Company car benefits: save and drive in style
Employees in the Netherlands sometimes have the option of getting a company car, and this can bring significant benefits. In this article, we will discuss some of the main benefits of a company car, from financial savings to driving pleasure.
1. Financial benefits
One of the most notable advantages of a company car is the financial savings it brings. In many cases, driving a company car is significantly cheaper than owning your own car. The income tax charged on the private use of the car is often less than the total cost of owning a car. Even if the employer charges a contribution for private use, it is deducted from the additional taxable income, so you pay less tax than if you owned your own car.
2. Save on fixed costs
Getting a company car can also help you save on fixed expenses. Buying your own car often involves thousands of euros in costs, including the purchase price, insurance and maintenance. With a company car, these costs (usually) disappear from your budget. You do not need to take out car insurance, as the car is owned by your employer and they are responsible for insurance.
3. Fuel card
Some employees even receive a fuel card, which means you don’t have to worry about fuel costs. This provides further financial benefits in addition to savings on purchase costs, insurance and taxes.
4. Ride in style
Companies often give nice company cars to their employees. These company cars are usually of high quality and offer a comfortable and stylish driving experience. So you may find yourself driving a luxury car without the cost of ownership.
5. Pay rise versus company car
For employers, providing a company car can often be more beneficial than giving a pay rise. This means you may save more than if you received a higher gross salary. However, bear in mind that car expenses are not usually considered wages, which can affect things like holiday pay and pension accrual.
In short, a company car offers numerous benefits, including financial savings, lower fixed costs and the ability to drive in style. While there are some drawbacks, such as not accruing claim-free years, the benefits often outweigh them. If you have the opportunity to drive a company car, it can be a smart financial move.
