Why used cars are a sensible choice for company vehicles

As a business owner, having a company car can be hugely beneficial, especially if you spend a lot of time on the road heading to client meetings and networking events.

If you’re looking to replace your current car or buying your first company vehicle, consider a used car for your next company motor. Here are some reasons why these pre-owned models could be a great fit.

Financial benefits

Financial savings are one of the main reasons why you might want to choose a used model. New cars typically depreciate by as much as 35% in their first year alone. This rapid drop in value means that businesses can purchase used cars at a significantly lower price than new ones, without a corresponding decrease in reliability or functionality.

Savings can also be found in insurance premiums and reduced vehicle registration fees. While it’s not always cheaper to get cover for a used car, your chances are better if you get a model that’s not considered as valuable.

Recent models

Many used cars tend to still be very new models, often released by car manufacturers within the previous few years. So, you might be getting a more affordable used motor that has the very latest gadgets and spec from the latest generation.

For instance, if you’re researching the latest used BMW 2 series for sale, you’ll find sporty designs, the latest safety kit, real time traffic updates and other features. All of this is available for a fraction of the original price and you get to drive one of the most-loved car makes in the world.

Tax incentives

Tax incentives and depreciation benefits re another advantage of seeking out used models. In the UK, businesses can claim capital allowances on the purchase of used vehicles, allowing them to deduct a portion of the car’s value from their taxable profits each year. This can result in significant tax savings over time.

Also, because used cars depreciate at a slower rate than new cars, the financial hit taken on resale is often less severe. This can be particularly advantageous for businesses that frequently update their vehicle fleet, as the lower depreciation helps maintain better residual values.

Environmental considerations

While petrol and diesel cars remain les eco-friendly than electric vehicles, choosing a used car over one that’s hot off the production line means that you’re extending the lifecycle of existing cars, reducing the demand for new car production.

Additionally, the introduction of more stringent emission standards means that even older used cars on the market today are much more environmentally friendly than in the past. For instance, cars that meet the Euro 6 emissions standard, which has been in effect since 2015, produce significantly lower levels of harmful pollutants.

Used cars can be an excellent choice if you’re looking for a company car. Which model will you choose?