Change company cars? Think about this!

There's a lot to think about when it comes to company cars. What kind of cars should we have, what is our car policy and, when the day comes, how do we best dispose of the cars?

What kind of car should the company buy?

The type of car that the company should buy (or lease) depends on what the car will be used for and whether the company has specific needs, such as a large cargo space, that the car should meet. Once the needs analysis is complete, it is a good idea to review the major cost items.

Depreciation - the largest cost item

Calculated on a new car in the Golf class that is driven 2,000 kilometers per year, the depreciation accounts for 40 percent of the car's total cost. In used cars, the first, and major, depreciation has often already occurred. In order for the car's residual value to be as high as possible when sold in the future, it is therefore important to look after your car. Service the car according to the manufacturer's service interval, repair stone chips and wash the car properly.

In addition, you can make some money by staying up to date on current trends. For example, we at Kvdbil see that car buyers are more and more willing to pay for new technology. If you have the opportunity to buy cars for the company equipped with new technology, it is a good idea – it pays off well on the used market.

What is the difference between a company car and a bonus car?

The difference between these two concepts is a bit tricky and can differ from company to company, depending on how you design your car policy. Below we provide a general breakdown.

Regardless of whether you have a company car or a company car, you can deduct the costs of the car. The difference is whether you, as a private individual or a company, are the ones who will make the deductions. What can make the choice difficult is whether you, as the owner of the company, will use the company car for both work and private purposes.

Driving a company car

A company car is owned by the company and is to be used in business. The company is responsible for all costs associated with the car, but deductions may be made to reduce taxes and thus keep costs down for the company. A company car may be used privately, but as a rule on a maximum of ten occasions per year, which in turn can be a bit difficult to keep track of, and when you use a company car privately, you as a private individual will be taxed on benefits. An important difference between a company car and a company car is that if the company owns the car, the company may make deductions for the depreciation.

Driving a company car

As a private individual, you can use a company car for unlimited private use. If you use the car for work and do not deduct any car expenses, you can receive "mileage reimbursement" from the company. The car benefit is considered an addition to your salary and is taxable, which means that you as a private individual may end up paying more in taxes.

How do you design a company car policy?

The car's purchase price does not give the full picture of what the car will cost you. Instead, start from the car's Total Cost of Ownership (TCO), which includes all the car's costs. TCO therefore gives you a truer picture of what the car will cost you to own. Our colleagues at bilpriser.se have extensive data on the total cost of ownership of different models.

Something that may seem obvious, but is sometimes missed, is to set limits for which car models can be purchased. This is to, among other things, prevent the purchase of models that are difficult to reposition internally. For example, a limitation in the policy could mean that sedan and station wagon models are purchased and not convertibles.

When it comes to what equipment the cars should have, it is good to keep in mind that a lot of extra equipment can significantly affect the car's TCO. However, having said that, many companies design their policies with requirements for certain safety equipment. Examples of this can be City safety, automatic braking, Bluetooth and reversing warning.