Lots of business have company cars, but are they always worth the hassle? The first thing to note is that every company is different, and so every firm will have a different interpretation. However, there are a few generic principles that apply to almost every business. The trick is to analyse the pros and cons and come to an informed decision.
To help you make that decision, you can find the positives and negatives of a company car below:
Cost The Company A Lot Of Money.
The first thing to note is that company cars aren’t cheap. To begin with, you need to either lease or buy one that your employees can drive. Then, you have to cover the cost of insurance, not to mention car maintenance. And, finally, you have to pick the tab when it comes to the fuel costs. The latter is just a handful of costs, but there are even more. Any company that can’t afford a company car should never get one. All you do is get into debt and put the business at risk. And, you do it so that you can enhance your image within the industry.
Good Form Of Advertising.
Although it will cost you money initially, there is a chance that you can make that money back. A car is a great form of advertising, as long as it uses your brand name and logo. Anywhere that the car goes, the public will get a good view of your company. For the most, it will work locally or wherever your employees live. But, it might end up going all over the country. The chance of making money from this type of advertising is very high. Even though it looks tacky to a degree, it is hard to avoid. Marketing is key to your success, and a company car is a marketing dream.
It is a lot of hassle to cover all of the legal aspects. For starters, you have to make sure that everyone that drives the car is on the trade insurance policy. Those that aren’t will end up in trouble with the police because they will be driving without insurance. If they end up in trouble, it will also come back to bite you on the behind. Plus, you also have to register the car and the owner with the authorities. Anyone that takes ownership of a car needs to alert the relevant people straight away. If you don’t take care of the legal aspects, you could be on the wrong end of a fine.
Enhances Your Reputation.
You should know that a firm with a company car does have a better standing the eyes of the public. In fact, a firm also has a better standing in the eyes of their peers. A company car is good for the image because people instantly think you are successful enough to buy a car for your staff. The fallout from this is good for the business as it raises awareness of the business. It isn’t impossible to receive an influx of sales because of your reputation.
In summary, company cars are a good option, but only if you have the money.