Being able to provide a company vehicle is something that many businesses aim to provide to make the work needed for them, easier.
However, there are a few things worth noting when it comes to providing your staff with one.
#1 Is It Going To Be Used A Lot?
With any company vehicle, you first need to know what it’s used is going to be.
Only business-based driving is going to be tax-deductible, and so, for the most part, you want the car to be the vehicle to be a source of getting and from work or to and from business meetings. That should really be what the bulk of the car is used for.
The problem would be if you’re leasing or buying cars for the company, and the employee is using it for personal use more than business. You have to wonder then if getting a company vehicle is the right move for that staff member and the right move as a business.
#2 The Type Of Vehicle You Need
The vehicle you want is one that needs deciding upon, particularly if it’s going to require a larger vehicle. That’s where you’d need to consider perhaps getting truck finance in order to help pay it off.
Think about the business itself and what would be the most helpful. Maybe you need a motorbike or a van? You may want to take a look at what tasks are done using the vehicle and whether that demands certain requirements.
This might be trunk space or how many people it can hold.
#3 Remember Relevant Insurances
There are many levels of insurance and types that you can get depending on the vehicle itself. The most important thing is that you protect the vehicle itself and that the staff member driving is also covered.
The last thing you want is to be forking out expensive medical bills. This might be that with a company vehicle, you are applying extra costs and charges to each one, but if it’s a necessary spend for the company, it’s got to happen.
Business car insurance is always going to be more expensive because there may be a degree of personal usage, and that can make it more likely for a business vehicle to get damaged.
#4 Give It Only To Those That Need It
A company car is definitely a luxury vehicle and is something that is beneficial to a business. Think of both the pros and cons though, when it comes to supplying them.
There need to be more advantages than disadvantages. It should also only be given to those that need it and where it’s going to really help to bring in revenue for the company.
Assess the need for a business vehicle, do your research on what’s available and what will be best for the type of company you run. Hand it out sparingly as and when it’s required.
Encourage your staff to drive it safely, especially when it’s not being driven for a business purpose.