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What You Should Know About Owning a Company Car

One good thing about buying a company car is that it makes some business operations simpler. You should also know that many people who would like to buy company cars but they are not yet sure if it is the right move. By the end of this topic, you will discover more things about owning a company car.

To start with, you will have to choose between buying and leasing a company car. I can say that buying a car is the right choice since you will have 100{5c6c3f44db849b1fe9f99841a08096c6796ef64ab7005c7f8ab254ff92d69f90} ownership as well as having the opportunity to customize it and use it as a marketing tool. But remember that for you to buy a car you will have to spend a lot of money which will interfere with your business operation plus the maintenance and repair costs. On the other hand, leasing a car will allow you to drive without owning a car of which you will need to pay the initial deposit followed by monthly payments throughout the lease period. Unfortunately, leased cars have mileage restriction, personalization restriction as well as incurring additional charges when you terminate the lease before expiry.

Besides, we have 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. Besides, when you want to track business expenses, it will be better to have a driver who is among the staff who can drive under given instruction. But when you or your employee does it, you will find them mixed between business and personal travels.

Besides, you should also know about business car insurance. It is essential to note that the minimum auto insurance coverage is not enough when it comes to business cars. 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. For that matter, it is necessary that you purchase enough business car insurance and also learn how to dispute a car accident fault.

Not only that but you should also know that there are tax implications of owning a business car. The good news is that IRS will allow you to deduct the costs associated with operating the car for business reasons such as driving between work sites, meet clients, attend business meetings and charity work.