Cleverly finance a company car: Your guide to the best car loan as an employee
12 Jun 2025
Katrin Straub
Managing Director at nextsure
A company car from the boss is more than just a vehicle – it's a component of your salary with financial opportunities and risks. Making the wrong choice regarding financing and taxation can quickly cost you several hundred euros per month.
The topic in brief and concise terms
The financing of a company car is usually provided by the employer; with a car allowance, you as an employee have to find a suitable car loan yourself.
The tax burden from private use is determined either flat-rate using the one-percent rule or precisely by a logbook, which can amount to hundreds of euros per year.
A detailed company car agreement is crucial to clearly address liability issues, cost distribution, and usage rights, avoiding costly surprises.
Das Angebot für einen Firmenwagen liegt auf dem Tisch und verspricht auf den ersten Blick viele Vorteile. Doch die Finanzierung und die steuerlichen Regelungen sind komplex. Ob Gehaltsumwandlung, die Ein-Prozent-Regelung oder ein privater Autokredit für einen Firmenwagen für Angestellte – die Details entscheiden über den tatsächlichen finanziellen Nutzen. Dieser Leitfaden zeigt Ihnen in drei Ebenen, wie Sie die richtige Wahl treffen: von den schnellen Fakten über praxisnahe Berechnungen bis hin zu Experten-Tipps für die Verhandlung mit Ihrem Arbeitgeber. So stellen Sie sicher, dass der Dienstwagen für Sie ein echter Gewinn wird.
Company car as a salary bonus: Understanding the two basic models
Fundamentally, there are two ways in which employers provide a company car. In the first option, the classic company car, the company provides you with a vehicle from the corporate fleet. In this case, the company usually covers over 90 percent of the costs for purchase, insurance, and maintenance. The second option is a mobility budget or a ‘Car Allowance’, where you receive a monthly allowance of, for example, 400 euros. With this budget, you can finance a vehicle yourself or use other mobility services. This distinction is fundamental as it determines who signs the financing contract and who bears the responsibility. The classic company car is often the simpler solution for the employee. However, the mobility budget offers more flexibility but shifts the credit search onto you. A loan during the probationary period can present a particular hurdle here. The decision between these two models lays the foundation for all further financial considerations.
Structuring the car loan for the company vehicle: Who signs the contract?
The financing of the company car depends directly on the chosen model. Usually, the company finances or leases the vehicle directly as an operating expense. A popular method is salary sacrifice, where you give up part of your gross salary, which then covers the lease payment. This lowers your taxable income but can reduce your social security contributions by up to 20 per cent. If you receive a Car Allowance, you are responsible for the financing yourself and need to find a suitable employee car loan. In this case, you act as a private buyer and conclude the contract with the bank. Interest rates for such loans often range between three and six per cent. There are three common options you should consider:
Installment credit: You repay the loan in equal monthly installments over a fixed term, often 24 to 84 months.
Balloon financing: Low monthly payments and a high final payment at the end, which can reduce the monthly burden by up to 30 per cent. You can find more about this in our guide to three-way financing.
Leasing: You only pay for the use of the vehicle over a period of typically two to four years.
Choosing the right form of financing is crucial for your monthly burden and the total costs.
Avoiding tax pitfalls: Calculating the monetary benefit correctly
The private use of a company car is known as a benefit in kind, which must be taxed. There are two methods for this, the choice of which can affect your net burden by over 50 euros per month. The one-percent rule is the flat-rate and simpler option. Here, one percent of the vehicle's gross list price is added to the gross salary each month. For a car with a list price of 45,000 euros, this amounts to an additional 450 euros. Added to this are 0.03 percent of the list price per kilometre for the commute. For electric vehicles, a reduced assessment basis of only a quarter (0.25 percent) applies, which reduces the benefit in kind by 75 percent. The alternative is to keep a logbook in which all journeys are documented without gaps. This method is more complex but worthwhile if you only use the car for a few private trips, which can reduce the tax burden by up to 40 percent. A correct household calculation helps you calculate the actual burden. The exact calculation determines how much net really remains at the end of the month.
Achieving Legal Clarity: The Company Car Agreement in Detail
A detailed company car transfer agreement is essential to avoid misunderstandings. It should contain at least ten to fifteen clear clauses. These clauses regulate who bears the costs for fuel, maintenance, and repairs - typically, the employer covers over 90 percent of these expenses. An important point is the extent of usage: Are family members allowed to drive the car? A lack of regulation can lead to the loss of insurance cover in the event of damage. The contract should also stipulate what happens to the vehicle in case of prolonged illness or upon termination of employment. Our expert tip: Insist on a clear provision regarding liability in the event of self-inflicted accidents to avoid a high deductible exceeding 1,000 euros. Also clarify whether you are entitled to a replacement vehicle if the car is in a workshop for more than 24 hours. These contractual details protect you from unexpected costs and legal issues.
Expert tips for your negotiation: How to get the most out of it
Negotiating with your employer is a crucial step. Enter the discussion with a clear idea and at least three arguments. Not only should you establish your desired model, but also set a maximum budget, approximately 15 percent below what you actually want to spend. Negotiate the details of private usage, such as covering fuel costs for holiday trips. Another point is the choice of taxation method. Proactively suggest the method that is more beneficial for you and support this with a sample calculation showing a benefit of over 200 euros per year. Our expert tip: Ask about the possibility of taking over an expiring lease contract, which often reduces the monthly rate by ten to 15 percent. A refinancing of an existing loan might also be an option to improve the terms. A good negotiation strategy can increase the value of your company car by several thousand euros over the entire term.
Request your personal risk analysis now
The choice and financing of a company car have far-reaching financial consequences. A wrong decision in taxation or in the handover contract can quickly cost several thousand euros. As your digital insurance portal, we help you assess the risks and find the optimal solution for you. Have your insurance situation reviewed for free and receive specific optimisation suggestions for your car & mobility.
More useful links
Bundesfinanzministerium provides information on appendices to the Income Tax Act, which may be relevant for the tax aspects of company cars.
Bundesfinanzministerium offers detailed information on specific appendices to the Income Tax Act that are significant for the taxation of company cars.
Deutsche Bundesbank provides current statistics on interest rates for consumer loans, which are relevant for vehicle financing.
Kraftfahrt-Bundesamt (KBA) offers monthly statistics on new vehicle registrations in Germany, providing insights into the automotive market.
Statistisches Bundesamt (Destatis) provides tables on private consumer spending that reflect general economic trends and purchasing behaviour.
Wikipedia provides a comprehensive overview on the topic of company cars, including definitions and relevant aspects.
ADAC offers detailed information on electric company cars and their tax treatment.
Bundesverband Deutscher Leasing-Unternehmen (BDL) provides current market figures and statistics on the leasing market in Germany, relevant for the financing of company cars.
FAQ
Wie funktioniert die Gehaltsumwandlung bei einem Firmenwagen?
Bei der Gehaltsumwandlung verzichten Sie auf einen Teil Ihres Bruttogehalts in Höhe der Leasing- oder Finanzierungsrate des Wagens. Dadurch sinkt Ihr zu versteuerndes Einkommen und somit Ihre Steuer- und Sozialabgabenlast. Im Gegenzug erhalten Sie den Firmenwagen zur beruflichen und privaten Nutzung.
Welche Kosten übernimmt der Arbeitgeber bei einem Firmenwagen normalerweise?
Üblicherweise übernimmt der Arbeitgeber die Kosten für Anschaffung bzw. Leasing, Kfz-Steuer, Versicherung, Wartung, Reparaturen und die jahreszeitlich notwendige Bereifung. Die Übernahme von Kraftstoffkosten, insbesondere für Privatfahrten, wird individuell im Überlassungsvertrag geregelt.
Lohnt sich ein Firmenwagen mit der Ein-Prozent-Regelung?
Die Ein-Prozent-Regelung lohnt sich vor allem dann, wenn Sie das Fahrzeug sehr häufig privat nutzen und der Listenpreis des Autos eher niedrig ist. Bei seltener Privatnutzung oder einem teuren Fahrzeug ist die Abrechnung über ein Fahrtenbuch meist die steuerlich günstigere Alternative.
Darf mein Partner den Firmenwagen fahren?
Ob andere Personen, wie der Partner oder Familienangehörige, den Firmenwagen fahren dürfen, muss explizit im Dienstwagenüberlassungsvertrag gestattet sein. Eine unerlaubte Überlassung an Dritte kann zu versicherungsrechtlichen Problemen und arbeitsrechtlichen Konsequenzen führen.
Was sind die Vorteile eines Elektroautos als Firmenwagen?
Elektroautos genießen erhebliche Steuervorteile. Bei der Versteuerung des geldwerten Vorteils wird nur ein Viertel des Bruttolistenpreises angesetzt (0,25-Prozent-Regelung), was die monatliche Steuerlast im Vergleich zu einem Verbrenner drastisch reduziert.
Was sollte ich tun, bevor ich einen Vertrag für einen Firmenwagen unterschreibe?
Prüfen Sie den Dienstwagenüberlassungsvertrag sorgfältig auf alle Klauseln bezüglich Kosten, Haftung, private Nutzung und Rückgabebedingungen. Berechnen Sie die steuerliche Belastung für beide Methoden (Ein-Prozent-Regelung und Fahrtenbuch) und vergleichen Sie die Gesamtkosten mit denen eines Privatfahrzeugs.
