Benefits of a Company Car
From providing a luxurious mode of transport to giving employees the mobility they need to stay productive, there are many benefits to having a company car. Not only will it give your employees the freedom to travel and conduct business, but you can also take advantage of tax breaks and other legal benefits. Here, we explore the benefits of a company car, from tax write-offs to bonding opportunities.
Increased Mobility
One of the biggest benefits of having a company car is that employees have access to a reliable form of transport. This will increase their productivity, as they can be more easily taken from one meeting to the next. A company car can also be used for business trips and longer journeys, which can make it easier for employees to stay connected with clients in other locations and areas.
Tax Deductions
Having a company car is a great way to save your business money. Many of the costs associated with owning and running a vehicle can be written off on tax returns, which can help lower your overall expenditure. From maintenance to fuel, there are many expenses that businesses can deduct from their taxes, making it a smart option for businesses that are looking to save money.
Employee Morale Boost
Having a company car can be a great way to boost employee morale. It can inspire loyalty and give employees a sense of pride when they have access to a nice vehicle. Not to mention, there are also chances for team building when employees are able to use the car for work trips and other activities.
Sustainable Options
Companies can also take advantage of more sustainable options when considering a company car. For example, businesses are able to invest in electric vehicles, which can reduce the cost of fuel and the environmental impact of their vehicle. This can be a great way for companies to do their part in the fight against climate change.
Options for a Packed Schedule
Having access to a company car can also be advantageous for employees who have a packed schedule. After a long day at work, they can still use their company car to take care of their tasks and errands, rather than having to rely on public transport or taxis.
Leasing vs Buying a Company Car
When it comes to choosing a company car, the decision usually boils down to the option of leasing or buying. Each have their own set of pros and cons. Here, we look at the differences between buying and leasing a company car, so you can make the best choice for your business.
Buying
Purchasing a company car has several benefits, such as the fact that you will be able to choose exactly what vehicle you want and you won’t have to worry about monthly payments. Of course, buying a vehicle will require a large upfront payment, and you’ll also be responsible for maintenance and repairs.
Leasing
Leasing a company car is often the more preferable option, as it allows the business to spread out payments for the vehicle over the course of a few years. On top of this, leasing a car often includes other benefits, such as access to a roadside assistance service. However, it’s important to note that with leasing, you won’t own the vehicle and you may also have to pay stiff penalties if you exceed the agreed-upon mileage limits.
Maintenance Costs
When it comes to owning or leasing a company car, it’s important to take into account maintenance and repair costs. These can quickly add up and will need to be taken into consideration when budgeting for the vehicle. Be sure to speak to a professional to make sure you understand the potential costs involved.
Servicing
Regular servicing is essential for keeping your car in top condition. Depending on the make and model, some cars may need more frequent maintenance than others. This is important to keep in mind, as unexpected servicing costs can quickly add up if proper maintenance isn’t being performed.
Cost of Parts
Another cost to consider when owning or leasing a company car is the cost of parts when repairs are necessary. Be sure to check with a professional to find out what kind of parts are needed for your car and also compare prices to find the best deals.
Insurance
When purchasing or leasing a vehicle it’s important to make sure that you take out the proper insurance. Having the right kind of insurance will help protect your business from a financial standpoint and can also give you the peace of mind that your car is covered against any incidents or accidents.
Running Costs
When considering a company car, it’s also important to think about the running costs. Fuel may be the most obvious expense, but other factors like road tax, parking fees, and maintenance costs should also be taken into account. Be sure to do your research and get an accurate estimation of all potential running costs so you know what to expect.
Fuel Costs
Running a car can be expensive and most of the costs will likely be fuel related. Having an accurate estimate of your fuel costs will help you budget accordingly and keep track of what you’re spending.
Government Taxes
Depending on the country, there may be additional taxes that you have to pay when owning a vehicle. Be sure to check with your local government to find out the exact customs and taxes that you’ll be expected to pay in order to keep your car legally on the road.
Parking Fees
When using a company car, it’s important to consider parking fees. From underground car parks to public parking, be sure to factor in the cost of parking for both employees using the car and also for customers visiting your business.
Conclusion
There are many benefits to owning a company car, from increased mobility to cost savings. Whether you decide to purchase or lease the vehicle, it’s important to consider all potential expenses that come with running and maintaining the car. From fuel costs to road taxes, there are many factors to consider when making the decision to get a company car.
