Imagine an employee who frequently travels for business trips or conducts offsite meetings, maybe even handles deliveries. They’ll need a dependable mode of transportation, right? This is where a company car comes into play.
Now, you might have questions floating in your mind. You’re probably wondering whether providing company cars is beneficial for both the employer and the employee. Or maybe you’re contemplating the potential downsides that come with this decision.
That’s what we’ll be exploring in detail throughout this article – offering you all you need to know to discern whether supplying a company car would be worth considering for your organization.
What Is A Company Car?
What does ‘company car’ mean? At its core, it’s a vehicle provided by employers for their employees’ use. It often takes the form of vans and sedans, or sometimes even specialized vehicles outfitted for specific jobs. These company cars serve as essential tools aiding various professionals – like salespeople, merchandisers, and field technicians – particularly those needing frequent mobility outside the office premises.
Having a company car at your employees’ disposal is tremendously beneficial. One of its main advantages is convenience. It grants employees greater mobility and flexibility while traveling and provides peace of mind since they’re not using their personal vehicles for work purposes. Additionally, it can serve as an attractive perk augmenting the company’s benefits package.
However, let’s not forget that with these benefits come certain costs. Offering a company car means the organization assumes responsibility for expenses such as gas fill-ups, routine repairs or maintenance, and car insurance.
Such outlays can escalate quickly, especially if the car is in frequent use, or if the company maintains an entire fleet of vehicles. So, you’ll need to factor all these costs into your decision-making process.
How to Keep the Costs Down When Providing Company Cars
Balancing the benefits and costs is crucial when considering offering company cars. In order to keep potential expenses under control, there are several strategies you could adopt. Firstly, think about adding used vehicles to your fleet. Though the allure of brand-new cars might be tempting as a major perk for employees, their hefty price tags can add up quite quickly.
For instance, consider sourcing used yet reliable vehicles from trusted local car dealerships in Dallas. This strategy ensures you reap all essential benefits without draining your budget excessively. Some used cars can even offer environmental advantages such as lower emissions or greater fuel efficiency – good for both your bottom line and for Mother Earth!
Securing comprehensive insurance coverage and warranties is another pivotal step toward effective cost management. Remember that these vehicles might experience accidents or mechanical problems; warranties and insurance help mitigate potential financial strain arising from complexities like repairs and maintenance.
What Are The Pros of Company Cars?
The pros of company cars include many benefits. Some of them are pretty straightforward, so we are going to list the ones that might not come to your mind immediately.
- Turning Your Fleet Into Mobile Billboards
Your business can leverage company cars far beyond their basic utility. If used strategically, they could evolve from mere transport vehicles to effective marketing tools. The ability to customize these cars with your branding gives you certain control over its public image. As the fleet moves across town or even beyond, it becomes a mobile billboard garnering attention for your enterprise.
- A Positive Reflection of Your Company’s Approach
You might have never thought about this before, but consider it now: a well-maintained company car can speak volumes about your business values and approach. For instance, adopting environmentally friendly vehicles will hint at your commitment to sustainability.
Picture this scenario: an eco-friendly company vehicle arrives at the spot for a business meet or delivery – it won’t be long before the person on the other side formulates an opinion about your brand, even before they have interacted with your employee. It leaves an impression of modernity and responsibility – and that too in such a subtle yet impactful manner!
What Are The Cons of Company Cars?
Much like everything else in your business, you will find that there are some cons to the company cars as well. You should be aware of them before you choose to license a fleet of company cars for your business.
- The Risk Is Higher The More Cars You Have On The Road
Picture this – an increase in the number of company cars on the road might inadvertently raise the risk level for your business. Why? Well, accidents, unfortunately, aren’t a rarity. They occur and, when they do, can place a liability on your company.
Who is to account when such incidents occur in one of your company cars? The hard truth is that responsibility often falls upon the company. Thus, as you put more drivers behind the wheels of company vehicles, you need to remember one thing: risks scale proportionately.
In essence, the biggest downside to having company cars is the liability for accidents.
- Employees Might Refuse
Believe it or not, there might be employees who simply love the feel of their own car. They may either cherish their personal space, or perhaps they’re just not impressed by the make and model provided by the company.
On top of this, there could be employees who rely on specific vehicle modifications or features for safe driving. These requirements might not mesh well with a standard company car, making it essential for you to consider these factors.
View Company Cars as Business Boosters
There’s no harm in exploring the potential benefits that company cars could unfold for your business. Indeed, they can offer significant advantages – if utilized correctly and thoughtfully.
Awareness of the potential pitfalls is key. So, with due diligence and careful consideration of costs, there should be no reason to shy away from this investment. After all, the goal is to foster efficiency and convenience in your operations while making sure it doesn’t break the bank.