Business Automobile Benefits
Company cars are used for a variety of business-related travel, ranging from large corporate events to short commutes to the office. The automobile industry is robust, and there has been ongoing industry innovation as well as growing interest in cars as status symbols. In particular, 2016 is a unique year because of the wide variety of features that car manufacturers are offering on the commercial and business side. Business owners can take advantage of these features to improve their business operations, but the question remains: how much is a company car worth in 2016?
One of the major benefits of company car ownership is the savings that can be made in company taxes. Depending on the type of car a company chooses and the amount of company travel undertaken, potential savings can range from 10-40%. In addition, company car maintenance costs are also reduced, as spare parts and labour costs can be included in the equivalent taxable salary. This means that the new financial year can see some impressive commitments for companies who decide to upgrade their fleet.
Company cars are also an attractive option for companies who are seeking to provide some prestige to their employees. Expensive cars are considered status symbols in many circles, and potential customers and business partners may be more likely to work with a business that is seen to invest in its employees in this way. Some of the more luxurious vehicle options on offer means that businesses can demonstrate their success while simultaneously offering employees a comfortable and safe journey.
Many companies are also incorporating green vehicles into their fleets in order to provide a positive example to their customers. Sustainability is now a major trend in many industries, with companies looking to reduce their carbon footprints and instead focus on renewable energy. Electric cars, hybrids and low-emission gasoline cars all give the option of leaving a small environmental footprint when it comes to travel. These cars can also be less expensive to run, with charging costs and refuelling fees being significantly lower. This is a big plus for companies who wish to show their commitment to responsible business practices.
However, the car industry can be unpredictable, and company car values can fluctuate from year to year. If a company wishes to keep up with developments in their industry, then having a portfolio of car makes and models from different years can be an effective way to stay ahead of trends and make sure their vehicles are current and reliable. Of course, some cars may become more expensive over time, but the key issue is ensuring that any cars purchased for the company in 2016 offer a dependable and efficient level of transport.
Alternate Possibilities Are Not to Be Dismissed
For companies who are keen to stay on top of their fleet and still ensure value in the cars they purchase, leasing is an increasingly attractive solution. Leasing cars can be an ideal option for companies who are expecting to move premises in the near future, or who are looking to change their automobile selection regularly. After the initial investment, monthly payments are often much lower than if the car is purchased outright. Companies can also upgrade cars regularly, ensuring a steady supply of modern vehicles.
Another potential alternative for company car owners is car-sharing solutions. These are becoming increasingly popular in many industries, and allow companies to pool resources and provide regular transport for multiple employees. Rental companies offer competitive rates for bulk and corporate customers, making sure that the costs are kept down and the service is consistent. In addition, the cars involved in the car-sharing schemes can be kept up to date, providing quality a reliable service for the people involved.
In conclusion, company car values in 2016 can be determined by a number of factors, including company size, location, benefits scheme and industry focus. Some cars may become more valuable over time, and leasing and car-sharing solutions can often be more effective ways of managing a fleet of cars. Companies should assess their automobile needs and compare their options in order to make the most of their business vehicles.
Safety Considerations & Regulations
Safety is a major consideration for drivers of company cars in 2016. Automobile regulations are becoming ever stricter and companies must ensure that their vehicles comply, or risk being liable for penalty costs. Car manufacturers are routinely required to fit their cars with features like airbags and seatbelts, and safety inspections are often required before a car can be legally driven. Companies should check that their cars conform to the latest regulations in order to avoid unpleasant fines.
Companies should also be aware of any laws related to drink and drug driving, as these can result in hefty fines as well as criminal proceedings. All cars must have functioning headlights, brakes and indicators, and driver should be aware that they must comply to the speed limit and use their indicators appropriately at all times. Vehicle tax must also be maintained, and companies must ensure that their fleet is up to date with all legal requirements.
Driver safety should always be at the forefront of any company’s safety and car maintenance policy. Regular training, assessments and service inspections can greatly reduce the chance of an accident or incident, and can also provide invaluable information about how to properly drive vehicles in different conditions. All drivers should be provided with regular refresher courses, which can point out any areas where improvement is needed. Companies should also implement policies for driving in difficult weather and nighttime conditions, as well as how to adjust speed for different road environments.
Seeking Professional Advice Is Essential
Company car ownership requires a great deal of planning and consideration. Companies should consult with professional advisors when considering their financial and legal responsibilities, as they may be liable for any unforeseen costs. Professional auto agents can help companies to select the best car for their purpose and can keep up to date with the latest industry changes, as well as to identify any potential problems which may not immediately be apparent. Companies should ensure that they select the right car for their needs, as the right car will play a major part in ensuring a successful automobile investment.
Companies should also take into account the type of car their employees are likely to use. Companies may benefit from choosing cars which their employees are likely to be familiar with and can comfortably use. Employees should be able to quickly and safely operate a new car, and this can reduce the learning curve associated with a vehicle purchase. This will help companies save time and money, both in the long and short term.
Companies should also consider factors such as insurance and breakdown cover when selecting a car for their business. Will the car be used internationally, and does the policy cover foreign breaks? Does the policy also include accidental damage and theft, or only cover perils such as fire, lightning and wind? Companies should carefully evaluate their insurance cover to ensure that their selections are thorough and comprehensive.
Assessing Wear & Tear
The resale value of a company car must also be taken into account. A well maintained car will hold its value more than one which has been extensively used, and companies should ensure that any cars being used in the fleet are regularly serviced and have approved wear & tear assessments. Companies should also factor in any additional labor costs associated with automobile maintenance, as these can quickly add up. Regular service visits to authorized garages are necessary for any cars over three years old, and companies may be liable for any damage incurred during vehicle use.
Companies should also investigate leasing options, which can be a much more cost effective way of providing company cars. Leasing contracts can be advantageous, as companies can hand the car back after a certain period and avoid any further costs. This can save both time and money, as companies can enjoy the benefits of leasing without the hassle of finding new cars. Companies should carefully consider their leasing options before deciding, as the terms and conditions may vary from company to company.
Cost Analysis & Company Profits
Finally, companies should routinely analyze the costs associated with their car costs. Regular data analysis is essential in order to determine whether a car is profitable or not, and can help companies to make informed decisions about their automobile purchases. Companies should avoid purchasing cars which do not meet their financial targets, as this can quickly eat into profits. Companies should also take into account the time and energy spent on finding, servicing and trading cars, as this can also reduce profitability.
Company cars can be a major expense, but with some careful planning and a thorough understanding of the costs involved, companies should be able to find cars to suit the company’s needs without breaking the bank. Companies should consider both the financial and practical aspects of a car purchase in order to maximize their long-term cost savings, and should always employ qualified professionals in order to ensure a successful car choice.
Review Process & Follow Up Protocol
Reviewing and assessing a company’s car purchases should be part of their regular operational procedures. Companies should monitor their fleet’s performance on a regular basis, both to assess the performance of individual cars as well as to make sure that any changes are being implemented as efficiently as possible. Companies may also want to review their automobile policies to make sure that they are meeting standards, and should regularly contact their car suppliers for updated information about their cars and prices. All of these activities together help to ensure that the company has a good idea of the worth of their cars.
Companies should also evaluate their customer service teams to make sure that they are dealing with customer problems efficiently. Automobile services are often customer-facing, and bad customer service can quickly damage a company’s reputation. Companies should also ensure that they are providing timely and accurate information to customers, as well as offering satisfactory customer support with any car issues. Companies should also make sure that their customer service teams have the necessary training to deal with specialized queries.
In addition, companies should make sure that they are keeping up with any new developments in the automobile industry. New technologies and features can improve the performance and value of their cars, and companies should investigate these regularly. Companies should also keep abreast of any new legal or financial regulations, and should seek advice from professional advisors to make sure that their fleet remains compliant. This is essential for any company to remain competitive, and for customers to be kept happy.
Conclusion & Summary
Company cars in 2016 can offer a wide range of benefits, from sensible savings and enhanced prestige to environmental friendliness and improved customer satisfaction. Companies should assess their individual needs and compare their options before making a decision, as this will help them to find the perfect car for their business. Safety is a major consideration, and companies should make sure that their cars follow all legal requirements. Companies may also benefit from leasing options or car-sharing applications to keep their costs down and simplify their automobile management.
Professional advisors can be a great way to ensure that any decisions are made informed, as they are trained to analyze the various costs associated with company car purchases. In addition, companies should also check their insurance and breakdown cover, as well as assessing the wear and tear on the cars. All of these elements can have a major impact on the worth of a company car in 2016, and companies should employ the necessary protocols to ensure efficient and profitable automobile upkeep.
