Foods & Culinary
What You Should Know About Owning a Company Car
You find that buying a company is essential as it will help in making some business tasks easier. 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. By the end of this topic, you will discover more things about owning a company car.
Before you own a company car, you should know whether you want to buy or lease it. You find that buying a car is considered the best option because it gives you complete ownership and also allow you to customize it anytime you need to add value to your business market valuation. 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. 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.
Driving a business car is another decision that you need to make. In this case, you will need to know whether you will drive yourself, assign an employee or staff member or hire a company driver. Like when you are a solo entrepreneur, you will assign yourself and assign an employee when you have many 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. It will be challenging to separate business from personal travels when you or your employee is driving.
Also, we also have 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. Therefore, you should purchase enough business car insurance and be ready to learn how to dispute a car accident fault.
Last but not least, we have 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.
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