September 20, 2023
If you’re looking at a company car or in the process of getting one then our team has put together this useful article to help you understand what will happen and how long it takes.
What is a Company Car?
A company car is a benefit that some businesses offer to their employees whereby they are provided with a car supplied by the business to use for company and personal travel.
If your driver provides you with a car that you can only use for business travel then this would not count as a company car as defined by this article.
How Do I Get a Company Car?
A company car will be offered to you by your employer if you are eligible for one. You will simply need to agree that it is a benefit you would like to take and then follow their company car process to get your new vehicle.
There are two things to be mindful of with a company car. If you are utilising a salary sacrifice scheme then the salary paid to you cannot go below the national minimum wage so you will need to be mindful of how much salary you sacrifice.
Additionally, with a company car you are able to drive for private use you will need to pay a Benefit in Kind (BIK) tax.
The Company Car Process
Getting a company car is a fairly straightforward process but it will depend on your business as to the exact steps you take. Generally, the process will follow the steps outlined below.
1. Your employer offers you a company car benefit.
2. You accept the benefit and will usually need to complete documentation agreeing to the company car programme.
3. You will then be able to select your preferred car from a list of approved models.
4. The employer goes through the finance process (getting a quote, completing a finance application and being approved by the funder). This can take anywhere from a few hours to a few days.
5. The order details are confirmed, and the car is ordered with the dealership.
6. Your employer will complete the finance documents. This is usually done within a few working days of the finance documents being issued.
7. As the vehicle progresses you will usually get regular updates on it. Depending on the car you choose and where in the build and transport process it is this can be a couple of weeks or several months.
8. Once the car arrives in stock any additional items your company requires will be added, for example some companies have all of their fleet fitted with a telematics device, or ask for a driver pack to be in the car on delivery.
9. Delivery will be arranged with you directly, or through the appointed contact at the business, for a convenient date. If you have an existing company car we will also make arrangements for this to be returned / moved.
10. You take delivery of the car. Once it is with you, you will be responsible for looking after the car until it is returned.
Company Car FAQS
Can I Get a Company Car?
This will depend on your employer and is a question you should ask your fleet manager. If Wessex Fleet provides your fleet management then you can get in touch with the team on 01722 322 888 and our team will be able to advise.
What are the Benefits of a Company Car?
A company car can be a great choice for many drivers but it is entirely down to your individual circumstances as to whether the benefits are worth the risks.
The most universal benefits include:
- No personal financial liability
- No concerns over vehicle depreciation
- Majority of vehicle maintenance and admin done by the company
For a more in depth look at the pros and cons of a company car take a look at our dedicated company car driver guide.
How Much Tax Will I Pay on a Company Car?
The amount you’ll pay in tax depends on three factors: your personal tax band, the vehicle’s value and the vehicle’s emissions. You can get a more detailed breakdown in our company car tax guide.
Can I Use a Company Car for Personal Use?
Yes, usually if it is being provided to you as a benefit you will be able to use the vehicle for your private travel as well as business.
Enjoyed this article? Read more of our latest blogs below:
- Fleet Benefits from Hybrids
- Pay as You Go Fleet Maintenance
- Understanding Car Sharing
- Three Things to Know About a Company Car
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