5 Tips for Choosing a Company Car
There is a lot to consider when it comes to choosing a company car.
You will need to think about the cost, image, environmental impact, employee needs, and tax implications, just as a few key factors.
This post will offer five tips for choosing a company car that should help you find the perfect vehicle for your business while keeping your costs down.
1. Assess Total Cost of Ownership (TCO)
When choosing a company car, it is important to look beyond the purchase price and focus on the TCO. There are many ongoing costs to cover, including fuel, road tax, insurance, and maintenance. You need to work this out by calculating the purchase price and operating costs over the expected lifespan and focusing on long-term value instead of just the initial cost. This will help you make smart financial decisions for any company asset.
2. Consider Fuel Efficiency & Environmental Impact
Sustainability is a top priority for businesses in 2024, so fuel efficiency and emissions are critical factors when selecting a company car. Hybrid and electric vehicles are an excellent way to minimize your impact and boost your green image; plus, you can make significant long-term savings by making the switch to a low-emission vehicle.
3. Align Vehicle Choice with Employee Needs
The needs of your employees must also be considered. You should think about the kind of trips they will be doing (long-distance or city driving), comfort, and safety features. It is important to choose a company car that will provide a smooth, comfortable, and safe journey and be well suited to their role. An event company employee will have different needs than an insurance company employee for example.
4. Understand Tax Implications and Benefits
Company cars come with tax implications, both for the business and the employee. It is important to have a strong understanding of these implications, particularly Benefit-in-Kind (BiK). BiK is the non-cash benefit given to workers that has monetary value but is not included in their annual salary.
5. Consider the Second-Hand Market for Cost Savings
Finally, it is worth considering the second-hand car market for significant cost savings and to get more for your money. You can easily find high-quality, low-mileage vehicles that will make excellent company cars as it is such a large marketplace with many reputable sellers in all areas, such as used car dealers in Wimbledon for those in London and the southeast. A used car will be cheaper to buy and run, plus you will also avoid the biggest depreciation hit.
Final Thoughts
The tips in this post should help you choose the perfect company car for your needs. This will always be a big decision, and not just because it is a lot of money to spend. It is important to take your time and find a vehicle that will be good value for money, efficient, and practical for your staff while having a strong understanding of the tax implications of buying a company car.
I am a marketer, content creator and digital nomad based in London who loves to travel, write, read, dance, workout and socialise.