• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • RECOMMENDED BOOKS
  • FREE TOOLS
  • CONTACT US
  • ABOUT

The Fortunate Investor

Investing, Business & Personal Finance For Wealth Builders

  • Save Money
  • Invest Your Money
  • Get Out of Debt
  • Making Money Online
  • Family & Money
  • Taxes
  • Business
  • Retirement
    • Retirement Calculator
Home » 2020: The Year You Should Invest in a Company Vehicle

2020: The Year You Should Invest in a Company Vehicle

October 5, 2020 By Bobby | This article may contain affiliate links. For more information visit our Disclosure

Tweet
Share
Pin
Share
Share

2020 The Year You Should Invest in a Company VehicleConsidering getting a company vehicle to help your employees travel safely when working during these trying times? This could be a great idea, as not only does it keep your own staff safe and off public transport, but it can help to keep other members of the public safe too. This really is the year to invest in a company vehicle. But, of course, you need to make sure it’s financially viable. Here are some areas to focus on so you can come to the best decision.

Assess the Costs

Of course, before making any business investment, you should consider all costs involved. Here are some that you need to add into your budget to ensure that this is the right move for you and your company.

The Vehicle Itself

The main cost that you will encounter when buying a company vehicle is the cost of the vehicle itself. Few companies will buy a vehicle outright. Instead, they tend to take out finance plans. Don’t feel pressured into choosing one option or another. Make sure to browse different dealerships to find the best deal possible.

Insurance

Check out insurance policies for the vehicle you’re considering. Different vehicles will cost different sums of money to insure your staff on. You need to make sure that you’re choosing something reasonable that you can afford.

Vehicle Maintenance

Vehicle Maintenance

Remember that the vehicle will need some sort of maintenance. Even brand new vehicles can face problems as they are used and build up miles. Whether that’s new tyres, a truck oil change or anything else. You need to ensure you have some sort of savings pot or emergency fund for vehicle maintenance costs.

Fuel

When you have a company vehicle, you genuinely cover the fuel with some sort of fuel card that your staff can use when they need to fill up the vehicle. Figure out how far the vehicle will travel and how much fuel this will use. This will allow you to figure out the average cost of fuel that the vehicle will require.

Company Car Tax

Company cars are subject to Benefit in Kind (or “BIK”) tax. You need to make sure that you incorporate this into your budget if you do go ahead with this purchase. The amount of tax that will be paid will depend on multiple factors, including:

  • The vehicle’s CO2 emissions
  • The make and model of the vehicle
  • The vehicle’s list price
  • What type of fuel the vehicle uses
  • How often the vehicle will be used

Company Van Tax

Company van tax differs from company car tax, which is why many companies opt for a van instead of a car. If you provide your employees with a van and it is used solely for work purposes, they won’t be charged a tax. This includes “insignificant private use”, which could be using the van to get coffee or food on the way to work or driving to appointments during the work day.

These are just a few costs to consider when it comes to getting a company vehicle. Hopefully, the above information will help you to work out whether a company vehicle will be cost effective for you and your business!

  • About
  • Latest Posts
Bobby
Latest posts by Bobby (see all)
  • What’s Going Wrong In Your Business And How Can You Sort The Problems? - July 2, 2022
  • How To Choose The Right Manufacturing Company - July 1, 2022
  • Is Productivity An Issue In Your Business? Let’s Sort That Out - June 29, 2022

Primary Sidebar

Popular Articles

every investor

7 Current Economic Policies Every Investor Should Know About

The rate at which the U.S. economy has grown over the past decade has been unprecedented. However, … Read More about 7 Current Economic Policies Every Investor Should Know About

Whats Going Wrong In Your Business And How Can You Sort The Problems

What’s Going Wrong In Your Business And How Can You Sort The Problems?

Every business has its problems, there is no way around this. However, not every business has the … Read More about What’s Going Wrong In Your Business And How Can You Sort The Problems?

How To Choose The Right Manufacturing Company

How To Choose The Right Manufacturing Company

Having a modern, open and wide-ranging overview of the manufacturing industry is extremely important … Read More about How To Choose The Right Manufacturing Company

Is Productivity An Issue In Your Business Lets Sort That Out

Is Productivity An Issue In Your Business? Let’s Sort That Out

Productivity is one of the things that you should always be looking at when it comes to your … Read More about Is Productivity An Issue In Your Business? Let’s Sort That Out

Key Reasons Real Estate Is A Great Investment

Key Reasons Real Estate Is A Great Investment

Diversification of your portfolio is something that all investors will come across in their … Read More about Key Reasons Real Estate Is A Great Investment

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
INSTAGRAM
YOUTUBE

Copyright © 2022 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service