Your business isn’t confined to one particular place. Your employees are required to be mobile most of the time. Having a company car is generally considered as the most logical solution to this problem. But like everything, it too has pros and cons.
Having a corporate car can prove to be both a blessing and a curse. If you are planning to have one, its best to go through the pros and cons mentioned below before you take an ultimate decision.
Advantages Of Having A Corporate Car
Full Control: When you have a corporate car, you tend to have more control over the car, employee and the destinations. In fact, it will also be simpler to keep track of where and when the car is active. You can have a chauffeur too, but that depends on your business profitability. To get a company provided vehicle you can look for corporate cars Melbourne. It’s best to get a car that enhances your company image.
The potential for Branding: If you drive around a car that represents your company, it increases the potential for branding. You can wrap your vehicles in advertisements and perhaps it will be seen by more and more people. It’s important for the car to suit the company status. Having a beat up car for a reputable company will only lead to its image damage.
Benefits the Employees: This eliminates the need to buy their own car. This also allows them to travel to and from work and for personal transportation reasons.
Having a Chauffeur: When going for important meetings and places arriving at the place in style can really reinforce your image. Having a chauffeur for the company can really prove to be beneficial and secure. Not all companies can afford chauffeurs however having one is quite professional.
Challenges Of Having A Corporate Car
Expensive Investment Upfront: This investment is flat-out expensive. It requires a large investment of more than a thousand dollars. Most of the costs can be written off in a couple of years but it is unrealistically challenging for small business owners.
Costly Maintenance: Maintaining a car is not easy, especially if it going to be used by more than one person. This includes all the expenses for repairs, services, routine maintenance, and insurance too. Again these costs can be deducted over time, however, this can be difficult for small business owners.
Increased Requirements: It will be highly essential to keep a record of who used the vehicle, at what time, how many kilometers did the vehicle run for and all the basic requirements. This vital especially if employees have unrestricted access to the company vehicles. At the minimum, the employee will have to maintain a mileage log book.
Increased Liability: Providing company cars can prove to be a liability. Because a lot of employees will use it, at the minimum you might have to increase the insurance and face potential corporate headaches if the car meets with an accident.
You can also hire a chauffeur who will be doing all the driving, reducing the probability of reckless driving and accidents. This will also allow you to maintain the vehicle and its performance more professionally.
