Whether you’re an owner rewarding a key employee, a fleet manager optimising efficiency or a self-employed professional looking for a reliable work vehicle, finding the right option is crucial. Consider these tips to find the best company car for you.
Assess your company's needs
Why do you need a company car? Ask yourself this question first to get a good sense of what you’re looking for. Will it be used primarily for long-distance travel, city driving or as a quick run-around for certain employees?
Also consider the number of vehicles needed, the expected annual mileage and the fuel efficiency required. Identifying these factors early on should help narrow down your options and ensure any vehicles purchased meet the precise needs of your business.
Set a realistic budget
With your needs assessed, take time to set a realistic budget. The purchase price is just the start, you’ll also need to consider ongoing costs such as insurance, maintenance, fuel and road tax.
A company car is likely to be a long-term investment, so understanding the total cost of ownership is essential for accurate financial planning. You may want to explore leasing options which can offer tax advantages and free up capital for other business needs.
Think about fuel efficiency and environmental impact
With growing environmental concerns across society and increasingly stringent regulations, prioritising fuel efficiency and low emissions is more important than ever. Hybrid and electric vehicles are popular choices for company cars due to their lower running costs and reduced environmental footprint.
Choosing greener vehicles can have a variety of wider benefits. There are a range of government incentives designed to help businesses make the switch to electric, which could see you saving additional investment. You may also be able to boost your company’s image because more consumers are searching for businesses with green credentials than ever before.
Consider used vehicles for better value
Buying a brand-new car isn’t always necessary to get a reliable, high-quality vehicle. Used car dealers in areas like the West Midlands offer a variety of well-maintained vehicles that can provide excellent value for money.
Choosing to buy used can also significantly reduce depreciation costs if you’re more interested in buying than leasing. Some dealerships offer warranties on pre-owned vehicles, giving you added protection.
Review financing options and tax implications
As with any business investment, there are tax implications to consider. Various financing options are available, including hire purchase, leasing and outright purchase. Each comes with distinct benefits and potential drawbacks.
Consulting an accountant or your in-house team can help you choose the most advantageous option for your business.