It’s no secret that running a car is expensive, and it seems like the costs are constantly going up. There’s the price of insurance, road tax, and the annual MOT; throw extra payments for repairs and maintenance and you realize just how much your car eats into your finances. Whilst we may not like the amount of money that we have to fork out on such areas, they must be paid, especially if you want to have full access to all of the benefits that a car can give to you. But if you do your research properly, you will see that things like no deposit insurance and cheaper plans for your road tax could help to save you a significant amount of money in the long run. With that being said, there are always ways to save money when it comes to buying a car, including the company car.
Company cars are actually a very popular option for people in need of a vehicle, and account for around half of the new cars purchased every year. Though it initially began as a scheme only for employees that needed it, it has since expanded into a benefit scheme and in some cases, a standard option for employees.
Here are the top 3 benefits to having a company car:
- It’s Practical
This kind of scheme means that employees give up a portion of their salary for a non-cash benefit, in this case a car. Many people need a car to get to work, and having access to a car gives you independence and freedom.
By going with a company car, you place the process in the hands of your employees. So the company you work for will get you a good deal, and provide you with a vehicle that’s already insured. Servicing is usually covered as well, leaving you with a hassle-free experience with little to no administration to muddy the waters.
Businesses that offer company cars usually provide business-specific car models with strong CO2 figures. CO2 penalties on specific models means that sometimes we can’t get the car that we need for our own requirements. For example, if you have children then you might want a larger car but can’t afford it due to emission costs.
As a result, companies will provide its employees with eco-friendly cars like plug-in hybrids, enabling you to get a car that suits your needs.
- Don’t Worry About Depreciation
When you privately own a car, there’s the issue of your car losing value the longer you own it. As your mileage goes up the car’s value goes down, and generally a car’s value is said to have lost 50% of its worth within the first three years of ownership. Company cars tend to operate on a lease basis; so you can return the vehicle to the company after a contracted period of time and get a new vehicle.
For more information on company cars, used vehicles and more, the Automobile Association has all the facts and advice that you could need to make the best decision for you.