How to Buy a Company Car
In many companies, one benefit reserved for employees is the use of the company car. Whether you are the owner of a business, or the employee designated to close the deal, buying the company car can be a hectic experience. Follow these steps to a smooth transaction.
- Difficulty:
- Moderate
Instructions
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1
Beware of company restrictions regarding the company car. Talk to your supervisor about these regulations. There may be a certain brand of car or a specific model that is required in your company's contract.
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2
Know your budget. The amount of money you have to spend will greatly influence the type of car you are able to buy.
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3
Decide if you are buying a new or used car. Remember that with a used car your taxable value is the current market price of the car rather than the original list price.
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4
Look for a car that gets the most miles per gallon, especially if your career involves frequent travel. This important feature will impress superiors with your money-saving mindset.
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5
Find a car with low carbon dioxide emissions. The higher the CO2 emissions, the higher the company car tax will be.
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6
Consider buying a classic car. Although the government tends to discourage company cars, different rules apply to the purchase of classic cars, which may make the deal easier in the long run.
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7
Shop around. It's always a good idea to utilize your negotiating skills when it comes to buying a company car. Play one dealer against another to get a good deal.
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8
Test drive the finalists. After you narrow your search down to three or four cars, take them each for a test drive to see which car will best suit your business needs.
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9
Fill out all paperwork. Be prepared with all vital business information to fill out the various forms at the dealership.
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10
Drive your new company car off the lot and relax at the thought of no insurance, fuel or emergency service payments coming out of your pocket.
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1
Tips & Warnings
Try to buy your company car during the last two weeks in December. Many dealers will lower their prices to compensate for a decline in business during the Christmas season.
A service company run by one individual would be better suited owning a car privately.
