What Company Car Will I Get?
Choosing the right company car is an important decision for any employee. Not only does it set a certain tone for the work-related journey, it can also have a significant impact on the company’s bottom line. Companies should carefully consider the type of car to get for their employees and consider weighing the benefits against the costs.
Company cars used by employers are typically purchased from manufacturers or from dealership networks. The types of cars available are subject to the type of business the company operates, the number of cars they will need, and their budget. Generally, the company’s fleet manager is the one making the decision, taking into account the company’s priorities.
When selecting a company car, it is important to look beyond the upfront cost. Maintenance and depreciation are also key considerations. The way in which the car will be used is also important – if the vehicle is to be used mainly on business trips, then it should be strong and reliable. Cost per mile needs to be considered, as well as the associated costs such as insurance, licensing, and fuel costs.
Though cost is a priority, companies should not skimp on the safety and security of their cars. Features such as anti-theft alarms, tracking systems, and specialised paint should be considered for the company cars. For companies that are serious about their branding, customising the interior and exterior of the car with logos and designs may be important.
Another important consideration for companies looking at a company car is the convenience it provides. Company cars are usually ready to use immediately, as no additional paperwork or registration is needed. They are also relatively low maintenance, as they don’t require any additional parts or accessories, such as spare tires or car batteries.
Advantages of Having a Company Car
Having a company car offers a range of advantages to companies and employees alike. Employers are able to offer a more comprehensive compensation package which includes a company car. This helps in attracting and retaining more talent. For employees, having access to a company car simplifies their commute and reduces their personal costs.
Company cars can also be used for promotional purposes. By having the company logo on the car, business owners can raise awareness about their services and reach potential customers. Additionally, company cars can be used to impress clients and build relationships.
Finally, having a company car gives employers key insights into employee performance. By tracking the car’s usage, employers can monitor the frequency and length of employee journeys. This allows better productivity planning as well as easier tracking of expenses.
Conclusion
Selecting the right company car is an important decision for any company. From the type of car to features and convenience, there are many things to consider. Though initial cost is a priority, companies should also consider other factors such as maintenance, safety and security, and promotional purposes. Finally, having a company car can offer several advantages such as convenience, promotional opportunities, and performance monitoring.
Additional Environmental and Financial Considerations
One of the most important factors to consider when opting for a company car is the environmental cost. As corporate and governmental entities look for more sustainable ways of operating their businesses, company cars should reflect the goals and initiatives of the company in this area. Therefore, employees should consider cars that offer hybrid or all-electric options as it will help to reduce the environmental impact of the vehicle.
In addition, companies should look into the financial incentives and tax credits that might be offered to them in relation to the type of car they choose. For instance, some companies are eligible for a range of credits such as incentives for purchasing hybrid or electric vehicles, as well as credits for using alternative fuels such as biodiesel and natural gas.
Corporate Car Schemes
Apart from purchasing cars, companies can also opt for corporate car schemes. This allows them to save money on car ownership costs as the company only pays for the cars when they are used. The cars are usually leased from a car supplier or a provider who maintains the cars and collects the fees from the company. This can help the company save money on upfront costs as well as ongoing running expenses.
At the same time, there are several drawbacks to corporate car schemes. For instance, the company may not have control over the type of cars the employee can choose from and the amount of miles that can be driven. Additionally, the provider may require the company to commit to a long-term lease, making it difficult to switch cars if needed.
Company Car Policies
Finally, companies should consider having a company car policy in place. With a policy, companies can create guidelines for how the company cars should be used, ensuring that the cars are used appropriately and with respect. The policy should cover issues such as proper maintenance, acceptable uses of the cars, and rules surrounding fuel consumption.
By setting up a policy, companies can ensure that their company cars are properly taken care of, and that employees understand the proper usage and etiquette surrounding the usage of the cars. This can make sure that company cars are used effectively, and that the company does not incur any unnecessary costs.
