs before entering. Tax treatment above is general guidance; verify with a qualified adviser for your specific situation. About our reviews. We may earn commission from operator links — it doesn't affect our data.