Solutions for Business, frequently asked questions

What makes a good company car or business car scheme?

Meeting the aspirations of drivers can be an impossible challenge.  The only way to ensure that your car scheme is benefiting your business and employees is to follow a proper process and not go for quick easy fixes.

Should we lease or buy our company cars?

Unfortunately too many companies make this decision without a full understanding of the facts. To make the right financial decision we need to look at the way the tax rules of each product impact on your finances and cash flow position. To do the sums we normally use a discounted cash flow model which gives a fair financial comparison.  We sometimes find that the best financial position isn’t the most practical for your company. If this is the case we can work through the potential solutions and associated implications.

Isn’t it better to pay cash if we have it?

This often looks like a good solution, but 9 times out of 10 we find that any spare capital is better invested in your core activities. Also, unlike buying a car for cash we are entering into a long term relationship with you allowing you to benefit from our expertise and purchasing power.

Wouldn’t I be better just giving everybody a cash alternative and getting rid of company cars?

For some companies this may be the case. However with the current and proposed company car tax rules and wealth of new legislation many businesses are discovering the company car gives fewer headaches and potential risks than cash. We find that smart companies will usually be better off using a mix of both cash and company cars in a properly considered scheme.

If we decide to give cash alternatives how much cash should we give?

Do you want the employees or company to be neutral financially? Should you pay as much allowance as possible by AMAP rates? If you want drivers out of company cars wouldn’t it be sensible to use cash as the influencing tool? Without knowing the answers to questions like these the how much cash question is impossible to calculate. We believe that many companies are paying cash allowances far in excess of what is really required because they didn't consider all the facts.

If we give cash alternatives what risks do we still have?

Probably just as many as when you give company cars. The list of horror stories associated with drivers using their own cars for business purposes is growing but luckily it often takes just some common sense to avoid them. Business Car Finance can take through this process and if required introduce you to specialist consultants.

Does the cost of a truly green car policy outweigh the good PR?

No. Running a green influenced car policy usually only restricts certain vehicles from your fleet but brings considerable financial benefits to both the company and driver.

What advantages do we get using Business Car Finance instead of a traditional leasing company?

We would say many but the top three have to be expertise, independence and purchasing power.

How much do your consultancy services cost?

Normally nothing as we make our money from the leasing companies and manufacturers. However if you want us to charge a fee and then arrange service suppliers separately we are happy to discuss this.

Wouldn't I be better talking to my accountant for funding and financial advice?

By all means do so, but remember that this may not be their area of expertise. We only deal with business car matters and pride ourselves on our background and industry knowledge. If you want us to discuss any matters with your advisers directly we will be delighted to assist you.

Can Business Car Finance help our drivers who want to move away from a company car?

Definitely. Indeed this is often a very wise approach as you know that your employees are using a company that understands the market and will help them make the right decisions. We can also set up your terms for cash adopters on our systems to help police your business requirements.

What facilities can Business Car Finance offer?

We can offer all methods of business and personal finance as well as full consultancy services including fleet management, risk management, environmental reviews, salary sacrifice, sale and leaseback and full financial reviews.