Are you thinking perhaps, it’s time to invest in a company car? A car is usually a big expense but it could also be more than just a sensible decision to meet clients.
In fact, there are some perks to having a car that only belongs to the company. Here are five good reasons to invest in a company car and its advantages.
5 Good Reasons To Invest In
A Company Car
On-The-Go Marketing
A company car is a very real and promising option for on-the-go marketing. If your goal is to use full-coverage vinyl wraps, try using a company such as Lucent Wraps.
You can get essential branding printed on the side of your vehicles such as your company name and contact details.
This could potentially help you to attract more business by turning your vehicle into a moving billboard. Other forms of marketing could include magnetic roof signs or something as simple as bumper stickers.
Easy Bookkeeping
When calculating how much you owe in taxes, having a separate business vehicle makes it easier to calculate business-related driving expenses.
Assuming you’re the only vehicle for this car and it’s for business use, you can be sure that all driving expenses such as fuel, repairs, and insurance are tax deductible.
If you use your own car for both your personal life and business use, it will be difficult to track which expenses belong in what category.
Personal Liability Immunity
If you own a limited company, you can buy a company car through your business and it will be immune from personal liability.
This means that if you get into personal debts and a debt collection agency wants to seize goods, they won’t be able to seize your company car because it’s technically owned by your business and not you.
This could help to make sure that you’ve always got a vehicle if the worst happens. If your company isn’t limited, you can find out more about changing your legal structure at The Formations Company.
Professional Recognition
If you arrive to meet clients while in your personal vehicle, they may not recognize you. Having a separate business vehicle that you can brand, will make it easier for clients to identify you when you’re about to meet.
It could also be important from a professionalism standpoint. Buying a company car allows you to choose a vehicle that’s more practically suited to your business.
You can make sure that you’re clearly identified as a business vehicle, by allowing a professional car manufacturer to sell you on what makes the best vehicle for…” a laser tag business” or “a corporate hedge fund accountant”.
Showing up in a family vehicle with car seats in the back seat, to any type of work function, just isn’t going to look professional.
Practical Needs
Buying a separate company car allows you to find something that fits your business needs. Your personal vehicle can then just be all about your personal needs.
Some people like a smaller sporty vehicle for personal use but need a larger vehicle with storage room for work. Having two vehicles allows you to do this.
You may decide that you need a company vehicle bigger than a car such as a van or even a truck – this is the type of vehicle you don’t want to use for personal use.
Edited by Jessica Rose Adams
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