Self-employed company car: Business use of vehicles
10 reasons to get a self-employed company car
A company car offers countless advantages in self-employment, starting from the most obvious: mobility and flexibility. However, a classic company car also has high acquisition and running costs that not everyone can pay. On the other hand, especially when just starting a business, people are pleased about every opportunity to save money, resources and minimize risk. SIXT Business solves the traditional downsides of buying or leasing a car, which gives you all the benefits of a self-employed company car without stress.
Benefit from unlimited access to an extensive vehicle portfolio with the latest car models. When using your self-employed company car, you are ideally equipped for every task and occasion without having to buy or lease multiple vehicles at a time. For example, do you need a BMW 530 Hybrid for your customer appointments as a financial advisor or a Toyota Tacoma to deliver a custom-made order? Whatever task you have to manage, we have the perfect car to go with it, and since we are globally equipped, we can additionally provide for you during global projects.
Do you want to treat your loved ones to dinner after work or on the weekend? Lovely! Your self-employed company car is perfect for work use as well as private use making it incredibly convenient.
Benefit from full financial planning capability and low risk. There are no running costs in financially challenging times due to flexible rental times and an exemption from seasonal fluctuations. As a result, accounting could not be easier!
1. Unlimited access to large vehicle fleet
2. Get the perfect vehicle every time
3. Flexible rental times
4. No start-up costs
5. Worldwide primed for projects
6. No running costs in financially tricks times
7. No seasonal fluctuations
8. Simple accounting
9. Can be used privately
10. Drive the latest car models
Car rental for company cars: An alternative for your business to buying and leasing
High investment and maintenance costs when buying or leasing a car can be discouraging. A company car should offer you complete flexibility and not turn into an unpredictable liability. SIXT Business provides the ideal overall package and delivers distinct advantages to the self-employed. Especially the immediate availability, flexible rental times, and the non-existent residual value loss grant our company rental option with an unbeatable value. Profit from an overall cost reduction, optimized processes, and an excellent price-performance ratio.
| Company car rental | Leasing | Car purchase | |
|---|---|---|---|
FIXED PRICE | ✔ | ✔ | possible |
IMMEDIATELY AVAILABLE | ✔ | X | possible |
FLEXIBLE CONTRACT TERMS | ✔ | X | X |
APPROVAL AND VEHICLE TAXES | ✔ | additional | additional |
COMPLETE INSURANCE PACKAGE | ✔ | additional | additional |
MAINTENANCE + WEAR AND TEAR | ✔ | additional | additional |
SEASONAL TIRES | ✔ | additional | additional |
TRANSFER COSTS | ✔ | additional | additional |
LIABILITY INSURANCE | ✔ | additional | additional |
Company car models for the self-employed
Please note that with SIXT, you always choose a booking class, so that you always get an available, equivalent car.
Self-employed company car advantages summarized
In self-employment, a company car provides many benefits—the most obvious being mobility and flexibility. When buying or leasing a vehicle, however, significant investment and maintenance costs can be disheartening. Overall, a company car should provide you with complete flexibility rather than being an unpredictable and risky liability. SIXT Business eliminates the drawbacks of buying or leasing a car, allowing you to enjoy all the benefits of a self-employed company car without the hassle.
Enjoy unrestricted access to a diverse vehicle portfolio featuring the most up-to-date automobile models. Be well equipped for every activity and occasion without having to buy or lease multiple vehicles simultaneously. Whatever task you have to complete, we will have the ideal vehicle. Benefit from comprehensive financial planning and little risk due to variable rental terms and a lack of seasonal swings. As a result, accounting could not be more straightforward!
SIXT Business offers you an all-in-one package and provides unique benefits to the self-employed. Our company rental option is of exceptional value due to its rapid availability, variable rental times, and lack of residual value loss. Profit from lower total costs, more efficient operations, and a high price-to-performance ratio. A SIXT Business self-employed company car is the perfect solution for small companies, the self-employed, and start-ups. Get the ideal car for your daily tasks and circumstances. Register in five easy steps and get the car you need today. No acquisition costs. Maintain complete flexibility. Worldwide.
Guidance on company car taxes
The laws on company car taxation may vary in every state. If your company owns the car, the financial worth of your business driving is a tax-free fringe benefit supplied by your company. This only applies if the business owns the car.
Tax deductions for self-employeed
When a business owns a company car, it can deduct all associated real expenses. These can include, but are not limited to: depreciation, car loan interest, and insurance charges. If your firm is a pass-through organization (e.g., a sole-proprietorship, a limited liability corporation, or an S-corporation, among others), these deductions can reduce the amount of taxable profit passed through to your tax return. Otherwise, these expenses cannot be deducted.
The use of the automobile for personal purposes is a taxed fringe benefit. That sum must be added to your annual salary and income, and taxes must be paid on it. Find out more about the taxation of corporate cars in our article: How to use small business tax deductions.
Standard mileage rate vs. actual expense
To calculate the deductable car expense for business-related trips, either the standard mileage rate or the actual expense method can be applied. Find out more about these methods and how to calculate business mileage.
Business car perks for self-employed people
✓ Long-term rentals (from 28 days)
✓ Short-term rental
✓ Register - secure company discount - book
✓ Premium company car fleet
✓ From Economy/Compact to Luxury/Special class, everything is available for booking
✓ Trucks, vans, and commercial vehicles are available
✓ No start-up costs; no equity required
✓ Always drive the latest models
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