Would a Company Car Be Cost Effective for You Right Now?

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When you run your own business, a car is always bound to come in useful. There are just so many uses and benefits that come hand in hand with having your own set of professional wheels! When you have a company car, you can head to meetings and other appointments without having to worry about taking public transport and getting caught up in delays or cancellations that could make you late and make you come across as unprofessional. You won’t get caught walking in the rain on the way anywhere, turning up looking scruffy and unkempt. You can get to exhibitions and events while transporting all of the stock and merchandising materials you need. So, if you’re considering a company car, you’re on to a good idea. One thing that may be in the back of your mind right now, however, is cost. 2020 has been a difficult year for most businesses and chances are you’re reluctant to fork out on anything that isn’t going to prove cost effective. So, let’s take a moment to consider whether a company car would be a good financial investment for you right now.

The Cost of the Vehicle

The first and main cost that you need to consider when buying a company car is the cost of the vehicle itself. Few companies will buy a vehicle outright, as this isn’t always logical – especially if you plan to upgrade your car every few years to always look at the top of the market. Instead, a pcp finance plan is generally best. This way, you simply pay the depreciation on the value of the car and then trade it in for a new model at the end of your agreement. Make sure to browse your finance plan options to find the best interest rate possible. Then take the monthly costs and see if they’re affordable and reasonable for you.

Insurance

Remember that your vehicle will need to be insured too. This means insuring yourself to drive it, as well as anyone else who may need to drive it. Different vehicles will incur different insurance costs, so make sure to check the price of insurance before buying. You don’t want to find that the insurance cost pushes the vehicle outside of your budget.

Vehicle Maintenance

Chances are your vehicle will need some maintenance along the line too – even if it’s a brand new vehicle. There are all sorts of problems that can need to be rectified over time and you need to make sure that you have the spare cash to repair any issues with your car – whether that’s replacing a tyre, replacing brake pads, topping up with oil from www.peakhd.com or anything else. Plus, you need to upkeep your vehicle aesthetically. This means cleaning and valeting costs.

Fuel

Your company vehicle will also need fuel to run. Consider fuel costs when creating your budget and make sure that you’ll actually be able to run your vehicle without spending excessively.

As you can see, a company car comes hand in hand with all sorts of costs. Factor the above costs plus tax and extras into your budget to determine whether this is a reasonable purchase for your company or not!

(Cover Image Source: Pexels)

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Larry

Larry is the father of 5 wonderful kids. He has his normal "offline" job but has also been running an online business for over 15 years. When he is not working on websites or blogging, he enjoys video gaming and watching sports.

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