Thinking of buying a company car? Perhaps you’ve been considering an entire fleet of vehicles for your employees? Whatever the case, here are some tips that could help you to save money when buying a vehicle for business purposes.
Consider a lease
Many business owners looking for a company vehicle on the cheap opt for a lease. By choosing to lease a vehicle, you’ll pay a monthly fee rather than having to pay a large upfront cost – however you could pay more in the long run than were you to buy the same vehicle outright. Leasing may give you access to vehicles you might not otherwise be able to buy without taking out a loan. As you don’t own the vehicle, you won’t be able to make modifications, but you could still add branding via vinyl wrapping. It’s sometimes possible to buy the vehicle off the owner after the lease has ended, but you’ll pay a lot more than were you to buy the vehicle elsewhere.
Take out the right insurance
You must take out business vehicle insurance on a business vehicle – taking out regular insurance could invalidate any claims if the insurer discovers you were using it for business purposes. Unfortunately, business vehicle insurance premiums are often a lot more expensive than regular vehicle insurance premiums, however there are ways to save costs. Consider upping your deductible, adding security measures and paying annually – all of these will lower your overall rates. You may even be able to save money by taking out a business insurance bundle – this may include multiple business insurance schemes include vehicle insurance, property insurance and employer liability all at discounted rates compared to if you were to take them out separately.
Watch your fuel consumption
By driving economically, you can help to save fuel and save costs. You could also help to put less wear on vehicle parts and prevent unnecessary repairs. Whilst this is something you may be able to easily do yourself, you may find it harder to convince your employees to drive carefully and economically when you’re not around to monitor them. This could be a good reason to install a telematics system in your vehicle. There are many benefits of vehicle telematics systems, one major one being the ability to monitor employees use of fuel. By knowing that you’re keeping a record of this, your employees will be more likely to drive carefully and conserve fuel.
Record all driving expenses
Any driving expenses could be tax deductible, saving you some extra money. It’s important to keep a record of any driving expenses for this reason so that you can get the tax reductions that you deserve when it comes to filing your tax return. This could include collecting receipts every time you pay for fuel or repairs or paying for it all on card so that you have a record of it on your statements.