Cutting The Costs Of A Company Vehicle

July 18, 2019 10:44 am

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Thinking of buying a vehicle for your company? Whether you’re buying a company car or a lorry, the costs can soon add up. Here are just a few ways to make owning a company vehicle more affordable.

Look into finance schemes

Buying a vehicle on finance can save you money on upfront costs. There are many companies that specialise in commercial vehicle finance such as Southern Commercial Sales. Having a good credit score could allow you to get a better finance deal – this could include lower monthly instalments, less interest and a lower deposit. Buying a vehicle on finance may be possible with a very poor credit score.

Try leasing

Leasing involves essentially renting a vehicle. Like a finance scheme, you pay monthly – however because you do not own the vehicle, you may be restricted when it comes to modifications. An advantage of leasing is that you will generally save money on maintenance costs – the company you are leasing from will usually cover any servicing and repair fees.

Bundle your insurance

Commercial vehicle insurance is often a lot more expensive than personal vehicle insurance. You may however be able to save money on insurance by bundling it with other forms of business insurance. Companies like Hiscox specialise in creating personalised insurance packages that could include commercial vehicle insurance and other schemes such as employer liability insurance at a discounted rate. As with personal vehicle insurance, there may be other ways of lowering your rates too such as upping your deductible and protecting your no claims bonus.

Encourage economical driving

You can keep running costs down by considering the way that you drive. Braking early, using high gears and avoiding harsh acceleration will help you to get more miles to the gallon – saving you money on fuel. A more smooth style of driving will also put less strain on your car’s engine and parts, which could help to prolong wear and tear and reduce repair costs.

It’s possible that employees may also drive your vehicle, in which case you may have to find a way of encouraging your employees to drive economically. Monitoring their driving could encourage this. You can also offer rewards to employees that drive economically.

Deduct driving expenses from your tax

All company driving costs are likely to be tax deductible. Make sure that you’re keeping a record of fuel costs, repair costs and other driving expenses so that you can deduct these from your company’s tax. You may be able to do this by keeping receipts or by keeping bank statements. Hiring an accountant may be necessary.  

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