Considering a company car for your business can feel like a big decision, with a lot of pros and cons to think about. Every business is different and we’re here to help you decide whether a company car makes sense for yours.
Branding and Control
Having a bit more control over your employees’ transport requirement can be a massive advantage. You don’t have to worry about reluctance to use their own car or arranging public transport, as you’re able to suggest they use the company car. This makes sense for any business with a mobile sales force or employees that require occasional road travel.
Some employees may be costing you a lot of money with taxi fees, which could be mitigated using a company car instead. Take a look into how much your company is spending on employee transport and then use this as a starting budget for the car.
You can also add branding to your company car, if you feel that this will bring you in some extra business. If you have sales people going out to business parks, then this might just bring you interest from other business owners. This kind of outdoor advertising could cost you money, but you could add this to your company car with ease.
If employee morale is important to you, then you might want to consider giving your employees this perk. It can make a massive difference to their monthly outgoings, without making too much of a difference to your company. Being selected to receive a company car can actually act as an incentive for some.
There are many tiers of car to pick from too, so top performers could even end up with a luxury car. This can be a brilliant incentive scheme for sales or productivity based jobs. If you have sales people visiting clients, then you may wish to upgrade their company car to make the best possible first impression on them.
You don’t have to allow for a massive budget for maintenance on the company car, if you cover yourself with the right plans. Good insurance and protective products can do more than enough to slash any budget you’d have to spend on this. For example, covers from the likes of Auto Anything can help to keep the interior and exterior of the car intact.
You may have to impress upon employees that the car is a privilege and not a given. If you see one of these cars falling into disrepair, then you may wish to remove that employee’s access to the car. If it’s a pooled car, then you’ll have to keep an eye on which employees treat it well to cut down on these costs in the long term.
There are a lot of pros and cons when it comes to investing in a company car. Therefore, it’s essential to think about whether this really is right for your business or not. Take a look at the books and figure it out!