Regardless of the business you’re in, it’s almost certain that you use a car or other vehicle to move your products, get to meetings, visit customers, or just go to work – making a company car crucial part of your operations.
Most businesses buy or lease a car, and then have its employees – managers and staff alike – use it for official and even personal trips. [Find out if it is time to buy a company car here]
So the question is, what are its benefits and costs, and how do you choose one?
Pros and Cons
Company vehicles are most often used as benefits for the company’s employees, depending on their job position and work requirements; an employee who travels a lot certainly needs it more than a deskbound officer.
However, giving your staff a vehicle means they no longer need to buy or upgrade their own car, and helps ensure they get to work consistently.
Receiving company car also helps your employees feel valued, which could help motivate them to do their best. The cost of a company car can also be considerably less than giving your employees regular transportation allowance – and a car often has a higher perceived value than ancash or similar benefit, says Paulo Tibig, president of Vintel Logistics Inc. or Vcargo.
Also, it helps your company’s image when your employees arrive in a nice new company vehicle, and not some rusty or outlandish car they own personally. [Read about a vehicle tracking system for SMEs here]
“First impressions count a lot with customers and potential clients, and providing your workforce with a company car ensures that the first image seen by your customers of your business is a good one,” Tibig says.
Likewise, company cars are a good way to save money if your business regularly hires or rents vehicles to bring employees to meetings or events, says Tibig.
“You could buy one at the cost of a few rentals a month: you could even get a discount if buy in bulk or lease multiple units simultaneously,” he adds.
Aside from its fleet of trucks the company uses for its delivery services, Vcargo also maintains about 10 cars issued to its managers and field sales officers.
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