Should You Offer Your Employees a Company Car?

Owning a business means being able to effectively analyse a variety of situations and come up with solutions in a fluid manner. Nothing is ever static; instead, it’s a fluid environment where you are constantly weighing pros against cons. What once seemed like a great decision or policy can change over time, due to all kinds of factors. One situation you may now find yourself in is whether or not it makes sense to offer your employees a company car. Does it make sense for your business? What would the advantages be? 

Let’s break it down in simple terms so you can make an informed decision on whether or not to get employees a company car.

It Can Be a Huge Incentive

One of the biggest advantages of providing employees with a car is that it acts as an incentive. Perhaps you can’t compete with the highest wages; instead, you are doing your best to stay competitive and fair. A good way to push employment at your company over the top is incentives. If an employee doesn’t have to worry about a monthly car payment, that is a huge relief. It can even help with employee retention.

Trust That Your Employees Can Make It to Work

There is also the benefit of knowing that employees will be able to make it to the office. They don’t have to rely on public transit or carpooling since they will have their own reliable and convenient mode of transportation. 

Time Spent Out of the Office – No Problem

Salespeople are known for having to make customer calls/visits, which means they spend a lot of time out of the office. There are plenty of other jobs that also require employees to be out on the road. In these cases, a company car should be seen as a tool to do its job properly, so there should be no question about it being necessary.

Use the Car for Advertising

Employers are also able to use the car for advertising if they wish by having a wrap or sign posted on it. If you head in this direction, be sure to include the company name, logo and website.

Shop for Used Vehicles

If you like the idea of a company car but don’t have the budget for brand new models, try looking for used vehicles. Sometimes used cars can be more affordable, depending on the make and model of course. Some vehicles may even still have the manufacturer’s warranty left on them, making them perfect for your needs. You can check out places such as Angus MacKinnon.

The best tip is to do some comparison shopping, looking at the price of new versus used models, the financing rates and the terms. 

While a company car may not be necessary for all companies and all employees, there are many situations where it does make sense and where the pros far outweigh the cons. Taking the time to go over all the facts will allow you to make an informed decision.

 

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Dean Kaplan
Dean Kaplan is president of The Kaplan Group, a commercial collection agency specializing in large claims and international transactions. He has 35 years of manufacturing, international business leadership and customer service experience. Today, he provides business planning, training and consultation to a variety of global companies.

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