When getting company cars for your business there are many things you need to consider. From the make and model, to sorting out the insurance and deciding which employees get a company car? Here are the top 5 things to consider:
Pool cars or cars used by one employee?
Some businesses find it especially handy to get pool cars which are kept on the business premises. These are a great idea for businesses such as agencies and newspapers, where different employees regularly have to nip out to see clients and then head back to the office and you don’t have to pay anything to HMRC. If a car is used by a singular employee and used privately too, there are rules and regulations on the national insurance the company has to pay.
There are many different insurance options to consider. Try going with a company which offers a fleet insurance policy which will make it significantly cheaper. It’s also worth considering getting black boxes installed in the cars which track the drivers driving speed and style and reduce the insurance costs by around 5.5%.
Which type of car to buy?
Companies are encouraged to buy more fuel efficient cars when they make a fleet purchase. Company bar taxation is based on emissions so it makes sense to go for a low emissions car. Some of the best low emissions models include Fiat 500’s, mini and Citroën C1 however if you want something larger there are many dealers which offer fantastic discounts to those purchasing a fleet.
To lease or to buy?
There are so many options when it comes to buying/leasing a new car it can be confusing. It’s definitely worth considering whether leasing a fleet of cars could be more financially beneficial for your company or not before diving in. Check out whether the benefits of leasing outweigh buying your own fleet before making any decisions as company cars can be costly business.
New cars or used?
Obviously buying brand new cars has a lot of advantages but it can be hugely expensive especially when you’re buying several. As company cars are for your employees to use day in day out it’s often a much better idea to buy used cars financially. Buying through a reputable dealer like the Automobile Association means you can sure the cars are in great condition and won’t let you down, you can let go of all the usual reservations that come with buying second hand cars.