Owning a company vehicle could be essential if your job requires you to travel to lots of different places. However, it’s important to keep track of vehicle costs – a company vehicle could end up being a drain on your finances if you’re not careful. Below are a few tips on how to save money on owning a company vehicle.
Consider Leasing a Vehicle
Instead of buying a company vehicle, you could consider leasing one. A vehicle lease can save you costs upfront and could give you access to higher quality vehicles at a more affordable rate. Unlike buying a vehicle on finance, you’re not tied into a debt – vehicle leases can be as short as six months. The biggest drawback is that you don’t actually own the vehicle and therefore cannot sell it, plus there may be restrictions when it comes to modifications. You’ll still be responsible for maintenance and repairs in most cases. The great thing about leasing is that you’ll usually have easier access to newer more reliable vehicles and you can constantly trade these in for new vehicles at the end of each lease.
Track Your Expenses
All driving expenses related to business are tax deductible. It’s worth tracking every expense related to your company vehicle from fuel to parking charges. You could do this by collecting receipts or by tracking these expenses digitally via an app (this guide at TechRadar lists some of the best apps for tracking expenses). Keeping track of all of these expenses could help you to pay less tax at the end of the year. One important thing to note: if you use the same vehicle for work and personal use, you’ll need to find a way of separating personal expenses and business expenses – claiming personal driving costs as business expenses could get you into a lot of trouble.
Search for the Best Insurance Deals
Business vehicle insurance rates can be high. Take the time to shop around for insurance deals looking at sites like One Sure. There are various different ways in which you can save money on business vehicle insurance. Multi-policy discounts can sometimes be worth taking advantage of – by insuring your personal vehicle and company vehicle with the same insurer, you could get a reduction on the rates of both. Certain business insurance bundles may also be able to get you a discount, which may include insurance schemes like business property insurance and employer’s liability insurance. Upping your deductible and paying annually can also save you money in the long run.
Plan Your Journeys to Save Fuel
Before going on a work-related journey, consider your route. Many businesses now use GPSs to work out the quickest and most fuel-efficient routes. This will save you money and help your company to be more eco-friendly. Be wary of planning journeys at certain times when there is likely to be heavy traffic.
Carry Only the Tools You Need
Carrying unnecessary weight in your vehicle could cause you to consume more fuel. This could push your fuel costs up. Try not to store heavy equipment in your vehicle when travelling, unless you need that equipment for the job you’re doing.