Cars cost a lot of money. With the current supply chain shortages caused by the global pandemic, even used cars are surging in price beyond what is reasonable for many people to pay. But if you run a business that requires you to own company vehicles, then regardless of the prices, you need to have those vehicles. This doesn’t have to mean that you are hemorrhaging money on your company vehicles, especially if you know the right tactics. Here are a few ways that you can save money over the long term with your company vehicles.
Take Tax Deductions
The first way that you can save money over the long term with company vehicles is by taking the tax deductions available to you for your vehicle expenses. If you are just purchasing a vehicle for your company, you can take a section 179 deduction. This is a deduction for companies who purchase a car, allowing you to deduct almost the entire cost of the vehicle in the first year you use it for your business. Then you can write off things like gasoline, oil, tires, insurance, and even depreciation to save money on your taxes every year with your company vehicles.
Keep Them in Good Condition
Another way that you can save money over the long run with your company vehicles is by keeping them in good condition. The better care you take of your company vehicles the longer they will last. If you can get an extra few years out of your company vehicles, that can save you tens of thousands of dollars. Make sure that you are caring for your car properly, however. Using the wrong products can cause interior damage to your car. If you have leather interiors, you need to use cleaners that are appropriate for leather without damaging them.
Monitor Personal Use Closer
The final thing that you can do to save money over the long term with your company vehicles is to monitor your employees personal use closely. Any personal use of a business vehicle is an expense that your employees are required to pay, but only if you are documenting both business and personal use. By setting up stricter policies regarding personal and business use of company vehicles, you can make sure that your vehicles are only being used for business purposes, and that other uses are being paid for by employees, not your business.
A company vehicle or fleet of company cars is a major responsibility. But if you know how to manage your cars properly, they can even save your business money. Follow these three tips, and you can save tons of money on your company vehicles in the long run.
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