Second Lockdown: Is It Time to Get a Company Car
This month is seeing our second full lockdown of the year so far. This, of course, is essential to minimise the spread of coronavirus and Covid-19 across the nation and to keep the R rate down. But at the same time, it’s bad news for businesses of all shapes and sizes. A lockdown means that you’re, once again, going to have to alter your operations. Right now, many companies are making countless decisions about how to give operations the best chances of continuing and in order to maximise profits during these difficult times. A question that many businesses have right now is whether they should consider investing in a company car. Public transport is restricted right now and if you have staff who can’t work from home – or you’re a business offering essential goods and services so need to continue to work – you may feel that a company car is a good investment that keeps you and your workers as safe as possible. The main aspect that will determine whether a company car is a good investment right now will be cost. All cars come hand in hand with different costs, so you need to ensure that your investment is affordable. Here are a few costs you need to remember you’ll have to pay!
The Cost of the Car Itself
The cost of a car itself is going to be your main vehicle related outgoing when you invest in a company car. Chances are you won’t be buying your chosen vehicle outright. Most companies want a car that will do its job and that can be traded in for an upgrade at the end of each contract. Generally speaking, pcp will be the favoured way to pay. This means paying a monthly sum to pay the depreciation on the value of the car. Take a look at different pcp options to find the plan with the best interest rate available before invested.
All vehicles need to be insured. So, consider who’s going to be driving the vehicle and get quotes for all necessary drivers. It will cost different amounts to insure different vehicles, so compare different vehicle insurance costs before choosing a make or model of car. Once you have pcp and insurance costs you could determine whether monthly outgoings on the car are feasible. If your business will be using your car to transport products, or if you plan to hire out your car at all, you will also need Hire & Reward Insurance.
Now you have the monthly costs covered, you need to consider occasional costs. Vehicle maintenance is going to be something you may pay out for down the line. Whether that’s spare parts, replacing a tyre, replacing brake pads or anything else, you need to make sure you have enough available after monthly payments to cover maintenance if necessary.
Sure, running a car isn’t always cheap. But it could provide you and your staff with a safe and easy way to get from A to B during the lockdown if your business still needs to operate!