What's involved in buying a company car?

Can you buy a company car as an individual?

You can also purchase your company car as an individual. You then buy the car not in your company's name, but in your own name.

By purchasing the car as a private individual, you cannot take advantage of certain deductions. For example, you cannot deduct VAT and the cost of gasoline, maintenance, etc. from tax returns.

What you can do, however, when you buy your company car privately, is deduct the kilometers you drive on business from your profit. You then report these kilometers as expenses for your business. This way your company will have less profit left over, but you will also have to pay less tax on this.

Whether it is more advantageous for you to purchase a company car privately or on your premises depends on the costs you expect to incur. The mileage you drive privately is also important. This is because the additional tax liability can be a large item, on which your company also has to pay taxes. Make a calculation in advance. That way you will know what is most advantageous for you.

Insurance for your company car

What kind of insurance do you actually need as a self-employed person for your company car? And what kind of insurance do you need as an individual?

Insure company car as a self-employed person

Have you purchased a company car in your company's name? Then you should at least have third-party insurance. This form of insurance is in fact mandatory. It only covers the damage you cause to another person. Your own damage is not covered.

In addition, you can opt for more comprehensive commercial vehicle insurance such as WA limited casco and ALL-Risk insurance.

With WA limited hull insurance, in addition to damage to another person, you are also insured for theft, collision with animals, weather damage, and damage caused by fire or explosions. So you are insured for most types of damage.

With ALL-Risk insurance, you are also covered for damages you cause to another person. Do you accidentally drive into the door of another car? Then your insurance will cover this damage.

Keep in mind that you cannot deduct insurance as an expense if you purchase your company car as an individual.

Get your commercial vehicle insurance through Alpina: simple and affordable

Are you considering insurance for your company car? Then take it out now through Alpina! Thanks to our years of experience, we can offer you the best insurance. Do you still have doubts or questions about our company car insurance? Feel free to contact our customer service. They are ready to answer all your questions.

Also read:

• How much is depreciation in company car insurance?
• Own transportation insurance with company car insurance
• Is the electric company car on the rise?
• All-Risk coverage in a commercial vehicle insurance policy
• Accidental occupant insurance in a commercial vehicle insurance policy
• Business car insurance that suits you: do you insure your car on the business or private?
• Additional coverage with commercial vehicle insurance
• Indemnity passenger insurance in a commercial vehicle insurance policy
• WA + Limited casco