Have you been back and forth over whether or not you should invest in a company car or vehicle for your employees? It’s not surprising as there are many pros and cons to consider. For example, if employees have their own cars that they can use, do you want the added expense? Are there any tax benefits? If you do choose to go ahead, should you lease or buy? Can you afford the business car insurance payments which will likely be higher than personal use car insurance premiums? It’s important to consider all of these questions properly, but there’s no doubt a company car or fleet can be beneficial to your operation.
In the end, your final choice needs to be right for your situation, but if you are still trying to make up your mind and are struggling to see the benefits, take a look at these four persuasive reasons to invest in a company car.
- Advertising and brand awareness
From large vans to small run-around cars, driving a commercial vehicle around your local area can be a simple but effective way to increase brand awareness. A striking design with customised graphics, logos, catchy marketing slogan, along with your contact details can help your brand be top of mind. Drivers and pedestrians will see your business while you’re travelling, sitting in traffic, parked at the side of the road, or even on your driveway at home or work. Even if they’re not looking for your service now, if they see your car enough, they may well think of you at a later date.
Advertising on billboards can be costly, but investing in a company car could have the same if not greater impact for a one-off cost.
If you are leasing a car rather than buying, consider a temporary design such as a wrap, which can be removed at the end of the lease.
- It can be seen as an employee benefit
If the car is driven by one or more employees, allowing them to take the vehicle home at the end of the day could be seen as a perk from their perspective, while you get some hours of business advertising.
- It could bring tax benefits
Although this is an area where you will need to consult a professional accountant, leasing or buying a car canbring tax benefits to your business.
- Separate business from personal
A big reason to invest in a company car is to separate your business from your personal assets. If you are a sole trader and use your own car for business, it may be at risk if your business gets into difficulties. By purchasing a separate vehicle with the right level of commercial car insurance, you can protect your personal assets.
Be aware that in many cases if you include named drivers on the policy and allow employees to drive it, should an accident occur, the business cou