Selling company cars: what solutions are there for companies?
With the electrification of vehicles and subsidies for the purchase of electric cars, such as the ecological bonus and the conversion premium for the purchase of electric carsmore and more companies are looking to part with their old vehicles to renew their 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 vehicles to an automotive professional (mechanics, garage owners, dealers, etc.). This is often the simplest and most common solution, as the professional is an expert in his or her field and all the formalities will be simpler and quicker. The company (a legal entity) wishes to sell one of its vehicles, you simply need to fill out a paper certificate of transfer with certain mandatory information:
- company name,
- address and Siret number,
- information about the vehicle and, of course, the buyer.
The auction
The company car can also be directly repurchased by the company director. However, the company must be the owner of the vehicle and, like the employee, can benefit from a reduction of up to 15% on the purchase price. Failure to comply with this obligation may result in prosecution for misuse of company assets.
Resale to a company employee
As one of the possible solutions for a company, more and more companies are turning to this method of resale, which is becoming increasingly commonplace. We're going to take a closer look at this possibility for companies to dispose of their vehicles.
Buying a company car: our advice
You have every right to buy your company car from your employer and use it on a daily basis outside working hours.. But this choice must be carefully thought out beforehand, and not made haphazardly depending on the company you work for. It's important to be aware of all the conditions and information involved, to avoid any unpleasant surprises.
It is also important to note that the same way if the vehicle is leased at lease with purchase option (LOA) or long-term lease (LLD). Conditions also differ depending on who in the company wishes to buy back the company car. So before you take this step, be aware that the more you know about the conditions, the smoother the buy-back 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 earning €10,000 a year, while taking out a vehicle loan of €15 or €20,000). This choice would be completely disproportionate. 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 the type of vehicle you want. Ask yourself beforehand why you want to buy it back? 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 an estimate for your business vehicle, as this can only benefit you.
Buying back a company car: what are the reasons?
First of all, a company employee has his or her company car at his or her disposal throughout the working day. They are therefore very familiar with their company car and its features. So it's only 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, it's available immediately, avoiding the (sometimes very long) waiting times he may encounter when buying from a dealer. What's more, one of the biggest advantages that also encourages employees to buy their company car is that significant advantages, such as the possibility of buying back the vehicle at a reduced price.
A price that will be very attractive compared to 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 a substantial discount on the sale price. However, there are certain conditions to this. A limit of 10 to 15% maximum discount for employees wishing to buy back their company car. The total sale price of the company car must not be less than the vehicle's "argus" value..
This reference value gives both private individuals and professionals a basis on which to define a buy-back price. Failure to comply with this obligation the company exposes itself to both legal and fiscal redress in the event of an URSAFF audit.
It is therefore important for the company to first calculate the real price of the car in relation to the market price. Why? 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 is considered a benefit in kindany goods or services provided free of charge to the employee, whether for professional or personal purposes. The luncheon vouchers, vacation vouchers or in this case company cars used by the employee for personal travel are benefits in kind. Above all, they enable the employee to work in the best possible conditions, and in certain situations to deduct them from social security and unemployment contributions. By buying back their company car, employees can deduct the cost of using the vehicle directly from their company's account.
This is the case for mileage expenses which will enable you to make your journeys and invoice your company directly. Of course, this does not apply to kilometers traveled on company business, but to those traveled on a personal basis. Nevertheless, this will logically represent an expense for the company, and subsequently a drop in profits, which in turn will result in lower corporate taxes for the company, so the money you receive will be tax-free (no generalized social contribution).
Even if you have to pay the cost of the car, you'll be reimbursed far more than the actual cost, and quickly.
Want to go 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's when the company doesn't own the vehicle that the situation can become more complex. You'll find it much more difficult to acquire your company car if the company doesn't own it, both administratively and financially.
What are the solutions?
There are two possible situations:
- If the company rents the business vehicle under a lease with purchase option, you are bound by certain clauses, as in all types of contract. Under a LOAcontract, you are committed to respecting them until the end of the contract. However, you do have the option of breaking the lease contract at any time before the end of the contract. 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 consider whether it really makes financial sense to buy it back. It's worth noting, however, that under no circumstances is a company director entitled to buy back his or her company car. In the eyes of the law, this would be considered an abuse of company assets.
- On the other hand, if the company has opted for a long-term long-term leasing of the company car, the term will be systematically determined before the contract is signed with the lender (generally ranging from 12 to 60 months). Under no circumstances will it be possible 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. It's out of the company's hands.
Beev also offers electric car leasing for both private and business customers, in addition to LMD (medium-term rental).
Lease an electric car
In conclusion
Buying your company car is a great opportunity with many advantages. However, as you will have understood, you need to ensure that you have taken full account of all contract clauses, information and conditions. This is the very first step in buying back your company car with complete peace of mind.
