What is the difference between a company car and a private car?
4 Answers
Company cars and private cars differ in the following aspects: 1. Registration documents: A company car requires a business license, IC card, organization code certificate, capital verification report, etc., while a private car requires an ID card. 2. Payment responsibility: The purchase cost of a company car should be paid by the company, whereas a private car must be paid for by the individual. 3. Vehicle ownership: A company car belongs to the company, and the vehicle registration certificate will bear the company's name, making it the legal property of the company. A private car is personal property, and the vehicle registration certificate will show the owner's name. 4. Impact on creditors: If the car is the legal property of the company, creditors of the company's external debts can legally apply for the preservation or execution of this property. If the car is personal property, creditors of the company's debts cannot legally apply for the preservation or execution of this property.
The most headache when driving a company car is the reimbursement of fuel receipts, as our administrative department is always chasing for the documents. The fuel expenses for company vehicles are paid through the corporate account, requiring special invoices for each refueling, and by the end of the month, attaching these receipts becomes a tedious task. Private cars are much more convenient; just fill up at your own expense. In terms of maintenance, the company mandates visits to contracted repair shops, using only genuine parts, where even changing a tire costs over 200 yuan more than my private car. The most troublesome part is handling accidents. Last time, after a rear-end collision, the other party asked for a copy of the business license, which then needed the finance department's stamp, delaying the claim settlement for half a month before it was successfully processed.
Our fleet manager's daily routine is all about outsmarting the drivers. Company vehicles require mandatory maintenance every 5,000 kilometers, with real-time dashcam monitoring - three speeding violations mean bonus deductions. Last month, a colleague got caught using a company car to pick up kids via GPS tracking, resulting in a company-wide notice. Private cars don't have these restrictions. But company vehicles do have advantages - comprehensive insurance coverage including spontaneous combustion and glass damage as standard, with no out-of-pocket repair costs. The only catch? Every fuel refill requires odometer registration - miss one log and it's a 50-yuan penalty.
As a finance professional, I know best about the hidden costs of company cars. Purchasing a car allows for a 13% VAT deduction, and the cost is amortized over five years of depreciation, making it more cost-effective than private cars. However, annual vehicle and vessel tax must be paid, and commercial insurance premiums are 30% higher than for private cars. Parking fees are even more outrageous—monthly rent in a business building is 1,200, while my private car only costs 300 in an old residential area. Car washing is also a hassle, as it must be done at designated shops that issue invoices, often involving an hour-long wait. Handling traffic violations is the biggest headache, requiring company stamps to process procedures at the traffic police station.
