Nationwide Vehicle Contracts has put together a short blog to help you choose the right company car for your business
Having trouble deciding on your next company car? It can be complicated to balance luxury, affordability, and tax efficiency, especially if your employer or business has rules/requirements on what you can or can't have.
However, choosing the right company car shouldn't be difficult. As with any other decisions your business makes, you should have some idea of what you are trying to achieve with a company car, whether buying or leasing. Setting objectives allows you to narrow your search and find the best company car for your needs.
So to help you choose the right company car for your business Nationwide Vehicle Contracts has put together a straightforward guide that explains what to look for when deciding on your next company car.
What do you use your car for and what type of journeys do you take?
What line of work are you in? Answering this will likely narrow down the best company car for your needs. Do you have long commutes or travel some distances? Are you nipping around the city or suburbs five days a week? If you have to drive around narrow city streets, consider what your parking situation will look like. A small car might be the most practical company car choice if you have short commutes or travel around a busy city centre. The Fiat 500 or Hyundai i10 are great options for a city-friendly run-around.
Likewise, a more powerful vehicle might be better suited if you cover many miles and spend a lot of time on the motorway. If you frequently travel on motorways and A-roads, consider vehicles like the Audi A6 Saloon or Volvo XC40.
How often do you use your company car?
If you use your company car most days, you want to ensure it's comfortable internally and how it handles on the road. It's a good idea to go to car showrooms, give a few cars a test drive, and get a feel for them before making your final decision.
Long-term leases are also an excellent way to find the ideal company car without making the large upfront expenditure required to purchase a vehicle. Long-vehicle leasing also comes with the benefit of reduced rates over short-term rentals also comes with leasing.
For more information on business car leasing, check out our Business Leasing Explained guide and our Pros and Cons of a Company Car guide.
How important is fuel efficiency?
Whether you stay close to home or travel across the country, you want the best fuel efficiency in a vehicle that satisfies your numerous other needs. Consider whether an electric or a hybrid vehicle better suits your business needs. A company car that uses fuel alternatives can be a great solution if you are sticking close to your base, whether that's home or the office, as most of your journeys will be shorter.
If fuel efficiency is a significant factor in your company car's decision process, check out our Top fuel-efficient cars guide with a list of vehicles with the best MPG.
What are the tax commitments or benefits you might need to consider?
When it comes to fuel economy, tax considerations are crucial. The government has pledged to cut emissions over the next few years. Therefore, vehicles with higher CO2 emissions will be taxed more heavily hence why hybrid and electric vehicles have massive appeal for businesses.
With the UK government's decision to ban the sale of petrol and diesel-based vehicles by 2030, there's never been a better time to consider alternative solutions for your company car. There are many great eco-friendly options to choose from, with the Tesla Model 3 and Nissan LEAF being some top favourites.
It's important to remember that company cars are also considered a benefit and are taxed accordingly. Depending on how much you use the vehicle for personal use, this could fluctuate dramatically. Read our Company Car Tax Explained and Company Car Tax Rates guide for everything you need about company car tax.
What are the best company cars?
Business lease customers have specific needs when choosing a company car. Similar to personal car leasing, pricing and stock availability are still crucial factors, but BIK (benefit-in-kind) tax rates, P11D values, and day-to-day running costs are all crucial factors to consider.
With over 500 luxury car leasing models for your business to choose from, how do you decide which company car is right for you? Check out our Top 10 company lease cars list to help you find your next car.
Find out more about Car Leasing by calling Nationwide Vehicle Contracts on 0345 811 9595 to speak to one of our skilled leasing specialists about the right option for you.
