Working out the cost of having a company vehicle

You will already be aware of some of the costs of buying and running a company vehicle, and though you may think that as running costs can be set against your company tax you won’t need to be penny-pinching the idea has little credibility for you if cash is short and you are running near to break even or even at a loss. In this case, especially in a start up or new business then it is important to have estimated costs very carefully AND know these are within your expenses budgets. Take into account the following costs:
•    Taxing the motor vehicle
Now dependent on CO2 emissions look up the cost of the road fund license of the vehicle you wish to acquire on the Directgov website. In order to tax your vehicle if it is more than 3 years old you will need a MOT certificate. Certain Goods and Heavy Goods drivers will need a license from the VOSA Agency.
•    Insurance
Third party insurance is essential and most businesses will take out comprehensive insurance and cover for any goods and/or tools and equipment being carried.
•    Other costs
Other costs include servicing and repairs, fuels and parking costs for business use, any toll or other road charges and may also include payment for garaging the vehicle.
Given the way in which these overhead costs add up for a business a wise business owner not only knows pretty well what the vehicle running costs will be AND has made sure that the very best value has been obtained for each of the services by shopping around to different providers