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Is a sports car worth it as a company car?

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Recently updated on March 15, 2023 at 12:45 am

Is a sports car worth it as a company car?

For executives and business owners, a sports car is often a popular choice as a company car. It conveys a high degree of exclusivity and is considered a status symbol. Before making a purchase, however, it is important that some criteria are observed. The Insurance is one of those factors. A sports car usually reaches a higher speed and also causes an increased risk of theft due to the higher value. That is why insuring a sports car is slightly more expensive than a classic company car. It makes sense to take a closer look at the different insurance options before signing the contract. Thus, a suitable option is found for every driver or every company.

Control the sports car as a company car!

Is a sports car worth it as a company car?

An important criterion is the vehicle tax. When it comes to purchase and running costs, sports cars are generally more expensive than other vehicles. Before deciding on a sports car, entrepreneurs should find out about the tax implications. If a sports car is used as a company car, entrepreneurs can take advantage of tax advantages. However, it should be clarified beforehand that the tax advantages are fully understood.

Tax advantages through 1% regulation

If companies in Germany use a sports car as a company car, this can be claimed for tax purposes. The 1% rule is often used. This means that 1% of the gross list price can be claimed annually as an operating expense. With a flat-rate 1% rule, the employee pays monthly flat-rate tax of 1% of the gross list new price for private trips. As a result, all private trips made by the employee are also taken into account for tax purposes.

Operating expenses may also include costs for maintenance, insurance and repairs. In order for the tax office to be able to check all expenses properly, they must be fully documented. The 1% rule is often more effective for tax purposes than the logbook method. This is the case when the annual mileage is very high, the distance between work and home is short, or the sports car is used privately a lot.

The classic logbook!

In a logbook all business and private trips are entered. Proof is important in order to take advantage of all the tax advantages that are possible for a company car. A logbook must always be filled out in detail. Important information such as the kilometers traveled, the purpose of the trip and the people traveling with you must be entered promptly. The tax office primarily checks the companies that use a sports car as a company car. A distinction is made between logbooks in electronic and handwritten versions and a logbook app. You should always choose the variant that is easiest to integrate into everyday work and that is of course approved by the tax office. In addition, it must be ensured that the entries are always up-to-date and complete.

Is a sports car worth it as a company car?

What must be considered when buying cash, financing and leasing?

When buying a sports car as a company car, entrepreneurs have various options to choose from, such as cash purchase, financing or leasing.

cash purchase

  • The sports car is paid for in cash with a cash purchase. Since there are no interest or monthly installments, the cash purchase offers full cost control and high flexibility.

Is a sports car worth it as a company car?

Financing

  • If the sports car is bought on credit, it is financing. With this variant, interest and installments are incurred, so that the purchase price is slightly higher. Financing gives companies the opportunity to make a larger investment without having to pay the amount all at once.

Is a sports car worth it as a company car?

Leasing

  • Sports cars can be rented by leasing for a certain period of time. Here, too, monthly installments are incurred. They are usually lower than with a classic loan. Incidentally, during the leasing period, the entrepreneur does not count as the owner. After the end of the contract, the sports car is returned to the leasing provider. Such an option is particularly interesting for companies that want to remain flexible. When leasing, you are only tied to the vehicle for a certain period of time.

Is a sports car worth it as a company car?

Which option is the best choice for the company depends on various criteria such as financial goals, cash flow or the desire for flexibility. In order to weigh the pros and cons of the options for your own needs, a thorough examination is important. A financial advisor can provide valuable advice and support the company in its decision-making process. In general, it is appropriate to know the three options when a sports car is desired as a company car. Entrepreneurs should understand which factors should be given special attention, such as taxes and insurance.

Is a sports car worth it as a company car?

Are you planning to buy a new car and are you therefore looking for financing? Or should the modified baby and its attachments simply have the best possible insurance? Then ours Credit, financing, leasing, insurance & Co. categories exactly the right place to go for information. And also cheap financing for Accessory parts is there. Is the new one forged wheel, the planned Airride air suspension or the one you want foiling too expensive? Then a little one might help Financing in the process of implementing the modification on the vehicle. And also the topic Leasing or the vehicle sales are not neglected here. Just click through the posts and get the answer to your questions.

Of course, that wasn't the end of it!

tuningblog has countless posts on the topic Credit, financing, leasing, insurance & Co. in stock. Do you want to see them all? Just click HERE and look around. The following is an excerpt from the last contributions from this category:

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About Thomas Wachsmuth

Thomas Wachsmuth - He has been an integral part of tuningblog.eu since 2013. His passion for cars is so intense that he invests every available penny in them. While he dreams of a BMW E31 850CSI and a Hennessey 6x6 Ford F-150, he currently drives a rather inconspicuous BMW 540i (G31/LCI). His collection of books, magazines and brochures on the subject of car tuning has now reached such proportions that he himself has become a walking reference work for the tuning scene.  More about Thomas

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