Company cars – what are the options?

This content was provided on behalf of Maxxia

WHETHER you’re self-employed or you own a small start-up, company cars can provide great benefits for your business. But with so many options available to cater to the diversity of different businesses, it’s often confusing to understand what’s out there.

Here are some of the most popular options along with a short summary of what they could mean for your finances too.

Buying the vehicle

If you have enough money, buying a vehicle outright could be the best option. This means that the legal rights, liabilities and entitlements are all yours and although there may be an expensive initial payment, because there is no interest to pay out, it could save you money in the long-run.

However, the vehicle’s repair costs will be your responsibility and its value will eventually depreciate on your balance sheets even though it will be listed as an asset.