Use of pool car or business mileage

tichbourn

What would be the best way of going about finding out what is the cheaper option for a company? The costs of running a pool car for business use or paying mileage to employees who use their own car? Also, what is a car allowance?

Car_54

tichbourn wrote: »

What would be the best way of going about finding out what is the cheaper option for a company? The costs of running a pool car for business use or paying mileage to employees who use their own car? Also, what is a car allowance?

You're running a company? Employ an accountant.

tichbourn

Its an assignment for part of a course

ohreally

Using a private car is subsidising a poor business model, in the longer term this is rarely sustainable for the user.

AdrianC

It depends entirely on the amount of use it'll get. If the pool car would be sat around doing nothing for most of the time, business mileage would make more sense, but you'd have to have some way of ensuring that cars were insured for business use. If the pool car would be in fairly constant use, then that would make more sense, but you'd have to consider users who might have to drive to the office to pick it up, then turn straight back round again. You'd also need to consider diary clashes, and keeping track of users for any tickets (parking/speeding etc) received. Location also plays a big part - a central London based company would have to consider congestion charge and parking costs.

There's a third option, renting cars as required.

tichbourn

Thank you for your replies