Company cars are extremely common these days, especially once you get to the executive level of the market. A many as half to three quarters of luxury cars are company cars, which goes to show just how popular they are as a method of funding a vehicle. If it’s an option for you, then it’s one that you should be seriously considering.
For those unaware, company cars are leased through your employer. Quite simply, you are given an allowance which can contribute to or cover the monthly payments for a vehicle, and the car is yours to use for the life of the agreement, though you don’t own it. This is all arranged by a leasing company such as car4leasing.co.uk.
The major benefit of this method of funding a car is the lower payments. In addition to the fact that there are contributions coming from your employer, you’ll also be paying less per month as a cost than if you were financing the car through a loan or similar. This is because you’re not paying for the whole list price of the car – you’re just paying for the use of it over a given period. You won’t have the car at the end of the contract, but then this also means you don’t need to worry about selling it on, or accounting for depreciation.
Ultimately, things work out a lot better for you financially than if you were trying to finance things yourself. The upshot is that you’re far more likely to be able to afford a car in a higher price bracket – this is why many entry-level execs are able to afford things like the BMW 3 Series or Mercedes C-Class.
Of course, the lower monthly payments are not the only benefit of choosing a business lease. There are many different plans available, and some of them will give you all manner of benefits to make things as easy as possible for you. This can include things like warranties, maintenance and even tax or fuel. The idea is that you don’t need to worry about anything – you make one monthly payment, deducted from your wage, and everything is sorted for you.
If your company offers a car allowance as part of your compensation package, then it’s definitely something that you should consider. Not only will it allow you to save money; it’ll get you a better car too.