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Using a business car? Here’s how to save money

There is a wide range of contexts in which a set of wheels can be invaluable to business, ranging from courier companies or car rental companies such

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There is a wide range of contexts in which a set of wheels can be invaluable to business, ranging from courier companies or car rental companies such as Limo Find, with their reliance on cars and vans to deliver goods quickly to buyers, all the way to luxury vehicles, such as limousine, which is used as luxurious passenger transport.

But if a car plays an integral role in your own business, the consequences of the COVID-19 crisis may have made you think about the huge costs it represents, while wondering what you can do to reduce it.

Well, here are some suggestions.

How to save money with a business car

How to save money with a business car

1 # Consider whether your car still meets your needs

Of course, if you are in financially distressed circumstances, the thought of investing in a new vehicle to replace one that no longer meets your requirements can be a bit tiring.

However, the coronavirus pandemic has devastated much of our working lives, and it is quite possible that certain features of your existing business vehicles – such as comfort, passenger capacity or cargo space – may have increased or decreased in importance to your business.

2 # Take advantage of any available tax relief

Taxes can, well, be taxes, even for those of us who think we are ‘good with numbers’. It is therefore worthwhile to look again at what tax concessions may be available for the cars your company uses.

As the Talk Business website explains, you may receive a tax deduction if you only use your business vehicle part-time, the car is adapted to promote mobility, it is used only for business rather than personal purposes, and / or it has low CO2 emissions.

3 # Switch from general insurance to more specialized insurance

Cars used for business purposes can of course vary greatly across the different sectors in which they are needed, and it may be the case that the insurance you currently have for your business vehicle is not a brilliant match with the level or nature of the protection what you do not have. require.

For example, standard private rental insurance is not the same as limousine insurance, which is specifically designed with limousines in mind. Not only private rental coverage, but also passenger liability and the higher cost of repairing and replacing such a vehicle are taken into account in a limo insurance policy.

As for how you can reduce the cost of your business’s limousine insurance, the experts in specialist coverage at MoneyBeach suggest that a cleaning management license and positive claims history will help.

But to further reduce your premiums, you can also consider the benefits of a limited mileage policy if it matches how often you use the vehicle, or a classic car policy if the limousine is a classic. There will be low premiums to pay if you own used cars in el cajon for your business.

4 # Rent your business vehicles instead of buying them

How to save money with business car 2

It may seem in some ways more ‘prestigious’, or even just safer, for your business to own its vehicles completely. However, just think of the detrimental effects of depreciation.

Do you really want your business car to depreciate at such a rate that you can not sell it for the money that will enable your firm to buy a suitable replacement at some point in the line?

This is just one reason why renting your business’s vehicles may make more sense than buying – with the smallbusiness.co.uk website explaining that this is another opportunity it offers you to rent your car every three or four years to upgrade to the latest model.

What’s more, your monthly rent payments may not be as high as the payments on a loan for the same model car would have been. Renting can therefore give you access to a vehicle of higher quality than would otherwise be possible.

Final words

While your business car can be a very significant expense, there is still plenty of room to shave off cents and pounds from your related expenses each month.

Follow the tips above, and you might be surprised at how much money you can set aside for your business that can be crucial in the uncertain times ahead.

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Writer: Edwin Owusu Peprah

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