Company Cars: Rules, Costs & Popular Cars
Company cars can be an extremely attractive perk for employees and have many benefits to the employer as well. [give estimated company vehicles on the road]
Should Companies Offer Vehicles To Employees?
Among the chief benefits of providing business vehicles for your staff is…
- Increased Exposure: A company vehicle can act as a sort of “rolling billboard” for your business. Every time an employee is driving the company car, others are exposed to your business if you have signage on the vehicle. You see this quite effectively in many of the trades, such as electric, heating, plumbing, construction & real estate.
- Visible Reward: Employee morale is incredibly important to the success of a business. The happier your employees are, the more productive they can be. In lieu of an actual bonus (i.e. more money) some company’s use a company vehicle as a reward and it works well in 2 ways.
- It’s Not Common: If you work somewhere and only a select few people get a company car it can make you the employee feel special and committed to the company.
- Other Employees See This: Many employees will see the employees that get company cars and aspire to hit the same goal. They may look at the company vehicle as the ultimate reward, and most importantly they’ll have to work hard to get it. It’s the ultimate trophy.
- High-Quality Company: If you give out company vehicles your employees know you value them. Not all companies have this perk and the companies that do have employees that know there’s a very special, attainable reward that only high-quality companies can offer.
- Flexibility: Much like private air travel or a company cell phone a company vehicle gives an employee a definite convenience factor, and more peace of mind to the company. As an employer, you know that your key people have a company vehicle to conduct business at any time, as necessary.
- Professional Image: This could actually be one of the best reasons to offer a company car, your business’ image. When a company is looking to retain control of their “brand” or public image, especially if there are face-to-face meetings of any kind, such as repair, real estate showings, estimates, high-powered business deals – a vehicle is one of the first things the prospective client or customer sees. You want your vehicle to represent your business, goals, experience & results. Many companies that offer vehicles to their employees know the right vehicle can make the best first impression.
We know the reasons why businesses choose to offer company vehicles, but what we don’t know are the rules, costs or tax implications associated with running a fleet of business vehicles, or even a select few company cars.
So, let’s start from the top.