Wednesday 29 May 2024

Cutting the costs of a company car

Every business owner loves the idea of owning a company car, but it isn’t always financially feasible. Here are some tips for cutting the costs of a company car so that you can afford your own business vehicle.

Lease, don’t buy

If your vehicle is representing your company, it needs to look sophisticated. German brand such as BMWs, Mercedes and Audis tend to be popular choices because of their sleek and chic design.

Such cars aren’t cheap to buy however – this is why you could be better of leasing such cars over a period of time to spread out the cost. The likes of this company offer affordable company car leases to consider.

Shop around for insurance

Business vehicle insurance can be more expensive than regular car insurance. This is because such vehicle tend to come with a higher threat of burglary. When lowering your insurance rates, your best option is to shop around.

It may be possible to take out a business insurance bundle that includes schemes such as employer liability insurance and commercial property insurance. You can also save money by investing in security measures such as keeping the vehicle off-road and using security measures such as a wheel lock.

Watch your driving

Fuel costs can quickly add up. By driving more smoothly, you can save more fuel and save costs. This could include braking earlier and accelerating more gradually so that you’re using less revs. You should also avoid driving with a trailer on the back or equipment in the car if it’s not necessary – the extra weight will have an impact on fuel consumption.

Put in place rules for employees when it comes to fleets

When it comes to fleets of vehicles owned by your company, you may want to consider putting in place rules to keep your employees driving economically. This could include speed limiters or black boxes.

Some fleet owners have even started bringing in dashboard cams as found at this website for monitoring their employees’ driving. If your employees know that their driving is being monitored, they may be less likely to drive aggressively.

Take advantage of tax-deductions

Any company driving costs are likely to be tax deductible. Make sure that you’re keeping a record of these costs. Such costs could include lease costs, insurance, road tax, repairs and fuel.

For keeping record of fuel, you may want to consider printing off receipts. If your company vehicle is also your personal vehicle, make sure that you’re not deducting personal driving expenses – if a tax inspector comes around and finds out that you’ve been deducting these costs illegally, it could land you in a spot of bother.

** This is a collaborative post

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