Car subscription for the self-employed

• Car subscription tax deductible
  If you also use the car subscription for business purposes, you may be able to claim the costs against tax.
• There are no hidden costs
  The car subscription price includes all operating costs except for fuel.
• From small cars to vans
  Vehicles from more than 20 manufacturers are available to self-employed people with a car subscription.
• The more unbound, the better!
  The big comparison between car subscription, leasing and purchase at a glance.
• Funding opportunities for e-cars
  Many cities and municipalities promote the installation of wallboxes.

What is a car subscription for the self-employed?

Commercial vehicles, SUVs or small cars? Self-employed people choose their car subscription according to their individual needs – this also applies to equipment, duration and free mileage. MHC Mobility takes care of the rest: registration, vehicle tax, insurance, maintenance, repairs and much more are included in the car subscription for the self-employed. Only the costs for refueling and charging are borne by the drivers of the car subscription for the self-employed. The following costs are included in the monthly rate:

• Authorization
• Vehicle tax
• Motor vehicle liability insurance
• Fully and partially comprehensive insurance
• Consulting
• Tires/tire change
• Maintenance services
• Wear and tear repairs
• Accident prevention regulations (UVV)
• 24-hour emergency service
• Replacement car service
• Broadcasting fee
• Pick-up and delivery service

MHC Mobility is manufacturer-independent. The selection of the existing rental pool is correspondingly large: the car subscription for the self-employed includes cars, small cars, SUVs, saloons, estate cars and light commercial vehicles from more than 20 Manufacturersincluding Audi, BMW, Jeep, Tesla and Volkswagen. The available fuel types are diesel, electric, gasoline and hybrid.

Self-employed people who use a car subscription exclusively for business purposes can claim the costs in full for tax purposes. Anyone who uses a vehicle at least 10 percent for business purposes can enter part of the cost of the car subscription as a business expense in their tax return.

Tax advantage car subscription for the self-employed: logbook and 1-percent rule

If self-employed people also use a car subscription privately, the tax office offers two options for claiming the tax advantage.

Keeping a logbook

If you choose this method, you can determine all business expenses for the car. The following details must be noted for each business trip:

• Date of the trip
• Start and finish location
• Reason for the trip – names of the business partners visited
• Name of the driver
• Odometer reading at the start and end of the trip
• If detours were taken, they must be justified

The 1 percent rule

This only comes into question if a vehicle is more than 50 percent is used for business purposes. If this is the case, a percentage of the gross list price of the vehicle is calculated and set as the monthly value, which must be taxed as a non-cash benefit under business income. In return, self-employed persons can charge EUR 0.30 per kilometer for kilometers driven for business purposes up to a distance of 20 kilometers and EUR 0.38 from the 21st kilometer onwards.

Car subscription for the self-employed: Tax benefits of electric cars and plug-in hybrids

E-cars are exempt from exempt from vehicle tax until the end of 2030. For professional use of more than 50 percent have electric cars or plug-in hybrid vehicles in the Auto-Abo Selbstständige a further tax advantage.

Electric cars with a gross list price of up to 60,000 euros are taxed at just 0.25 percent per month. A monthly tax rate of 0.5 percent of the gross list price applies for cars over 60,000 euros. A tax rate of 0.5 percent also applies to plug-in hybrids, provided they have an electric range of at least 60 kilometers or a maximum of 50 grams of CO2 emissions per kilometer.

Drivers of electric cars and plug-in hybrids therefore have to pay tax on a lower non-cash benefit than self-employed people who choose a vehicle with a combustion engine for their car subscription.

With leased vehicles, self-employed people have to calculate, because operating and maintenance costs are due in addition to the installment. This is different with a car subscription. The rule is: one installment, everything included! It almost goes without saying that there is no down payment, basic fee, final payment, capital commitment or residual value risk.

Car subscription for the self-employed: MHC Mobility offers 2 subscription models

The FlexiRent car subscription

Simply choose a vehicle from the preconfigured MHC Mobility pool, specify the term and free kilometers and you’re ready to go! Because: The vehicles from our MHC Mobility rental pool are available immediately. The term is as flexible as self-employed people often have to be: anything from 1 month to 60 months is possible. And if things turn out differently than expected, the term, range and vehicle exchange can be changed at any time. FlexiRent car subscription can be adjusted within the contract term.

The SelectRent car subscription

With the SelectRent car subscription, self-employed people receive their vehicles in their desired configuration directly from the manufacturer. From color and equipment to wrapping with the company logo or company-specific fittings for vans, the motto is: configure and benefit from the advantages of the car subscription for the self-employed at the same time!

Maintenance and repairs

When self-employed people take out a car subscription, there are no additional costs for maintenance and repairs – regardless of how long the vehicle is used.

Personal contacts are available 24 hours a day, seven days a week for all matters relating to your car subscription.

• Repair, inspection, service: 04286 7703-466, service@mhcmobility.de
• Damage: 04286 7703-444, schaden@mhcmobility.de

Self-employed car subscription: minimum terms and termination options

From 1 month to 60 months: the car subscription offers self-employed people flexibility without commitment. If you still want to use the vehicle after the term, you don’t have to do … anything! If the contract is not terminated, it will be tacitly renewed under the same conditions. Cancellation is then possible on a daily basis with daily final billing. Anyone wishing to withdraw from the contract prematurely can also do so in return for a compensation payment amounting to 100 percent of the unpaid installments.

The conclusion of a contract for a car subscription for self-employed persons is possible under the following conditions:

• Minimum age 18 years
• valid driver’s license
• good credit rating

We also need the following documents to check your creditworthiness by means of a Schufa query:

• Corporations (GmbH, AG, KG, OHG): Extract from the commercial register or business registration
• Partnerships (sole proprietor, GbR, UG): Business registration, Schufa form, identity card of the managing director
• Freelancers and self-employed personsIdentity card, Schufa form, sales tax identification number

If approved, the self-employed will immediately receive an offer for a car subscription. You would like a Car subscription without Schufa? Contact us and we’ll clarify what we can offer in a chat or on the phone.

There are many regional subsidy programs that allow self-employed people with a car subscription to make additional savings. Many cities and municipalities promote the installation of wallboxes. Anyone who builds a charging station in Castrop Rauxel and purchases green electricity from the municipal utility company is rewarded with 100 euros. There is a similar offer in Frankfurt/Oder with a maximum subsidy of 500 euros, Fürth offers 200 euros for a private charging station and Heidelberg covers 50 percent of the acquisition costs (maximum 1,000 euros). It can be worth asking the regional authorities for funding!

Further examples of regional support programs can be found here at ADAC.