One question that you will be asking yourself as a business owner is ‘is it worth getting a company car or company van?’ There are a lot of things that you need to think about before buying a fleet of company vans or cars for your business. This includes running costs, the benefit in kind (BIK) tax rate and paying for fuel benefit tax.
Providing your employees with a company car or van is a fantastic employee perk, particularly if your business requires a lot of travelling between jobs. When you are choosing a vehicle for business purposes, the business and the employees are both responsible for keeping the vans or cars in good condition.
Before deciding on whether you should have a company car or company van, this piece dives into which vehicle is right for your business.
What Is A Company Car or Van?
A company car or van is a vehicle that’s given by the business for your employees to use in a work capacity. The vehicle can be offered to the employee or director in a couple of ways, whether that’s recognising their contribution to the business or as an essential tool to help them do their job.
With company cars or vans, they can be offered by any kind of business that requires the use of a company vehicle. This type of vehicle can be used, not just for business trips, but also for private journeys too. If your business has a company car or van, then they will be treated as a taxable benefit, meaning that the employee will have to pay company car tax.
When it comes to the amount of company car tax you will have to pay, it’s dependent on a few factors. It includes the income tax band, the value of the vehicle and how much CO2 emissions the car or van generates. If your vehicle is not fuel-efficient, then you will have to pay more in the BIK tax rate.
What Are The Benefits Of Having A Company Car?
There are many benefits to having a company car, which includes having it as an employee perk to hire new staff to your business to lower vehicle running costs. Here are some of the benefits of having a company car.
No unexpected vehicle costs
With a company car, you won’t have to worry about paying for vehicle maintenance, servicing and insurance as that will be taken care of by your business. You could also get a company car fuel benefit. It will save you from having to pay for fuel yourself as the business will cover that expense for you while charging a flat rate for refuelling the vehicle.
You get to drive the latest vehicle model
Every three to four years, your company car will be updated to the latest vehicle model, whether that’s a SKODA Fabia or Toyota Prius for example. This means that you will be driving the latest version of the company car you currently use for work purposes or commuting to your workplace.
What Are The Benefits Of A Company Van?
If you run a business that requires delivering parcels or goods to clients or customers, you may consider getting yourself a fleet of company vans. We’ve listed a few benefits of having a company van for your business.
Your van won’t depreciate overtime
With a company van, you won’t have to worry about the vehicle’s depreciation (van or car losing value overtime) as you don’t own the vehicle. It means that your business can save money in the long run, while not worrying about lease or personal contract purchase (PCP) payments, which would affect the van’s sale value.
Increased productivity and efficiency
If your business relies heavily on travel in between jobs, then having a company van can open up opportunities for increased productivity and efficiency. Being able to have the space to not only transport goods, but store equipment can make it easier for you to grow your business, as well as take on more client jobs too.
Is It Worth Getting A Company Car Or Company Van?
The question of whether it is worth getting a company car or company van ultimately depends on the type of business you run and if you can afford it.
If your business requires huge amounts of travel between jobs for clients, then it’s worth getting a company van, such as the Ford Transit. Alternatively, if you choose to go for a company car for your business, we’d recommend getting a hybrid or electric vehicle, such as the Nissan Leaf.
Both company cars and vans have their advantages and disadvantages, so it’s worth bearing this in mind when choosing a company vehicle for your business.
Buy Your Company Car or Company Van From Nationwide Cars Today
Choosing the right company car or van can make a massive difference to your business’ productivity and growth. Once you’ve decided on a fleet of vehicles that are right for you, it can open up a world of possibilities when it comes to making your business more visible.
Interested in buying a fleet of company cars or company vans for your business? Nationwide Cars’ team of specialist advisors can assist you in finding a company vehicle that’s right for your business at an affordable price.
For any questions about finding the right vehicle for your company car or van, contact our team today. We also offer finance options to help you finance your company van or car that will be used as your daily drive for your business.
