Things to Think About Before Getting a Company Car


There is a lot to consider before buying a company car. The benefits of getting and using a company car can be beneficial to a lot of companies and their employees. Employees who have a company car are usually willing to tell their friends and family about their work and how nice it is to have and use a company car.

Of course there are many reasons to get a company car. There can be logistics and the kind of work that you do may require a number of different cars to get the job done.

Before you go to the car dealership and get several different cars for your company here are some things to consider before making that purchase:

What Kind of Car

Cars come in a lot of different shapes and sizes and while they all serve different purposes not all cars be a good fit for your company. If you are a construction company it would not be smart to buy several compact environment-friendly cars because you will not be able to carry all of your equipment with you.


If you are a company that deals mainly with real estate you probably do not need a fancy dodge challenger that is sporty and flashy. The best thing to think about is what you will be using the car for. Once you determine what you are using it for you can narrow down your options and choose a car that is a good fit for your company.

Who Will Use It

If a business owner is using the car there are several things they have more control over. They get to decide how many miles are put on it and what it is being used for. If an employee is using the car it can still be monitored but the boss will not have complete control over what happens to that car.

Insurance can also be another factor to consider when deciding who will use the car. There are different rates and options that can change how much insurance will cost when deciding if an employee or an owner get to use the car.

Buying vs. Leasing

There are benefits to both buying and leasing a company car. Buying gives you the freedom of owning the car and not having to worry about what the terms of the lease are and how long you can use the car before the lease is up.

Leasing can give you different options that may be a perfect fit for your company needs. There are usually closed and open leases. You can decide what you need in terms of car mileage and time and then return the car after the lease is up.


Having a company car is a great feature because there are a number of things that can be written off as tax deductions. The car itself can be written off as an asset for the company that owns it. If the employee uses the car but does not own it they will not be able to write it off as an asset.

Keeping track of mileage and use is also important because you can make these items deductible if they make up more than 2 percent of an adjusted gross income.

Other Factors

Your competition is real and can give you a serious run for your money when it comes to company cars. If your company car is a little older and looks worn down their new fancy cars can have a real advantage to winning over customers.

While you do not need every extra add-on or feature there are some car features that do serve a good purpose. If you are driving to different places around town you may need a GPS of some kind. If you are dealing with rough weather conditions you may need four wheel drive and some snow tires.

Do you have a company car? What do you use it for and what are the pros and cons of having company cars? Comment below to start the conversation.