The purchase of a personal car differs greatly from that of a company one. You must consider several purchasing options, each coming with its own tax relief implications and liabilities. Despite the effort, purchasing a company car through a limited company can be straightforward when done correctly. This article details all the important things to know before buying a company car. For those exploring options locally, Stratford Car Dealers often provide guidance and a wide selection of vehicles suitable for both personal and company needs.
You’ll understand how best to make the right choice based on all available options.
Register the Company Vehicle
After purchase, your vehicle must be registered according to your country’s laws. Keep in mind that you cannot drive with a suspended license plate. Every country has unique vehicle registration requirements. If your car dealer doesn’t handle the car registration, be sure to register the vehicle yourself, detailing your car insurance, driver’s license and other required information within a month of purchase. If needed, you can seek some assistance with some of the above tasks as they can be time-consuming. Various companies assist with ordering number plates and can help speed up the registration process.
Decide Whether to Own or Lease
You need to ask yourself which of the two options is the most ideal for you and your business: leasing or outrightly buying the car. Leasing a car has advantages like a reduced lease cost, which comes from the residual value at the end of your leasing period. However, leasing also comes with some upfront costs, which might make the process overwhelming and ultimately costly.
Choosing to purchase the car means you might rely on a car loan that needs to be repaid with interest. The interest on your loan doesn’t change whether or not the value of your chosen car drops below its set price.
Know How Often the Car Will Be Used
Purchasing a car is a huge investment, so it helps to be certain that the car will come in useful. Think about what you need the car for and whether or not it’s going to be used often. The consistency of usage will determine the type of car you should invest in and the kind of auto insurance policy to sign up for. Generally speaking, when buying a commercial vehicle, you’ll also need a commercial auto insurance policy that offers protection and remuneration in the event of an accident.
Consider Car Tech Features
To make your business rounds more efficient, your company car should come equipped with high-tech features such as telematics, driving GPS and cosmetic bells. Telematics is a dongle-based program that helps track vehicle location while reducing distracted driving.
However, it’s vital to note that the more features you want, the more you should be willing to pay. Before putting money into extra features, ensure you’ll use this vehicle often.
All in all, vehicles aren’t a cheap investment, and with all the other factors that must be considered, you and your company must be extremely certain that this is a worthy investment. It helps to first discuss your options with the team. Once done, be sure to immediately start the registration process and insurance protection after making your final decision.