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Sale of company cars: what solutions are there for companies?
With the electrification of vehicles and purchase aids electric cars such as the environmental bonus and the conversion premium when acquiring electric carsMore and more companies want to get rid of their old vehicles to renew their fleet. vehicle fleet. Fortunately, there are many ways of doing this. At Beev, we'll explain them to you in detail.
Sales to professionals
The company can sell its company cars to a car professional (mechanics, garage owners, dealers, etc.). This is often the simplest and most common solution, because the professional is an expert in his field and all the formalities will be simpler and quicker. The company (a legal entity) wishes to sell one of its vehicles, all it needs to do is fill in certification of transfer paper with certain compulsory information:
- company name,
- address and Siret number,
- information about the vehicle and, of course, about the buyer.
The auction
The company car can also be directly bought by the company's director. However, the company must be the owner of the vehicle and, like the employee, can benefit from a tax reduction. a maximum of 15 % on the purchase price. If they fail to comply with this obligation, they risk being prosecuted for misuse of company assets.
Resale to a company employee
Being one of the possible solutions for a company, More and more companies are using this method of resale, which is becoming commonplace as time goes by. So we're going to focus in more detail on this option for companies to sell their vehicles.
Buying a company car: our advice
You are perfectly entitled to buy your company car from your employer and use it on a daily basis outside working hours.. But it's a choice that needs to be carefully thought through beforehand, and not made haphazardly depending on the company you're working for. Often ignored, being aware of all the conditions and information is very important and will help you avoid unpleasant surprises.
It is also important to note that buying back your company car will not be the same if it is leased at lease with purchase option (LOA) or long-term lease (LLD). There are also different conditions depending on who in the company wants to buy the company car.So before you take this step, be aware that the more you know about the conditions, the smoother the repurchase will be.
Finally, it's also a good idea to be realistic about your company's financial resources (for example, it would be pointless to buy a company car in a small company that earns €10,000 a year, while taking out a vehicle loan of €15 or €20,000). That would be a completely disproportionate choice. As you can see, it's important to find out about your company's financial health before taking any action. Unfortunately, it's also not possible to buy back the type of vehicle you want. Ask yourself beforehand why you are buying? Is it really relevant? Is it really justified?
Don't forget to ask yourself whether the value of a leased vehicle (LOA or LLD) has decreased at the end of the contract, which would not be very interesting. Finally, don't hesitate to get a valuation of your business vehicle, as this can only benefit you.
Buying a company car: what are the reasons?
First of all, company employees have their company car at their disposal throughout their working life. They are therefore very familiar with their company car and its features. So it's natural that, as their work progresses, they feel comfortable using it on a daily basis and want to keep it for good.
What's more, they can access it immediately and avoid the (sometimes very long) waiting times. they are likely to encounter when buying from a dealer. What's more, one of the biggest advantages that encourages employees to buy a company car is they will benefit from significant advantages such as the possibility of buying back the vehicle at a reduced price.
A price that will be very attractive compared with the current market price. In fact, when a company owns the vehicle it has graciously entrusted to you and agrees to sell its company vehicle to its employee, it can offer you the following on the vehicle a significant reduction in the sale price. However, it does have some obligations. A limit of 10 to 15 % maximum reduction is set for employees wishing to buy back their company car. The total selling price of the company car must not be less than the vehicle's "argus" value.
This reference value provides both private individuals and professionals with a basis that can then be used to set a buy-back price. In the event of a breach of this obligation, the company is exposed to both judicial and tax receivership in the event of an URSAFF inspection.
It is therefore important for the company to first calculate the real price of the car in relation to the market price. Why is this? Well, to avoid the sale being considered as a concealed benefit in kind.
The benefit in kind of a company car
As a reminder, the following are considered to be benefit in kindAny good or service provided free of charge to the employee, whether for professional or personal purposes. The luncheon vouchers, holiday vouchers or in this case company cars used by the employee for personal travel are benefits in kind. Above all, they enable employees to work in the best possible conditions and, in certain situations, to deduct them from social security contributions and unemployment contributions. By buying back their company car, employees can deduct the cost of using the vehicle directly from their company account.
This is the case for mileage expenses which will allow you to make your journeys and invoice your company directly. Of course, this does not apply to journeys made on company business, but to personal journeys.Nevertheless, this will logically represent an expense for the company and subsequently a drop in profits, which will result in a drop in corporation tax for the company, so the money you receive will be tax-exempt (no generalised social contribution).
Even if you have to pay the cost of the car, you'll be reimbursed much more than the actual cost, and quickly.
You would like toto electric?
Beev offers multi-brand 100% electric vehicles at the best prices, as well as recharging solutions.
The company does not own the company car: what can be done?
As mentioned above, employees can buy their company car back from their employer at a substantial discount. On the other hand, it is when the company does not own the vehicle that the situation can be more complex. It will be much more difficult for you to acquire a company car if the company does not have one, both administratively and financially.
What are the solutions?
There are two possible situations:
- If the company leases the business vehicle under a hire purchase agreement, you are bound by certain clauses, as in all types of contract. Under a LOAIt commits you to being respected until the end of the contract. However, you may terminate the contract at any time. lease contract at any time before it ends. This is entirely possible, but it will inevitably incur financial penalties for the company. It is therefore important for the company to calculate the total amount of these costs and to ask itself whether it really makes financial sense for it to buy the company. A small but important point to note is that the manager of a company is under no circumstances entitled to buy out his company. company car. In the eyes of the law, this will be considered as misuse of corporate assets.
- On the other hand, if the company has opted for a long-term rental of the company car, the term will be systematically determined before the contract is signed with the lender (generally between 12 and 60 months). Under no circumstances will it be possible for the lender to buy the vehicle outright. However, it is possible by mutual agreement to deal with the lessor if you wish to buy it back, and it will be up to the lessor to decide whether or not to sell it back to you. So it's out of the company's hands.
Beev also offers leasing of electric cars for both private and business customers, in addition to the LMD (medium-term rental).
Lease an electric car
In conclusion
Buying your company car is a great opportunity and offers many advantages. However, as you will have realised, you need to make sure that you have taken full account of all the clauses in the contracts, the information and the conditions. This is the very first step in making your purchase from your company with complete peace of mind.
