- October 8, 2019
- Posted by: Asheesh Sinha
- Category: Business plans
A company car can be a wise investment for your business. If you are conducting business that takes place all over the area where you’re located, some form of transportation is going to be needed. Your company car doesn’t need to be incredibly expensive or brand new, but you should invest in a company car that reflects your quality of business. If you’re thinking about obtaining a company car for your business, there are a few things that you need to know.
How Will the Car Be Used?
A company car is a vehicle that is used for a variety of business purposes. It can be used for employees to get to meetings. It can be branded with your logo or information. When you drive it around, this is a form of marketing and promotion. You’re also able to provide employees with a method of transportation that doesn’t require them to put wear and tear on their own vehicles. It is also cost-efficient because nobody wants to pay an employee per mile when they need to travel for business meetings or conferences. Most staff members appreciate this perk of the job.
They Are an Expensive Investment
There are many different makes and models of vehicles on the market right now. While some are more affordable than others, a vehicle is still a very big investment. Before going right out and purchasing a company car, you want to make sure that this is a wise investment. In addition to the initial price of the vehicle, you need to budget for things like routine maintenance, inspections, repairs, gas, etc. It’s important to make sure that this is an investment you can take on for the entire life of the vehicle. Also, remember that owning a company car means that you might have to pay company car tax, depending on where you live.
It’s a Good Idea to Lay Down Some Rules
Your company car shouldn’t be a vehicle that gets mistreated and beat up by people that are using it each business day. Some rules are probably needed in order to keep it safe and in one piece. The top causes for car accidents include distracted driving and road rage, so make sure to include those in your rules. It might even be a good idea to put a camera in the car to monitor driver behavior. Let employees know what you expect from them. This way, they will treat the company car with the respect that they would give to their own vehicle that they pay for. You may not want employees to take the vehicle home with them at the end of the day. This could leave the vehicle open to a lot of misuses.
If you have a friend or business partner that has used a company vehicle in the past, it might be a good idea to get their opinion on the situation. There may be some more tips that you haven’t thought about. If you decide to go ahead and purchase a company car, take the time to research the make and model you want to select. You want to find a vehicle that is safe, efficient and comfortable.
Here’s another article you might like: How Much Money Will You Need to Start Your Business?