Company vehicles always sound like a good idea until you research the cost. After that, they seem more like a nightmare than a pipedream! Of course, you’d love to invest in a fleet of vehicles for the sake of your company and your employees, yet it doesn’t make financial sense.
But, what if there were ways to reduce the cost and transform them into a quality investment? Then, you could use your fleet as marketing platforms and perks that encourage recruits to join your team.
if you think a company car will always cost too much, here are the ways to turn one into a money-saver.
Claim It As A Tax Expense
Like any company asset, you can claim it as an expense on your tax return. Of course, you have to be sure that the investment is worth it in the long-term. Also, there’s personal use of the vehicle to consider, too. Anyone who drives the car that isn’t in a professional capacity will cost the business money. The best option is to go for a light commercial vehicle. The reason is simple: you can still claim Mileage Allowance Payments. Plus, any use of the van, such as commuting to work, is exempt from tax by HMRC.
Slash Fuel Costs
Running the vehicle will cost you as much, if not more, than buying it outright or leasing it. Breakdown repairs will always rank highly, but the chief expense is fuel. Therefore, you need to cut back on paying at the pump wherever possible, which is tough because people have different driving styles. An excellent loophole is to buy or rent an electric vehicle. Without any petrol or diesel to worry about, there won’t be high fuel costs at the end of each month. Alternatively, opt for a hybrid if an electric car is too expensive right now.
Use A Finance Option
You need a van but can’t afford to buy one at the moment. The alternatives are to lease it or get it on finance, and the latter beats the former as a general rule. Firstly, choosing a partner such as Van Stop means you can trust their deals as they use specialist motoring finance houses. Secondly, and more importantly, you can sell a vehicle on finance back to break even and cover your losses. So, if money gets tight, there is always a safety net to prevent you from spending a fortune.
Ask Employees To Share
Every employee will want access to a company vehicle, but you can’t buy a fleet of them on a whim and blow your entire annual budget. Instead, you only need to purchase one or two at the most and make it known that they are available on a first-come-first-served basis. That way, everyone should share them equally. Remember that not every employee will qualify to use a company vehicle, so you don’t require lots.
Other excellent tips include shopping around for deals and using comparison websites to reduce overheads. For example, “affinity discounts” can stop you from paying a premium for insurance.
