The use of a company car is a common perk and popular incentive.
In the UK, at least 960,000 employees pay taxes on a company car. Flagship multi-level cosmetics brand Mary Kay offers a car as an award for “Grand Achievers.”
Deciding to offer company cars is the easy part. But how do you decide which car is the best fit?
We’ve got you covered. Check out this handy guide for picking the right vehicle for your company car benefit.
When choosing business cars, the first thing to consider is how you’ll be financing the expense. Your two main financing options are buying and leasing.
Buying cars for work is as straight-forward as buying them for personal use. The car is an investment and becomes a company asset. Car-related expenses are deductible and insurance rates are often lower than personal car insurance.
If you choose to lease a car instead, you’ll save yourself the headache of car maintenance and upkeep. You can easily incorporate the monthly payments into your budget. You’ll also have flexibility if you change your mind.
How Will It Be Used?
The nature of your company and the vehicle’s use will influence your decision-making process.
Are you looking for sedans for salesmen? If your salesmen do a lot of traveling, you’ll want something reliable and easy on the gas mileage.
Will the vehicle be used for deliveries? You’ll want something with ample storage and access like a van or a small crossover.
Make Sure the Model Matches Your Brand
Because a company car inevitably reflects the company behind it, it’s important to choose something that speaks to your brand.
If environmental friendliness is a core value, it doesn’t make sense to lease a gas guzzling SUV. A hybrid or fully electric car is a better fit.
Similarly, if you’re trying to convey luxury, you don’t want your CEO or VP driving around in an economy vehicle.
The color of your company car can also say a lot about the people driving it. Blues communicate dependability. Black is classic and powerful.
Stay away from bright yellows and reds which seem impulsive. White might seem like a neutral choice, but it actually comes off fussy and rigid.
Now that you’ve done the hard work, it’s time to have fun with it. It’s time to personalize your fleet.
Will you go bold and design a full car wrap with your logo and contact information? A wrapped business car is hard to miss.
Or will you be more subdued with subtle touches like a company-specific vanity plate? Click here to find a private plate that suits your corporate style.
What’s the Right Company Car for Your Business?
The right company car for you depends on your specific needs. Do you prefer to acquire assets or would you rather lease a car so you can change your mind? Do you need something for travel or something for deliveries?
Whatever you decide, let us help you with the paperwork. Search our free templates and forms for employee documents. And check out our advice archives for business tips and tricks.