How to Buy a Company Car

By eHow Cars Editor

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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.

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Instructions

Difficulty: Moderate

Things You’ll Need:

Driver's license

Step1

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.

Step2

Know your budget. The amount of money you have to spend will greatly influence the type of car you are able to buy.

Step3

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.

Step4

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.

Step5

Find a car with low carbon dioxide emissions. The higher the CO2 emissions, the higher the company car tax will be.

Step6

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.

Step7

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.

Step8

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.

Step9

Fill out all paperwork. Be prepared with all vital business information to fill out the various forms at the dealership.

Step10

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.

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.