A company car? Of course you want one! Why wouldn't you when it eliminates the hassle of owning a vehicle? Plus, it looks cool and you can pay for a more expensive model without incurring the costs. A company vehicle is the way forward for most employees.
However, you should never judge a book by its cover. After all, it's meant to be a perk, yet there are quite a few disadvantages, such as the amount you have to pay if it has a diesel engine and emits greenhouse gases.
There are plenty of other options worth considering, and here's why you should.
The Expenses
The average employee assumes the costs are taken care of by their employer, and the latter doesn't do much to dispel the rumours. Unfortunately, you're still on the hook for road tax, insurance, and the vehicle's upkeep, not to mention the fuel. Sure, you get the petrol money back, or you can claim it as tax, but it isn't necessarily cheaper to do so. Many workers realise they are onto a bad deal once they have agreed to the benefit, and by then it's too late. If the fees are too high, you should steer well clear.
Leases
What you want is a nice car you can drive to the office without worrying whether it will break down every two minutes. That's not much to ask, yet it feels like it is when you try and buy a vehicle with the ideal properties. Dealers charge you a fortune, which is why people believe it's better to go with a company motor. Not true. Affordable car leasing deals are often less expensive than finance offers or purchasing a vehicle outright. Plus, there are included extras, such as services you don't get when you own a car.
No Choice
You might not get a choice in the matter, and that's dangerous. Why? It's down to something called the 'Benefit in Kind' tax rate or BiK. If the car's value is high, the BiK, which you pay for, won't be small. Therefore, you could be stuck with something you don't like that costs a fortune in tax. The best way around it is an electric engine since they aren't taxable, yet most companies attempt to keep their exposure low by investing in what they know. Unfortunately, paying for petrol is cheaper in their eyes than installing a charging point in the car park.
The Implication
To be a driver of a company car, you have to use it regularly. Otherwise, it's counterproductive. Firstly, this puts you in the tricky position of being a lackey for meetings and other brand events if nobody else is on the insurance. So, you could find yourself working more as a result. Secondly, in an era where working remotely is high on an employee's agenda, a car is an implication you'll be in the office all the time. There are plenty of ways to cut your commute and gain independence, but working from home is the best!
A company car is supposed to be a perk, so you must make sure it benefits you before agreeing.
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