Whoever gets there first, wins. This has always been the guiding principle for many businesses. In its most literal sense, whoever is the fastest to arrive at the doorsteps of prospective customers has the biggest chance of closing a deal.
This means that mobility should not be a problem when you have a business that thrives on delivery. The Driver and Vehicle Licensing Agency revealed that there are more than 31.5 million registered vehicles in the United Kingdom and approximately 20% of them are classified as company vehicles. So, if you are a business owner, you may already be contemplating on getting one for your business. But is today the right time to start your big invest? How do you know when is the right time to buy a vehicle fo your business?
Know What Qualifies for Tax Breaks
When deciding on what vehicle to buy for your business, you need to consider whether it qualifies for a tax break or not. Think about how you intend to use it and whether you should get a used car or a new vehicle. Remember that buying a brand-new vehicle is oftentimes the best options but also take note of how much you’ll be savings in the long term. Try to consider all aspects including taxes and amortization costs to see whether leasing or buying is the right choice for your business at your current standpoint.
Use as an Incentive for Employees
Company cars can be used as an additional incentive for loyal employees. In return, this can give you large benefits in terms of employee loyalty and increased productivity. Studies have shown that being allowed to use or even given a company car increases the productivity of employees by as much as 30%.
Most employees are not that concerned whether the company provides them with a brand new or used vehicle to drive during business hours. For them, the most important factor is that they have a vehicle to use when performing their daily tasks for the company. However, you can only claim business expenses if you or your employee uses the car for official services. This means you cannot deduct as a business expense when the costs incurred due to personal use.
Free advertisement for your business
Businesses that provide company cars for employees can always include their logo and taglines on the vehicle. This can become an effective advertising medium for your company. Every road the car takes, so does your company logo. In this sense, your corporate image as well. This allows potential clients to take note of your business marketing. Just be sure to to take every mile as every business mileage is worth $0.56 as a deduction.
With all the benefits of buying a business vehicle, should you invest in one today? The answer would largely depend on how your business is currently doing. If you believe that your company would profit from buying a new or used car, then now is the right time to get started.