10 Things to Consider When Buying Your First Company Car

Buying your first company car can be daunting and intimidating if you don't know how best to tackle the options. There is a whole host of ways to save you money for the duration of your company car scheme and, subsequently, help your company, too. Take a read through our best advice for buying your company car.

1.Buy smart: We are living in a world of strong economic pressures. Governments and social groups are piling on the pressure to go "green," but is it such a bad thing? When buying your first company car you will probably be covering a lot of miles, so why not buy a car with economical characteristics? Those long journeys on the freeway will seem less tedious when you fill up with gas and find out that the car has used a lot less fuel than expected. The social implications will benefit you, too. Being seen in a gas-guzzling SUV has become something of a clich? -- buying economical is the 21st century way forward for you and your bank balance.

2. Small car = small bills: It seems obvious to say, but the larger the car, usually the larger the bills. Think about what you can and can't afford. It will be you paying for the gas, so why not save a considerable amount of money and buy a smaller car? Hatchbacks could be a good way to go -- they are easy to use, provide you with cheap running costs, and they are simple to park. Plus, unless you have a large family, do you really need the mammoth size of a sedan? Buying small is a great way of saving dollars and yet still keeping some practicality.

3. Choose the right spec: Buying a car can be frustrating, but with a little research you could end up with the car that you want and with the gadgets you want, too! Many car models have different specs and variations that can seem confusing. One variant may have four-wheel drive, another might have extra airbags -- you need to evaluate what you need out of the car and what technology will be a necessity. Cars with GPS or satellite navigation can often hike the price up by a huge amount. If you live just a few miles away from work, do you really need a navigation system? Remember, options are just that -- options!

4. Think ahead: Some companies allow you to buy the company car outright after a number of years of use. So, if this is the case it would be best to consider the future. Will a small car be suitable if you were to own the vehicle for private use? Likewise with large four-door vehicles. You need to consider what the best option will be for the duration of using the company car and then when you own it outright. If you are planning a family, will a small car be large enough to swallow the childrens' toys, diapers, and walkers?

5. Insurance. The new company car may mean you can sell your own car and thus it will seem like you're in the money, but remember that your employer may not include insurance for the company car, which would mean you will still need to insure your new vehicle. So, again, we would advise researching what insurance bracket the company car is under - some cars can be deceiving, so use your common sense and pick sensibly. Just because a car is small doesn't necessarily mean it is low on insurance. Cars like the Volkswagen Golf GTi may be a cheap, practical and small hatchback, but due to its 2.0-litre turbocharged engine insurance will not be favorable.

6. Commuter highway vehicles: Remember, if you choose a vehicle that seats at least six adults, 80 percent of the mileage must be for transporting employees to and from work, and on trips that employees take up at least half of the vehicles capacity. So, if that large station wagon isn't going to be used for the aforementioned activities, it's best to leave it and choose something more suitable. Living within your means is of paramount importance. We all want the best, most expensive luxuries in life, but sometimes its best just to say no.

7. Budget: It would be advantageous to find out what kind of budget you will be working with. Let's be honest, most of us forget about the price until the deal comes to the crunch -- but your employer will want a good deal on their end, so it's best to talk to your supervisor or manager and find out what parameters you are working with. This will not only make your superiors think you are proactive and honest, but it will also ensure there are no nasty conversations after the deal is done. Remember you want to keep the boss happy at all costs.

8. Company car tax: Buying your company car is about balance, and it is of the up most importance that you consider how much CO2 your car produces -- as this has a direct affect on your company car tax. Remember, the lower, the better. Typically, smaller cars have lower CO2 emissions. Big SUVs like Range Rovers and Hummers may be extravagant and luxurious but they produce biblical amounts of CO2 and, subsequently, will produce biblical amounts of tax that you will need to pay.

9. Use the Internet: A lot of us are wary of buying a car online, but in reality, the web can provide you with a great deal when buying your company car. As long as you don't buy the car without seeing it, you should be safe. Some websites offer comparison charts for different cars - this will enable you to see how your potential company car stacks up against other models.

10. Negotiate: When you've decided what car you would like as your company car, you should show some initiative to your employer and negotiate with the dealer. If you manage to secure the company car for less than your employer envisaged, you'll be in their good books and might even be on the Christmas card list - but we can't guarantee that.

That's it. You should now be able to conquer any issues you may have had with buying your first company car. Remembering this advice should ensure you and your company are happy with the agreement and the car. Happy motoring!

-Lee Pickering