Should my next company car be a pickup?Should you get a pickup as your next company car? We look at the facts...
If you’re looking for a new company car, we don’t think that a pickup was at the top of your list. Particularly if you before you were driving a C-Class. It’s not exactly traditional, but it is one that we think will be fairly common in the years to come.
But, why? Why should your next company car be a pickup?
As we said, it’s an unusual concept so we know that you will probably need a fair bit of convincing. Which is why we’ve written an article debating whether your next company car should be a pickup.
What are the advantages of having a pickup as a company car?
The argument for having a pickup as a company car is strong, and it’s about to get even stronger.
They are practical
A fairly obvious one, but pickups are really practical. If you are using your company car for personal use, which we assume that you will be, then you cannot get a more practical car than a pickup. If you have a double cab it can fit four people comfortably with a decent amount of space. Many also offer four-wheel drive and boast extremely good off-roading capabilities. There’s also so much load space it knocks every other car out of the park.
If you’re considering a 4×4 as your next company car, look at a pickup instead.
They are just as luxurious as cars
When we think of pickups, we don’t really think of luxury. Not in the past anyway. Sure, you got some nice ones but they never screamed luxury travel. Until now. The growing popularity of pickups for everyday use has led them to become increasingly luxurious.
Mercedes are launching their own luxury pickup this year and automotive industry experts have hailed it a game changer in the pickup game. And it’s not just Mercedes jumping on the luxury pickup bandwagon (or just, wagon, in this case).
The latest Mitsubishi L200 comes with ‘Super Select 4-Wheel Drive’ meaning it switches between 4WD and 2WD depending on the environment. On tarmac, it switches to two-wheel drive to save fuel and then switches to four-wheel drive when on rougher terrain. It also comes with hill-start assist, lane departure warnings and a touchscreen navigation and music panel. There are so many other features that come as standard on many of the models that it’s basically a whole other article.
Now let’s look at the Volkswagen Amarok. It comes with hill start assist and hill descent control as well as selectable four-wheel drive. It can hold five people comfortably and boasts a high quality interior. It essentially looks like a car inside, making it perfect for business during the week. There is leather upholstery, heated front seats and privacy glass available as well as a touchscreen infotainment system.
So, as we said, they are getting more luxurious as we speak. Perfect for a company car, as you can ensure that you still look professional while getting all the practicality benefits of a pickup.
They count as vans under the company car tax rules
You could be thinking, why is this important? When actually, it’s probably the biggest advantage of them all.
Vans are taxed differently than company cars. Company cars are taxed depending on how much CO2 they emit, your personal tax bracket, and their P11d value. So how much you pay depends on a lot of things that are out of your control.
However, a van is taxed differently. Instead of a sliding rate, it is fixed. Meaning that you will pay the same amount regardless of how much CO2 your van emits (unless it’s 100% electric), how much you earn and how much the van itself is worth. You can read more about company car tax for vans here.
How is company car tax calculated for a van?
As we mentioned, there is a fixed BIK rate of £3,150 for a van. So, if your personal tax bracket is 20% then you will have to pay 20% of the £3,150 which is £3630 a year or £52.50 a month.
Pickups being classed as vans is hugely beneficial for company car tax. If they were taxed as cars, then they would cost considerably more due to their high P11d value and higher CO2 emissions. But instead, they are taxed a mere £52.50 a month, which is less than some luxury company cars.
This is even more relevant now, as in April this year (2017) there will be changes to company car tax. There will be more BIK bands introduced, meaning that you will be paying more for lower emission cars than you were before. You will also be paying more even if your car isn’t low emission. And it will be more than the monthly cost of a pickup.
Therefore, you can see why getting a pickup would be appealing. Unless you are looking at an ultra-low emission luxury car, then it’s definitely worth looking at a pickup.
As you can see, there are quite a few good reasons why a pickup would make the perfect company car.
What are the disadvantages of getting a pickup as a company car?
However, that’s not to say they are right for everyone. And, we want you to be fully informed so you can make the right decision. So, what about the disadvantages of getting a pickup as a company car?
They are big
Okay, so a pickup probably isn’t the best thing if you’re going to be driving down narrow city streets. They are more suited to those who are going to be doing a lot of longer journeys, particularly up and down motorways.
So, if you’re looking for a more city-suited car, then it’s safe to say a pickup isn’t going to be right for you.
The driving experience doesn’t compare
One of the best things about a company car is that you tend to be able to drive a considerably more luxurious car than you would if you went privately. And, with that luxury you get a much more refined driving experience.
Unfortunately, as luxurious as the pickups we’ve mentioned are, they haven’t quite managed to achieve the same driving experience as some of the best executive cars. While they have improved, and will continue to improve, they simply do not compare to a car.
They can cost more to run
Again, this is something that is being improved with each release of a new model, but pickups will be pricy if you pay for your own fuel.
They can cost more to run than your average SUV or hatchback, so that’s something you have to consider if you have to pay for your own fuel.
So there are also disadvantages.
Whether you decide to get a pickup as your next company car is up to you. However, it is something that we recommend you consider because of reasons mentioned above. While there are disadvantages, these can easily be overlooked for some of the advantages, such as the company car tax benefits. Hopefully, though, this has allowed you to become more educated in order to make an informed decision.
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