• May 23, 2023

  • Abby Nuttall

  • Driver Articles

We know that getting a new car can be an exciting and nervous time which is why we want to help drivers be as prepared as possible.

What to Check Before Taking a Company Car

There are a few things you should check before you take a company car from your employer to make sure that it is the right decision for you.

Firstly, you want to check the financial implications for you. Whether you’re taking a vehicle as a benefit, via a salary sacrifice or car allowance scheme there will be some financial impacts. These can include:

  • Reduced take-home pay
  • Benefit in kind (BIK) tax payments starting / increasing
  • Increased tax on increased income

Any changes to your income can have an impact on the rest of your life and it’s important to consider these realistically and whether you have any other upcoming lifestyle changes that could make taking a company car less viable.

Secondly, you also want to consider any conditions on the benefit. Some businesses can offer a company car as an incentive for employees but only if they reach and maintain particular performance targets, this is especially common in sales roles. It’s important that you really think about any conditions on the company car and make sure that you can realistically meet them.

You’ll also want to think about your current vehicle and what you will do with this if you do accept a company car. Factors to consider include:

  • The running costs (including fuel, insurance, tax, any parking charges etc)
  • The cost of an early termination if it’s a PCP or PCH agreement
  • Storage of the vehicle if not in use
  • If keeping your current car as well then running it regularly to prevent damage from under-use, such as the DPF becoming clogged on a diesel car, the brakes seizing or similar issues.

For a more detailed look at whether a company car is right for you take a look at our recent article which helps answer this question for you.

What to Check Before Your Company Car Delivery

There are also a few factors to consider before delivery but after you’ve decided that a company car is right for you.

The car itself – body shape, trim level and any optional extras to make sure that it’s suitable for you now and will continue to be in the future.

The agreement length – your company car benefit might be for a set period, especially if it’s a leased vehicle, and you’ll want to think about how you foresee your vehicle needs changing over that time. For example, if you’re planning on having a family then you will want a more child-friendly model.

Once you have the contract in place and the vehicle is on the way there may be a few additional details that you want to get as the process progresses. For example, some people will need the registration number for parking permits, some will want more information on allowing their spouse to drive the vehicle and some may want to know the specific spec so they can research the features. You’ll be able to ask these questions to your fleet manager so that you’re fully informed before the delivery day.

What to Check When Your Car Arrives

When you get a new car there are a few things that we recommend all drivers check to make an accurate record of the vehicle’s condition on delivery and to make sure the vehicle is safe and suitable for them.

Delivery Inspection Checklists

  • Any damage to the exterior of the vehicle (including paintwork, tyres and wheels, lights, plates and the roof)
  • Any damage to the glasswork (inside and out)
  • Any damage to the interior of the vehicle (trim, seats and fixtures)
  • That all lights work correctly
  • The infotainment system is functioning correctly (including the sat nav)
  • All necessary paperwork is there (what this includes will depend on the type of agreement for your company car)
  • The delivery mileage (if you have a mileage allowance it’s important to have a record of your starting mileage)
  • Fuel level (you may need to fill up soon after delivery)

With a new car, you’ll also want to make sure you know where all the controls and key features are so that you can safely operate the vehicle before driving. It will also help you work out the differences between your new car and your previous vehicle as well as to know what changes you’ll need to make in your driving.

There are a few aspects you’ll want to check soon after delivery such as the tyre pressure, and the fluids levels. You’ll want to allow a little time before checking these as the engine being hot when checking fluid levels is dangerous, and the tyre pressure will be different after a long drive as the air in them will be hot.


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