Selling car to company

[Lauren R]

Hi everyone,

We have been advised by our accountants that it would be a good idea to sell our car to the company, thereby enabling us to claim all associated vehicle expenses etc.
They suggested selling the car to the company and creating a loan account for that amount.

We would prefer, however, to sell the car to the company in such a way that it is registered under the company name, debit orders are deducted from the company's bank account etc.

How would we go about doing this?
Any help would be really appreciated.

Thanks,
Lauren

[Nickolai Naydenov]

Sell your car to your company and then claim all your petrol, maintenance, depriciation and etc as easy as that. As long as the company is not a sole prop or partnership where the person is the company this is the way. I wouldn't even create a loan account.

[Dave A]

We would prefer, however, to sell the car to the company in such a way that it is registered under the company name, debit orders are deducted from the company's bank account etc.

Oops - is the car financed?

[Lauren R]

Oops - is the car financed?

Hi Dave,

The car is financed through Wesbank. Don't know if they would refinance it at this stage. Thought maybe i could just change the banking details for the debit order?

Thanks,
Lauren

[Dave A]

Thought maybe i could just change the banking details for the debit order?

That can be done, but you wouldn't be able to change the ownership of the vehicle (sell the vehicle to the company) without refinancing.