3 Tips from Someone With Experience

Essential Tips for Owning a Company Car

One good thing about buying a company car is that it makes some business operations simpler. But you find that there are people who are looking forward to buying a company car even though they are not sure whether it is a good idea or not. Here are some of the points that will help you learn info about the bottom line of owning a company car.

First of all, you should consider or buy a company car. One good thing with buying a car is that it gives you complete ownership, you can as well customize when you feel like to market your business and many more. On the other hand, you will have to spend a lot of money on buying a car as well as maintaining and repairing it when damaged. While with leasing you will be able to drive a car without owning it by paying an initial deposit followed by monthly deposits throughout the lease period. But one bad thing with leasing is that the cars have mileage restrictions, the prohibit customization, and you can also incur additional charges if you terminate the lease before expiry.

Apart from that, let us look at driving a business car. Where you will have to decide to drive yourself, assign an employee, a staff or hiring a company driver. For instance, when you are a solo entrepreneur, you will drive yourself, but you can also assign an employee if you have several employees. In addition, when you need to track the business expenses, it will be better to have a driver that is in the staff as they can be instructed to use the car strictly for business duties. But when you or your employee does it, you will find them mixed between business and personal travels.

Apart from that, you should also know about business car insurance. You find that company cars always have minimum auto insurance coverage which is not enough cover for a business car. Let your driver get involved in an accident with the minimum coverage is when you will see the insurance company avoiding the incidence and the other party can also sue you for damage when your driver was wrong. In this case, you will have to purchase enough business car insurance also learn how to dispute a car accident fault.

Apart from that, we have tax implications of owning a business car. It is essential to note that IRS allows you to deduct the costs that are associated with using the car for business such driving between work sites, meet clients, attending business meetings as well as using it for charitable purposes.