Company Cars, What’s Best For You?
6th May 2016
Company cars are all about the image that you want to establish for your business. When it comes to how you want clients and partners to see your organisation, the obvious ideals are successful, on the up and competitive. However, you don’t want them to think they are paying you too handsomely for that last piece of work you delivered. That’s why getting the right company car fleet is essential.
Having a fleet of company cars is a minefield – looking at the BIK (Benefit in Kind), whether or not you’ll be paying for private fuel too and of course there is the big one, who gets what. There will always be some jealousy to contend with between counterparts. It’s fairly obvious that you need to give people on the same levels the same choice of cars because, at the end of the day, it is all about fairness. We can help you decide between the cars for the head honchos and the little city run-arounds.
- Top Echelons - The CEO, CTO and CFO, the big cheeses of the company expect to be in premium vehicles, the best a manufacturer can muster. As you would expect, the big Audis, BMWs and Mercedes are at the top of this list. However, just for the tax break it offers, the Tesla Model S has to be the pick of the bunch. Not even a penny to be paid in BIK tax on this purely electric car. You can show off its great 17 inch touchscreen controls, open up the all-glass panoramic roof and relax in this beautifully made, comfortable executive coupé.
There are plenty of other options for those with no desire to save the planet. The Audi A7 is a wonderfully sleek car that doesn’t break the bank, especially if you get the 3.0-litre diesel V6.
- Middle of the Road – In previous years, the middle management would be expected to settle with mid-range Ford, Vauxhall or Volkswagen, however these days it has become more financially sound to invest in the affordable premium sector – this means 5 series BMWs and the Audi saloons. This isn’t just a case of employers being more generous – it is all about the resale value of these vehicles. They don’t depreciate anywhere near as badly as the Fords and Vauxhalls. When getting a fleet of vehicles it is all about the residual value. The best pick of these are the Audi A4 Ultra range as they offer great tax breaks and efficiency. other good choices are the BMW 520d and any of the C-Class Mercedes.
- Young Blood –Trying to keep the costs to a minimum with these as you want something with at least some credibility because nobody wants to be associated with a lemon of a car. The best option which falls below the £15,000 mark is the Ford Fiesta, probably the best super mini on the market – great looks, handling and a low BIK tax band to boot. Other good choices are the Mini One and Suzuki Swift. Expect to see the estate agent that shows you around your next house to be driving one of these. Well, it will either be that or a Smart car.
These are a few ideas for the next time you have to update your company fleet. Just remember that the tax and residual value of the vehicles should be your main priorities. But choose very carefully – in the words of Sam Walton; “Outstanding leaders go out of their way to boost the self-esteem of their personnel. If people believe in themselves, it’s amazing what they can accomplish”.
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