How To Choose the Perfect Company Car for Your Business

Today's business world requires much decision-making; however, some are more essential to the profitable existence of your business than others. From operational decisions and recruiting/hiring personnel, you might sometimes find yourself furrowing your brow or scratching your head while you agonise over what might seem like minor decisions.

However, if there is ever a good time to take your time when determining your next step, it's during financial decisions, like choosing your company car. For many business owners, picking your company car might seem minor. Yet, your company vehicle is more than something to be driven; it provides transport for your employees, delivers goods or services, and, more importantly, represents your brand – making choosing the correct one vital.

But, with so many options available for businesses, how do you select the perfect company car (or cars!) for your business? In this article, we outline several tips to help you choose the right company car, from assessing its environmental impact and your budget to considering how the vehicle will tie in with your business needs and career – keep reading to find out more.

Consider Its Environmental Impact

In today's business world, sustainability has become something that businesses dare not ignore. Today both business people and consumers are more understanding of the environmental issues plaguing our planet and are consciously taking steps to lessen their contribution towards them.

Whether it's by reducing the number of artificial materials used, creating a sustainability plan, encouraging remote/hybrid working, or donating or reusing supplies in good condition, there are hundreds of ways to foster sustainability in business.

And with this increased focus on the environment, it is only sensical to apply it to other business decisions like choosing your company car, as it would be a tad hypocritical for your company to preach about going green while cruising around in a fuel-guzzling Land Rover Discovery!

If environmental impact is essential to your company, consider which cars have the lowest emissions while searching for your perfect company vehicle. Your greenest option might be to purchase a second-hand petrol-fuelled vehicle you intend to run for several years or opt for a completely electric company car.

Now, if you've never driven an electric car, you might be worried about the upfront costs of a purely electric vehicle (since they can be pricey!). Yet, if you'd like to reap the benefits without the hefty price tag, you could consider using an electric car salary sacrifice scheme like the one from LV ElectriX, which allows you to choose from a selection of new electric vehicles at a cost-effective price.

Consider visiting their website to learn more about the scheme and its benefits. Or contact a team member directly to find out how their services could help you find the perfect company car for your business without sacrificing style (pun intended!).

Determine Your Budget

Although we all might daydream about driving to work each day in a Lexus LS, a Rolls-Royce Phantom, or any other of the most expensive cars in the UK, when choosing the perfect company car, it is essential that you're honest about your budget.

However much you're allotted to spend on your company car will largely depend on your position and how much the director of finances deems fit for your purchase. Still, you might also have to allow for other considerations.

For instance, how much tax will you pay monthly for the car? How many miles will you travel in the car on an average workday? Will you be the sole passenger, or will you have to transport clients/goods occasionally? What will the fuel costs be? Etc.

Determining your answers to the above questions will make it much easier for you to narrow down the top competitors and decide on a car that is within your budget instead of wasting time looking at ones that are well above your allowance.

As well as considering these considerations, it is also beneficial to calculate the amount of tax when looking at cars that could be potential picks. This can be done by multiplying the car's P11D value (listed price, VAT, delivery, and other extras) by your income tax bracket. But if you don't fancy fiddling around with a calculator, you can find plenty of online ones ready to do the job!

Think About Its Usage

Another consideration to make when choosing your perfect company car is thinking about how often you will use it and what for. Although this might seem like a straightforward question, getting to the bottom of your needs will help you determine what vehicle best suits you and ensure that you don't pick an unsuitable one.

For instance, if you have an office-based job, the most you'll probably use your company car for is driving to and from the office. If this is the case, you'll most likely find that a smaller vehicle would be more practical as your company car, and perhaps even an electric one that is ideal for driving around cities like London and Edinburgh (plus no congestion charge fees!).

On the other hand, if you have a job where you're constantly out of the office, like a real estate agent, land surveyor, or delivery driver, you will spend most of your time out-of-office, driving unpredictable routes and battling the temperamental nature of the British weather. If this is the case, an electric vehicle might not be the best choice for your type of driving.

Suppose you're regularly on the motorway and don't have access to many charging points while on the road. In that case, you might be better with a traditional ICE car, which, although not as eco-friendly as an electric motor, is more suited for long-distance journeys, unfamiliar terrains, and temperamental weather like rain, snow, frost, etc.

Any Additional Features

In today's digital world, we use technology for every aspect of our personal and professional lives. Whether connecting with clients over video-sharing software like Zoom, Skype, or Microsoft Teams or using smart speakers like Alexa, Siri, or Echo Dot to turn on the lights in our homes, there isn't one aspect of our lives technology can't help us with.

And thanks to recent advances in the automotive technology sector, driving is one of those everyday tasks that technology can assist us with. Some of these changes have been instrumental in improving our safety while behind the wheel, reducing harmful emissions released into the air, improving our driving experience, and much more.

However, as fun as these gadgets are, your company car doesn't need every single one. Therefore, while deciding which vehicle would be best for your needs (and the company's!), ask questions about these features and whether they'll make a noticeable difference to your driving experience.

As lovely as it might be to have a brand-new car with cutting-edge technological features, it can come at a premium price which can soon grow old after you've shown everyone in the office, and it's not relevant anymore!

On the other hand, you can find older models of cars with similar features that are much more cost-effective and still offer a comfortable driving experience, so it's well worth understanding what you are buying and not just biting the bullet because it's a brand-new car.