If you are lucky enough to snag a company car from your employer then be ready to enjoy some financial benefits for you and your family. Company cars are a fantastic work perk that doubles up as a money-saving giant in your daily life.
Whether you’ve had multiple company cars or this is your first, read on to discover how accepting this work perk can benefit your entire family.
Simple replacement for your old family car
This is dependent on whether your company allows you to use your company car privately. So, always check with them first. But assuming you get the green light from your employer, a company car can be an inexpensive solution to replacing your old family vehicle.
Switching the family car might not be for everyone, especially if you have formed a sentimental attachment to the old thing. But sentiments aside, a brand new company car would be much better for holiday travels, weekly shopping and shipping the kids off to school.
It’ll be far more reliable than your old banger, plus a new shiny motor is something to show off. Particularly when it hasn’t cost you a penny so far.
However, you are expected to pay an additional tax called Benefit In Kind. Perk or not, your company car will be viewed as an indirect financial benefit on top of your salary. But not to worry, many unforeseen costs like this can be offset by any overall savings you make during your ownership.
Cheap fuel is always a plus
The major benefits of any company car are largely financial. And when you can use your personal life, this big plus is magnified tenfold. This is seen most regularly in terms of fuel consumption and it’s inevitable cost.
Rather than any significant expense coming out of your pocket, often employers can foot the bill by using a tool known as fuel cards.
Fuel cards on the face of it are credit cards used to pay for fuel. But your company can take advantage of numerous other benefits such as discounted fuel agreements. Which holds major benefits for you and your family, because the largest cost of maintaining a car is suddenly cut from your regular outgoings. With all this extra cash, maybe it’s time to start saving for an extra holiday?
This also makes a lot of business sense as many fuel cards produce digital HMRC approved receipts. So companies can easily claim expenses without having to waste untold time on admin tasks. Better yet, you won’t be shouted at for losing receipts down the armrest either.
Maintenance costs are often your employers’ responsibility
Another big headache of car ownership is maintenance. At some point, we will all be stuck on a hard shoulder waiting for the recovery van with our partner and kids. But one silver lining is that with a company car, you won’t be expected to pay for the mechanical error which has held up most of the M4.
When you agree to take on a company car, often your employer will be responsible for its maintenance. This is particularly great because small fixes like worn-out tyres, oil changes, and air-con refills can accumulate into quite an expense.
Many companies will even cover your insurance. Which would have otherwise cost you a large sum of money, or your no claims bonus.
With these savings, you could start allocating funds into home improvements, day trips, and other memories you can fondly look back on.
Recommended reading: 6 PCP Finance Tips for a Better Car Deal